The chief executive of German cableco Unitymedia KabelBW has confirmed the company is considering bidding for rival Primacom.
Lutz Schuler told Bloomberg that Unitymedia is looking at everything on offer in the local cable market in order to improve…
The chief executive of German cableco Unitymedia KabelBW has confirmed the company is considering bidding for rival Primacom.
Lutz Schuler told Bloomberg that Unitymedia is looking at everything on offer in the local cable market in order to improve its competitiveness and is particularly keen to expand in internet services.
Jefferies, the bank advising Primacom’s owners on the planned sale, reportedly sent out a prospectus to a small number of potential buyers in late May.
Germany’s number one cableco Kabel Deutschland (KDG), which agreed to acquire rival Tele Columbus for €618m at around the same time – a deal still subject to regulatory approval – and Deutsche Telekom are also expected to look at Primacom.
Leipzig-based Primacom, which provides internet, TV and telephone services to about one million households, mostly in eastern Germany, is expected to sell for at least €400m (US$494m).
Its current owners include Alcentra Group, Tennenbaum Capital, Avenue Capital and ING.
The German Federal Cartel Office (FCO) cleared Unitymedia’s takeover of Kabel Baden-Wurttemberg (KabelBW) in May, after a five-month investigation, subject to far-reaching remedies.
