Starman completes acquisition of Lithuania’s Cgates

17 Feb 2015

Estonian cable TV company Starman has completed the acquisition of all shares in Lithuanian operator Cgates for a total enterprise value of EUR56.3 million (USD64.2 million), following approval from the local competition authority. In conjunction with the transaction, Starman’s owner East Capital Explorer has made an additional investment of EUR22.5 million in Starman through a share issue, thereby increasing the Swedish investment group’s ownership from 51% to 63%. ‘With the acquisition of Cgates, Starman will further strengthen its position in the Baltic markets after having shown strong results and value generation since our acquisition in May 2013,’ stated Mia Jurke, CEO of East Capital Explorer, continuing: ‘The add-on investment is yet another step in our ambition to create a unique private equity and real estate portfolio.’

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 twelve cities, including Vilnius, Alytus, Marijampole, Vilkaviskis, Silute, Lentvaris and Kaunas.

Estonia, Lithuania, Cgates, Starman