Euskaltel considers IPO

Spanish local cable operator Euskaltel is considering a float on the Stock Market to raise funds for growth.

The company, with operations in the Basque Country, has hired Rothschild Bank to assess the process with a final decision to be made in June. Euskaltel, partly owned by private equity funds Trilantic and Invesindustrial, is seeking a listing as International investors are increasingly keen to invest in Spanish companies at a time when the economy is recovering.

It is estimated that at least 25 per cent of the share capital of the company would float out of the 48.1 per cent controlled by the equity funds. Regional bank Kutxabank owns 49.9 per cent and Spanish utility Iberdrola has a remaining 2 per cent.

The listing would value the company at between €400 million and €500 million. Euskaltel is the main cable operator in the Basque Country, in the north of Spain, with a market share of over 45 per cent in broadband and over 110,000 pay TV subscribers. In 2013, the company declared a net profit of €50.1 million, up 4.1 per cent.

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