Spanish cable group Euskaltel’s shareholders have approved the acquisition of fellow regional operator Telecable de Asturias from UK-based Zegona Communications at the ordinary general shareholders’ meeting. The transaction remains subject to customary closing conditions. The deal was agreed upon last month, and technically involves the 100% acquisition of holding company Parselaya for an enterprise value of EUR686 million (USD768 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).
Euskaltel Group CEO Francisco Arteche said: ‘Meeting the objective set by Euskaltel following its flotation on the stock market of becoming the leading convergent operator in the north of Spain. Telecable’s contribution to the new Group will represent around 15% of its business. This acquisition is a completely strategic move for Euskaltel, due to the complementary nature of both assets and the high level of synergies expected once the transaction is completed.’