Stofa acquires Canal Digital cable unit for DKK100m

10 Jan 2011

Danish cable operator Stofa has announced it has purchased the cable division of Canal Digital, which is owned by Norwegian telecoms group Telenor, for around DKK100 million (USD17.4 million). Under the deal, Stofa will acquire 633,000 households that receive their signals under agreements with local antenna associations, while around 32,000 triple-play subscribers are also included. Jarl Soderman, CEO at Canal Digital Denmark, said the reason behind the sale was that the company was unable to benefit from any synergies between cable operators in the different Nordic countries. ‘Canal Digital is currently too small a player to develop new services and products for the cable television market. I am convinced that our customers in the Danish antenna association market have a highly professional and visionary partner in Stofa,’ he added. The acquisition takes immediate effect, although approval from the Danish Competition and Consumer Authority – expected by the end of Q1 2011 – is required. According to TeleGeography’s GlobalComms Database, Stofa was acquired by TeliaSonera group in 1995. In July 2010 the Swedish company sold its Danish cableco to private equity company Ratos for DKK1.1 billion on a cash and debt free basis. Stofa owns a 2,100km fibre-optic cable backbone passing around 600,000 of Denmark’s 2.5 million homes, 350,000 of which are able to access its broadband, TV and fixed telephony offerings.

Denmark