After closing the acquisition of German cable operator Pepcom last week, private equity firm Star Capital is now in talks with banks to finalise the terms of the debt, TelecomFinance has learnt.
Two sources confirmed that the transaction is worth a total…
After closing the acquisition of German cable operator Pepcom last week, private equity firm Star Capital is now in talks with banks to finalise the terms of the debt, TelecomFinance has learnt.
Two sources confirmed that the transaction is worth a total of about E300m including E100m in bank debt. The loan is expected to be signed by the end of the third quarter, one source said. French banking group Crédit Agricole will arrange the financing.
Star Capital has acquired about 90% of the cable operator, including the 81% equally owned by GMT Communication Partners and Veronis Suhler Stevenson (VSS) and the 9.5% held by Pepcom founder Heinz-Peter Labonte. The remaining 9.5% is still in the hands of Martin Bilger, Pepcom’s CEO since 2007, and his team.
According to a TelecomFinance source, Star Capital may now look to further consolidate the German cable market by making several acquisitions in the sector.
The source believes that if Pepcom completes these different acquisitions, it could be listed. Otherwise it could be sold to Kabel Deutschland (KDG). Last July, KDG was said to be close to buying Pepcom.
Legal advisers on the deal for GMT and VSS were Noerr, Weil Gotshal & Manges and Baker McKenzie. Deloitte served as a financial adviser while Rothschild is also believed to have had some involvement in the transaction.
Jones Day and Deloitte are believed to have provided legal advice to Star Capital.
