German cableco Tele Columbus (ETR:TC1) is reportedly considered the favoured buyer for smaller peer Pepcom, which may fetch a price of about €700m (US$774m).
There are other strategic as well as private equity suitors and a buyer is expected to be…
German cableco Tele Columbus (ETR:TC1) is reportedly considered the favoured buyer for smaller peer Pepcom, which may fetch a price of about €700m (US$774m).
There are other strategic as well as private equity suitors and a buyer is expected to be selected as soon as September, Reuters cited people familiar saying.
A spokesperson for Berlin-based Tele Columbus declined to comment on a potential acquisition of Unterfohring-headquartered Pepcom, which is owned by London-based Star Capital Partners, but said the company generally considers itself to be in “a leading role for the further consolidation of the German cable market”.
“We are always interested in growth opportunities that are attractive from an economic and strategic perspective,” he said.
Pepcom could be valued at 10-11 times its 2015 EBITDA, expected to stand at €64m, the report stated. The company claims to provide TV, radio, internet and telephone services to more than 750,000 homes.
Star Capital, reportedly advised by HSBC, has declined to comment. Pepcom was not immediately available.
Earlier this month, Tele Columbus bought Leipzig-based Primacom for €711m (US$774m), combining German’s third and fourth largest cablecos. Together, their networks connect 2.8 million homes.
At the time, Tele Columbus CEO Ronny Verhelst said he was keen to do more deals, extolling the benefits of scale.
Tele Columbus listed on the Frankfurt Stock Exchange in January, raising €367m (US$427m). It used the proceeds to improve its capital structure to prepare for opportunistic acquisitions.
