US-based cableco Liberty Global has agreed to buy Polish cable operator Aster from Mid Europa Partners in a transaction worth PLN2.4bn (E596m).
The deal consists of an equity purchase price of PLN870m (E216m) and about PLN1.53bn (E380m) in debt. Liberty…
US-based cableco Liberty Global has agreed to buy Polish cable operator Aster from Mid Europa Partners in a transaction worth PLN2.4bn (E596m).
The deal consists of an equity purchase price of PLN870m (E216m) and about PLN1.53bn (E380m) in debt. Liberty Global said it would use its liquidity to finance the acquisition.
Mid Europa was advised by Credit Suisse, while Liberty Global did not use any external financial adviser but received legal counsel from Allen & Overy.
Liberty Global already owns leading Polish cable operator UPC. The deal is subject to regulatory approval, but market sources do not expect any problems since Aster is a regional rather than national operator.
Mike Fries, President and Chief Executive Officer of Liberty Global stated, “Our Polish operation has consistently been one of our best performers over the last several years. This acquisition will enhance our market position and ensure that our superior network and next generation digital and broadband products are made available to Aster’s customers. The Polish cable TV market is highly fragmented, and this is a natural and necessary step towards consolidating the industry and ensuring that cable continues to drive investment and innovation. Given the characteristics of Aster’s business and the proximity to our existing operations, the deal is attractively priced at approximately 7.3 times our estimate of Aster’s 2011 EBITDA, including anticipated annual synergies to be realized following full integration of the acquisition.”
The transaction is expected to close in H1 2011.
At the end of September Aster had 368,000 TV, 177,000 internet and 70,000 fixed-line subscribers.
Mid Europa and the management team acquired Aster in March 2006 for PLN1.6bn (E412m) including a debt package of E270m.
