Telekom Austria paid EUR119.7m for Blizoo Bulgaria

21 Oct 2015

Telekom Austria has acquired Bulgarian broadband operator Blizoo for EUR119.7 million (USD139.2 million). In its financial report for Q3 2015, the Austrian company said: ‘As of 30 September 2015 the purchase price of EUR35.4 million was already paid and is presented in long-term investments as the allocation of the consideration is not yet available. Additionally, Telekom Austria Group paid debt on behalf of Blizoo Bulgaria in the amount of EUR84.3 million which are presented in other non-current assets and will be eliminated after first consolidation.’

TeleGeography notes that Blizoo offers digital/analogue cable TV, high speed internet access and voice telephony, and operates its own 2,000km national fibre-optic backbone while using HFC technology, including DOCSIS 2.0 and DOCSIS 3.0 upgrades, to connect to customers’ premises. The operator had 373,000 subscribers on its books as of September 2015.

As reported by TeleGeography’s CommsUpdate in July 2015, M-Tel – a subsidiary of Telekom Austria Group – agreed to acquire 100% of the Bulgarian cableco from Sweden-based investment fund EQT. Previously, EQT hired Jefferies and UniCredit as financial advisers for the potential sale of Blizoo in September 2013, but called off the sale in November 2013, with ‘limited interest and major differences in price expectations’ cited as the main reasons for the failed divestment.

Bulgaria, A1 Bulgaria (Mobiltel), A1 Telekom Austria Group, Blizoo (Bulgaria)