Swedish private equity firm EQT may sell German cable operator Kabel BW, according to Dow Jones Newswires citing sources close to the matter.
Although a deal could take place this year, one of the sources was reported as saying that a sale would likely…
Swedish private equity firm EQT may sell German cable operator Kabel BW, according to Dow Jones Newswires citing sources close to the matter.
Although a deal could take place this year, one of the sources was reported as saying that a sale would likely happen in 2011, as plans are still at an early stage.
The sources quoted by Dow Jones did not elaborate on the exit strategy EQT will use. No banks have been appointed for the sale, according to the report.
Many private equity firms are expected to exit their European cable assets, as the investment horizon is now reaching an end. In an ideal world, these exits would be via IPOs, but the market would have to improve enormously for such an option to make sense. The likelihood is instead a series of secondary buyouts, which would see the firms mix and match the assets they currently own amongst themselves.
A few weeks ago, KabelBW completed the purchase of units in the Baden-Württemberg province from rival Tele Columbus. The assets have approximately 50,000 customers.
Kabel BW is wholly-owned by EQT, which acquired the company in 2006 from Blackstone for E1.3bn (US$1.65bn).
EQT could not be reached for comment by press time, and a spokeswoman for Kabel BW was unaware of the speculation.
