Unitymedia KabelBW eyes PrimaCom

6 Aug 2012

Unitymedia KabelBW, the wholly-owned German cable unit of US operator Liberty Global Inc (LGI), is considering a bid for regional cableco PrimaCom, reports Bloomberg citing Unitymedia CEO Lutz Schueler. ‘We are looking at everything that is on the market, so also PrimaCom,’ the executive said by phone, adding: ‘We are an active driver of the consolidation process in the cable market, as we believe that this is necessary to be in a competitive position.’ Leipzig-based PrimaCom serves over one million cable subscribers in small to medium-sized cities in 15 states, predominantly Berlin, Brandenburg, Saxony, Saxony-Anhalt, Thuringia and Mecklenburg-Vorpommern. Untitymedia KabelBW meanwhile comprises Unitymedia, which operates networks in the federal states of North Rhine-Westphalia and Hesse, and Baden-Wurttemberg-based Kabel BW. Unitymedia was purchased by LGI in January 2010 for an enterprise value of EUR3.5 billion (USD4.3 billion), while Kabel BW was snapped up from Swedish private equity firm EQT in March 2011 for EUR3.16 billion. A plan to merge Kabel BW with Unitymedia was approved by the Federal Cartel Office (FCO) in December 2011, and the merger was completed on 1 July 2012, although the individual brands continue to exist in the pair’s separate footprints. At the end of June 2012 Unitymedia KabelBW served around seven million customers across its combined footprint, providing a total of 10.801 million services, up 8% from 10.006 million at mid-2011.

Germany, PrimaCom, Unitymedia