Stofa sold to Danish utility
Ratos is selling Stofa to the Danish energy and telecom group SE (Syd Energi) for DKK 1,900 million (€254m). The sale generates a net gain the private equity Ratos of approximately SEK 850 million. The sale is subject to approval from the relevant regulatory authorities and SE’s Board of Representatives.
Stofa is a Danish operator within broadband, cable TV and telephony which provides some 375,000 Danish households with cable TV and almost 200,000 with broadband. The services are delivered in close co-operation with 300 antenna associations throughout Denmark. Stofa also sells to end-user subscribers who are offered interactive TV services (pay TV), broadband and IP telephony.
Ratos acquired Stofa in summer 2010 and the company has since then focused its strategy and implemented major changes in order to sharpen efficiency, customer offerings and competitiveness. Stofa is now increasing the number of broadband customers and selling more products to existing customers which will further strengthen profitability and growth. Major investments have also been made in both infrastructure and marketing. In addition, part of Canal Digital’s Danish cable TV business has been acquired.
Ratos’s CEO, Susanna Campbell, comments: “Stofa is a fine and well-invested company which we would have gladly owned for a few more years since we have not yet shown its full potential. The many measures and investments carried out are expected to provide good earnings development in the years ahead. But since our discussions with SE, which is a very logical buyer, have resulted in them wishing to buy at a price which takes the company’s position and prospects into account, we have agreed to sell.”