U.K. investment firm Zegona on Monday agreed to acquire Spanish regional triple-play provider Telecable from asset manager Carlyle in a deal worth €640 million.
Telecable offers TV and MVNO services, as well as fixed broadband over cable and fibre infrastructure, in the Asturias region of north-west Spain. According to its Website, Telecable commands an 80% share of the local TV market, while its share of the fixed broadband and mobile markets stand at 48% and 14% respectively.
"There is a significant opportunity to continue the impressive development of the Telecable business. By combining the local knowledge of the team in Spain with the international experience and track record of Zegona, we have the right leadership to drive Telecable forward and deliver its full potential," said Eamonn O’Hare, CEO of Zegona, in a statement.
O’Hare served as CFO of U.K. cableco Virgin Media from September 2009 until May 2013, when he left the company following its acquisition by U.S.-based Liberty Global.
He set up Zegona earlier in 2015 with a view to capitalising on the wave of consolidation sweeping across Europe’s telco market. The company listed on London’s AIM exchange in March.
"Telecable fits the bill in terms of our reasons for launching Zegona as it is a strategically strong business with considerable opportunity for top line growth and returns. It is also a regional champion underpinned by an extensive high-speed fibre network," O’Hare said. "Our intention is to fully utilise the power of this network in order to differenti ate ourselves."
Zegona will fund the acquisition with a combination of €251 million of new equity, funds from its recent IPO, and debt.
"Zegona has the right capital structure in place to continue our company’s growth and to cement our leadership position in the Spanish telecommunications market," said Alejandro Martínez Peón, CEO of Telecable.
The transaction is expected to close in mid-August
