Private equity firm CVC has resurrected plans to sell off its Swiss telecom provider Sunrise and could hire a bank to advise on the deal by the end of the year, Reuters cites several sources familiar with the matter as saying. CVC scrapped plans to put the full service provider up for sale late last year after recording weaker than expected cash flows, due to heavy investments in upgrading and improving Sunrise’s networks business, including the deployment and launch of 4G Long Term Evolution (LTE) services. The rumoured deal is expected to take the form of either a sale or an initial public offering (IPO) and is anticipated to be worth up to CHF4.9 billion (USD5.2 billion).
According to TeleGeography’s GlobalComms Database Sunrise represented 21.5% of the mobile market at the end of June 2014 with 2.487 million subscribers, behind the 6.46 million claimed by market leader Swisscom but just ahead of third-placed Orange with 2.18 million users. In the broadband space, however, Sunrise is in third place behind Swisscom and Cablecom, with around 330,000 subscribers, or 9.6% of the sector.