Spanish cable group Euskaltel has announced that it is acquiring fellow regional operator Telecable de Asturias for a total value of up to EUR701 million (USD768 million), comprising an enterprise value of EUR686 million and up to EUR15 million in deferred payment. The enterprise value consideration includes EUR187 million in cash, and 26.8 million shares in Euskaltel (equivalent to a 15% stake). The deal technically involves the 100% acquisition of holding company Parselaya, from UK-based Zegona Communications. The transaction remains subject to customary closing conditions.
Eamonn O’Hare, Zegona’s chairman and CEO, commented: ‘When we acquired Telecable in 2015, we identified the opportunity for substantial value creation through the combination of the three independent Northern Spanish cablecos [Telecable, Euskaltel and R Cable]. This transaction turns our vision into reality, generates very attractive returns for our shareholders and provides the opportunity for significant additional value gain … We continue to see many attractive opportunities across the broader European TMT landscape and completing this transaction will allow us to bring increased focus to Zegona’s search for the next investment where we can again apply our proven ‘Buy-Fix-Sell’ strategy.’