Kabel Deutschland Holding AG (KD8GN) said it has entered into a purchase agreement with Tele Columbus GmbH to buy the Tele Columbus Group.
According to Kabel Deutschland, the purchase price amounts to 603 million euros plus accrued interest. As of December 31, 2011, this would have been equivalent to 618 million euros. The purchase price will provide for repayment in full of the financial debt of Tele Columbus.
Kabel Deutschland stated that the transaction resolves to a large extent the separation of cable network levels as is already the case in the footprints of Unitymedia in North Rhine-Westfalia and Hesse and of Kabel BW in Baden-Wuerttemberg. Following a successful closing of the acquisition, most of Tele Columbus' customers will be able for the first time to subscribe to Kabel Deutschland's high speed internet products and new TV services. Hence, the transaction will strengthen the existing broadband infrastructure competition in Germany, the company added.
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