The European Bank for Reconstruction and Development (EBRD) has invested €50m in SBB/Telemach, South-East Europe’s largest pay-TV provider.
EBRD said the investment increases its exposure to SBB and will support the expansion of the group…
The European Bank for Reconstruction and Development (EBRD) has invested €50m in SBB/Telemach, South-East Europe’s largest pay-TV provider.
EBRD said the investment increases its exposure to SBB and will support the expansion of the group throughout the region. The development bank has provided both debt and equity financing to the Serbian-headquartered DTH operator and cableco since 2004.
Dragica Pilipovic Chaffey, CEO of SBB, commented: “Having the support and confidence of such a financial institution like the European Bank for Reconstruction and Development will enable the ambitious expansion of SBB/Telemach Group, which is dedicated to providing a wide range of high quality services to its users under affordable prices.”
In October 2013, SBB was acquired by private equity firm Kohlberg Kravis Roberts for approximately €1bn (US$1.35bn).
To fund the deal, SBB raised €475m (US$645m) through a 7-year 7.875% senior bond offering. It was the first high-yield bond ever executed in Serbia, while the acquisition itself was KKR’s first direct investment in Southeast Europe.
Izzet Güney, director for information and communication technologies at the EBRD, said: “We are very excited about KKR’s maiden investment in the EBRD region. This is a watershed transaction which demonstrates the attractiveness of the Western Balkans area for world class private equity players. We are also extremely pleased to continue our support of SBB’s management team and vision.”
The SBB/Telemach Group currently operates in six markets in the region, with 1.69 million cable and satellite TV, broadband, fixed and mobile customers.
Its expansion was primarily down to the buy and build strategy of its previous owner, another private group Mid Europa Partners.
Following its acquisition of Serbia-based SBB in 2007, Mid Europa bought and merged some 18 businesses across the region.
