Primacom attracts interest

17 May 2007

The German cableco Primacom has confirmed interest from several bidders. In local press reports, chairman Hans-Werner Klose said there are a number of parties interested in the company, which serves about 1.3 million households. The two parties most likely to be interested are rivals Kabel Deutschland (KDG), the largest cable operator in Germany, passing nearly sixteen million households in 13 federal states, and Orion Cable, which already owns 25.8% of Primacom and a majority stake in cable rival EWT. People familiar with the situation estimate the current value of the company at nine times the EBITDA, or almost EUR454 million (USD616.4 million). Primacom reported revenues of EUR116.4 million in 2006 and an EBITDA of EUR50.4 million.

Germany, Kabel Deutschland, PrimaCom