Jul
24
The consolidation of the Spanish telecommunications market shows no sign of abating with regional cable operator Euskaltel, operating in the Basque Country, agreeing to purchase rival cable provider R, operating in Galicia, for EUR 1.16 billion. In a statement outlining the terms of the deal, Euskaltel said it offered R’s shareholders cash and new shares valued at 10.9 times the company’s EBITDA. The deal means CVC Capital Partners, which had a 70 percent stake in R, will become one of Euskaltel’s leading shareholders. The remaining 30 percent of R was in the hands of Galician bank Abanca.
Euskaltel said the combined entity will have over 715,000 residential and business customers and that the companies will continue to operate under their original brands in their respective regions in northern Spain. However, the Euskaltel-R group will “significantly increase its relevance in the Spanish market,” said Euskaltel, with revenues of EUR 570 million and an EBITDA of EUR 265 million. “The operation gives the combined entity greater strength, efficiency and growth capacity through the creation of a leading operator in northern Spain,” said Euskaltel, adding that the deal is still subject to due diligence and approval by competition authorities.
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