Swedish private equity firm EQT has received at least five bids for Kabel BW, the number three German cableco, Reuters wrote citing people close the matter.
The bidders reportedly include US cable giant Liberty, the owner of number two player Unitymedia,…
Swedish private equity firm EQT has received at least five bids for Kabel BW, the number three German cableco, Reuters wrote citing people close the matter.
The bidders reportedly include US cable giant Liberty, the owner of number two player Unitymedia, as well as four private equity firms: CVC, Cinven, Providence (which owns 45% of Germany’s largest cableco Kabel Deutschland), and Hellman & Friedman.
EQT could get as much as E2.5bn from a sale but the PE firm is reportedly still considering listing the cable company, as it could allow it to earn more money – about E3bn, 10x Kabel BW’s EBIDTA.
Providence last year listed Kabel Deutschland (KDG) after saying it was also considering selling the cableco to a strategic buyer. But a banker familiar with cable deals told TelecomFinance that suitors are not keen on such dual-track processes, given that they might waste their time.
However, the main question for strategic suitors is whether the German regulator would allow such a transaction to take place, especially since the federal cartel office previously told KDG it was not allowed to merge with Kabel BW or Unitymedia on anti-trust grounds.
The regulator’s main concern is believed to be on the content side rather than the delivery side, since the current market leaders control different regions within the country.
EQT, which paid E1.3bn for the company in 2006, is advised by JPMorgan and Deutsche Bank. Unitymedia is believed to have hired Goldman Sachs as its adviser.
