Euskaltel mulls spring IPO
DetailsJuan Fernandez Gonzalez | 23 February 2015
Basque Country cable operator Euskaltel is considering launching on the stock market before June, to consolidate its position in the market before the forthcoming changes expected in the European and Spanish telecom sectors.
The company says it has been already selecting a team of advisers to guide the telco through the process. By going public, the operator intends to strengthen its financial position – it already tops the regional Basque market with regard to subs and infrastructure - and open opportunities for growth.
Euskaltel says it is ready to receive more investment, not only locally but internationally, although it aims to continue its commitment to its regional market.
The process of launching on the stock market is seen as a continuation of the increase in capital started in December 2012, when it sold shares to International Cable, a company owned by Trilantic Capital Partners and Investindustrial Advisors.
Euskaltel won't make a decision before June, as it has to analyse the process - which also has to be agreed by the shareholders- negotiate with potential investors, and estimate what percentage should go public.
Operating only in the Basque Country, Euskaltel has a cable network through which it delivers broadband, telephone and pay-TV packages, including Edonon, a TV everywhere and multiscreen platform. In 2014, it showed a profit of €50 million and EBITDA of €150 million.