PrimaCom seeks quick sale
Jörn Krieger ©RapidTVNews | 26-05-2012
The owners of German cable operator PrimaCom are seeking to accomplish a quick sale of the company with documents already sent to a small group of possible bidders.
Non-binding bids can be placed before the beginning of the summer holiday period, and according to reports from the Reuters news agency, interested parties include Germany's second largest cable operator Unitymedia (owned by Liberty Global) and national telco Deutsche Telekom, one of the insiders told Reuters. Neither company has commented on the reports.
Market leader Kabel Deutschland which recently announced the take-over of smaller player Tele Columbus will not submit a bid. "We will not participate in the sale process of PrimaCom," CEO Adrian von Hammerstein told the agency. The company possibly fears that a second acquisition could reduce its chances of gaining approval for the Tele Columbus purchase by federal cartel office Bundeskartellamt.
PrimaCom's owners want to obtain at least €400 million through the sale, another insider told the agency. The company is currently indebted with €350 million. With around one million households served - mainly in eastern Germany - PrimaCom is Germany's fifth largest cable operator.
In April 2012 it became known that PrimaCom's owners are looking for a purchaser of the company.