Competition body approves Cgates acquisition

5 Feb 2015

Lithuania’s Competition Council has cleared the acquisition of all shares in cable network operator Cgates by Motis Shipping Lithuania Limited, after determining that the transaction would not have a negative impact on competition in the market. Dormant company Motis Shipping is a subsidiary of Estonian cable TV subsidiary Starman, itself owned by Swedish investment group East Capital. As announced in December, Starman agreed to acquire Cgates from Advanced Broadband (43.6%), SEB Venture Capital (39.9%) and SEB Stiftelsen (16.5%) in a deal valued at EUR56.3 million (USD68 million). As part of the same deal, East Capital is to invest a further EUR23 million into Starman, raising its equity stake from 51% to 62%.

According to TeleGeography’s GlobalComms Database, Cgates is one of Lithuania’s largest cable network operators, providing cable and digital television, fixed telephony and fibre-optic broadband internet to around 200,000 customers in the country’s largest cities, including Vilnius, Alytus, Marijampole, Vilkaviskis, Silute, Lentvaris and Kaunas.

Lithuania, Cgates, Starman