UK-based private equity firm Star Capital is said to be the mystery bidder for German cable operator Tele Columbus, the Financial Times Deutschland reported.
Star Capital could not be reached for comment.
A week ago, media reported that a financial…
UK-based private equity firm Star Capital is said to be the mystery bidder for German cable operator Tele Columbus, the Financial Times Deutschland reported.
Star Capital could not be reached for comment.
A week ago, media reported that a financial investor, potentially US PE firm Providence, had expressed interest in the cableco and that the deal value could reach as much as E700m.
From a regulatory point of view, it is unlikely that the Cartel Office would oppose such a deal, because Providence recently sold its remaining 22% stake in Germany’s number one cableco, Kabel Deutschland.
Similarliy, antitrust risks for Star Capital are small. Although the sponsor bought another cable operator, Pepcom, last year, a deal between the two companies is not expected to raise concerns given that they are both medium-sized.
An expert in the industry told TelecomFinance that further consolidation between several mid-sized cablecos can be expected.
At the beginning of the year, Tele Columbus cut about E400m in debt. Restructuring specialist Nikolaus & Co, which controlled Tele Columbus, handed ownership to Tele Columbus Management.
Following the restructuring, the company said it was looking to further consolidate in the fragmented German cable market.
