Stofa acquires Canal Digital’s Danish cable assets

Danish cableco Stofa has completed its DKr51m (US$9.4m) cash acquisition of satellite broadcaster Canal Digital’s cable assets in Denmark.

Stofa acquired 31 cable networks from Canal Digital Denmark, owned by Norwegian mobile operator Telenor, which will keep on to the satellite side of its business in the country.

Klaus Høeg-Hagensen, CEO Stofa, said the acquisition will help shore up the company as it faces tough competition in Denmark.

“This acquisition makes us bigger and stronger,” said Høeg-Hagensen.

“We will always be number two behind the old monopolies, but with an increased customer base and a higher commerce power we will do better in a market in turmoil.”

Telenor divested the Danish cable assets of Canal Digital, which is also present in Norway and Sweden, after highlighting a lack of synergies between its Nordic cable divisions.

Earlier this year Stofa attempted to merge with Canal Digital Denmark in its entirety, but the companies were forced to withdraw this proposal after regulatory authorities flagged competition concerns.

The cable assets acquired by Stofa represent a significantly smaller deal, enabling it to pass under the regulatory radar, according to a spokesman for the Danish firm.

Stofa, which is owned by PE firm Ratos, was legally advised by Accura, while lawyers at Plesner advised Telenor.

Back in March, reports had suggested that media firms Bonnier of Sweden and Egmont of Denmark were looking at acquiring Canal Digital as a whole. When contacted by SatelliteFinance, a spokesman for Egmont strongly denied the reports, saying they were baseless.

Telenor declined to comment on the speculation.

Canal Digital was established in 1997 as a joint venture between Telenor and French payTV firm Canal+. Telenor bought out its French partner in 2002 for an undisclosed sum.