There are rumours doing the rounds that a new strategic suitor has emerged for Swedish cableco Com Hem, which has led to the original deadline being postponed.
TelecomFinance has confirmed yesterday’s report that Nordic Capital had dropped out of the…
There are rumours doing the rounds that a new strategic suitor has emerged for Swedish cableco Com Hem, which has led to the original deadline being postponed.
TelecomFinance has confirmed yesterday’s report that Nordic Capital had dropped out of the process, leaving the Cinven/BC Partners consortium as the only private equity bidder in the running. It is understood that Nordic was unwilling to pay the E1.8bn sellers Carlyle and Providence are expecting. Yesterday’s report also noted that another trade buyer was showing interest, referring to two sources familiar with the process.
A source familiar with the talks told TelecomFinance that the original deadline of July 8 was pushed back to July 14, and then July 15 because of the emergence of a new strategic suitor that is thought to be advised by Goldman Sachs.
Telenor, TeliaSonera and Tele2, all speculated as potentially interested parties at the start of the process, are not thought to be involved.
Liberty Global has twice in the recent past swooped in at the last minute to buy assets, in the dual track exits of Kabel BW this year and Unitymedia last year. In its agreed bid for German number three cableco Kabel BW Liberty is advised by Goldman Sachs. The proposed transaction is currently under investigation by Germany’s Federal Cartel Office, in a process that is expected to take many months.
A second person familiar with the process refused to comment but pointed at comments made by Liberty CEO Mike Fries in a recent interview. Fries had told Dow Jones yesterday that the company was looking for further acquisitions, focussing further on Europe.
Liberty has publicly stated an interest in Dutch cableco Ziggo, but it is not thought that sellers Cinven and Warburg Pincus want to undergo a long regulatory process – although local regulator OPTA has this month softened its stance on cable competition thanks to rising access to IPTV.
In Australia, leading pay-TV operator Foxtel has bid to buy 100% of local satellite and cable TV operator Austar – in which Liberty holds a 54% stake – for some A$1.52 (US$1.62) per share in cash, valuing the company at A$2.5bn (US$2.7bn), including net debt of A$525m (US$559m) as of March 31, or an enterprise value of about 10 times Austar’s consolidated operating cash flow.
Liberty Global is being advised by Credit Suisse and Allen & Overy, Austar hired Goldman Sachs and Freehills, while Foxtel chose UBS, according to reports.
If the Com Hem sale process does not complete this week, it is understood that the sellers are happy to wait until after the summer to resume the sale. Furthermore, assuming that the markets pick up, an IPO remains a possibility.
However, despite the challenging macroeconomic situation in Europe, Providence managed to sell its remaining 22% stake in KDG, raising E828m overnight.
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