German cable network operator Kabel Deutschland Holding AG (KBDHF.PK) on Monday said it agreed to acquire privately held cable TV, Internet, and phone service provider Tele Columbus GmbH for 603 million euros plus accrued interest
As of December 31, 2011, the purchase price would have been equivalent to 618 million euros, the company noted. The deal price will provide for repayment in full of the financial debt of Tele Columbus.
Kabel said the acquisition is subject to the approval of the German Federal Cartel Office.
Berlin-based Tele Columbus provides basic cable services to about 1.7 million customers in 2.1 million homes connected. It is Germany's largest network level 4 cable operator and operates predominantly in Berlin and in Eastern Germany including the cities of Dresden, Magdeburg and Potsdam. Tele Columbus is owned by holding company Orion Cable - controlled by investment banking firm Nikolaus & Co.
Kabel pointed out that the business of Tele Columbus overlaps to a large extent with its footprint. In the fiscal year 2011 Tele Columbus reported revenues of 218 million euros and an operating result or EBITDA of 81 million euros.
The company noted that the deal resolves to a large extent the separation of cable network levels and will strengthen the existing broadband infrastructure competition in Germany. Following a successful closing of the acquisition, most of Tele Columbus' customers will be able for the first time to subscribe to Kabel's high speed internet products and new TV services, it said.
Kabel closed its Friday's trading at 46.18 euros on Frankfurt's Xetra.
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