Euskaltel closing in on Telecable?

8 Feb 2017

Euskaltel may be close to reaching an agreement with UK-based Zegona Communications to take over the latter’s Spanish unit, Telecable. According to local press outlet Expansion, cableco Euskaltel and Zegona have been discussing a possible agreement for some months, under which the former could combine with Telecable to create a larger regional cable provider. With the valuation of Telecable said to have long proved a sticking point in the negotiations, it is understood that the two sides are now closing in on reaching an agreement in this area. It has been suggested that a deal between Derio-based Euskaltel and Zegona would most likely see the former pay a combination of cash and shares for Telecable; such an agreement would mean Zegona becoming a stakeholder of note in Euskaltel.

Spain, Euskaltel Group (incl. R Cable and Telecable), Telecable de Asturias, Zegona