Swedish investment firm East Capital Explorer has agreed to acquire a majority stake in Estonian cableco and ISP Starman.
Nasdaq-listed East Capital Explorer will pay about €24m for a 51% stake in Tallinn-based Starman, based on a total company value…
Swedish investment firm East Capital Explorer has agreed to acquire a majority stake in Estonian cableco and ISP Starman.
Nasdaq-listed East Capital Explorer will pay about €24m for a 51% stake in Tallinn-based Starman, based on a total company value of €107m, the investment firm said in a statement. The shares are currently owned by a consortium led by Bancroft Private Equity.
Starman co-founders Peeter Kern and Indrek Kuivallik will hold the remaining 49% stake. They have agreed to invest an extra €5m on the same terms as East Capital Explorer to increase their current equity stakes.
SEB and Swedbank are financing part of the acquisition with a loan.
East Capital Explorer CEO Mia Jurke said the investment will equal almost 9% of Starman’s net asset value as of 31 March.
“Private equity in the Baltics is one of our focus areas and we see a strong potential in the company which will benefit from the consumer-driven growth in the Baltic countries,” she said.
The investment firm’s head of Baltic private equity, Gert Tivas, described Starman, which has a digital network covering all major Estonian cities, as “a well-managed company with a track record of solid financial performance and high profitability”.
“We see further opportunities for growth in this area in the Baltics and Starman is well-positioned to take advantage of this growth. We are looking forward to further developing the company together with the founders.”
The transaction, subject to the approval of Estonia’s competition authorities, is expected to be completed in Q2.
Starman has about 130,000 cable TV and 60,000 broadband customers, according to the statement.
Stockholm-base East Capital Explorer’s stated aim is to bring investment opportunities in Eastern Europe to a broader investment base, with a focus on fast-growth sectors.
