Regional Spanish cable operator Euskaltel is reported to have hired Rothschild to prepare an IPO which could prove the spark for consolidation of three small independent cablecos in the north of the country.
Private equity firms Trilantic and…
Regional Spanish cable operator Euskaltel is reported to have hired Rothschild to prepare an IPO which could prove the spark for consolidation of three small independent cablecos in the north of the country.
Private equity firms Trilantic and Investindustrial, which together own 48.1% of Euskaltel, would be the leading sellers in a listing, according to Spanish news outlet Expansion citing sources close to the company.
Between 25% and 30% of Euskaltel would be listed and the float could come in June or July, the report said. It could reportedly be valued at between €400m and €500m.
Euskaltel, Rothschild, Trilantic and Investindustrial did not respond to requests for comment.
Regional bank Kutxabank owns 49.9% of the operator and the remaining 2% is held by Bilbao-based utility Iberdrola.
Euskaltel is one of three cable operators, alongside CVC Capital Partners’ R Cable and Carlyle’s Telecable, which industry watchers have expected to merge for some time.
Last year Vodafone closed its acquisition of Spain’s largest cableco, Ono, for €7.2bn, and Orange agreed a fee of €3.4bn for the next largest fixed-line player, Jazztel; which is currently being reviewed by the European Commission.
Following those deals the only three operators independent of larger mobile players are Euskaltel, in the Basque Country, Telecable in Asturias, and R Cable in Galicia.
The companies could merge, or be bought up one by one. According to Orange CEO delegate Gervais Pellissier, who oversees the French group’s Spanish operations, Vodafone is the “natural acquirer” of the assets.
Speaking to TelecomFinance last October, Pellissier said the fact that the operators used cable technology, like Ono, and not the DSL and FTTH that Orange and Jazztel use, meant it was unlikely Orange would look at the companies. He said the only one it may examine is Euskaltel, with which it already has an MVNO agreement, but thought it unlikely.
