Cogeco seeks international buyer for Cabovisao

25 Nov 2011

Canada’s Cogeco Cable is reportedly in the process of contacting a number of Portuguese and international telecoms operators and private equity funds with a view to offloading Cabovisao, its wholly-owned Portuguese cableco. Telecompaper, citing Portuguese news site Lusa, reports that negotiations with unnamed parties are already underway, although no price has yet been set. Back in June 2006 Cogeco acquired Cabovisao from fellow Canadian operator Cable Satisfaction International Inc (CSII) for EUR465 million (USD600 million), but Cogeco has endured a torrid time in Portugal since entering the market. According to TeleGeography’s GlobalComms Database, after breaking new ground with its own innovative triple-play package back in 2000, Cabovisao’s subscriber figures have suffered a steady decline in recent years, and all three of its principal business areas (cable TV/broadband/telephony) have witnessed significant declines. The operator blamed the slump in subscribers on tougher-than-expected competition, with Portugal Telecom (PT) and Sonaecom both launching rival triple-play offers.

Portugal, Cogeco Connexion, Nowo