In a further consolidation of the Spanish cable market, Basque Country-based operator Euskaltel has bought Galician R Cable for €1.155 billion to create a large regional cable group in the north of Spain – with the companies retaining their own brands – with a network of 725,000 km and over 715,000 subscribers.
Euskaltel has offered shareholders in R Cable a mainly cash deal with the rest in new shares, the company said in a statement.
The deal is subject to due diligence until mid October and regulatory approval.
This is the latest concentration move in the market following takeover deals with France’s Orange buying telecoms group Jazztel in September and Vodafone buying cable operator Ono in March becoming the biggest cable player.
Further consolidation moves are expected in the future, with another independent cable company on the line: Telecable, a cable operator in the northern region of Asturias, owned by US private equity fund Carlyle.
Euskaltel is also seeking a merger with Telecable. Combined the three companies (Euskaltel, R and Telecable) would reach 340,000 TV subscribers with Euskaltel having over 110,000, R around 100,000 and Telecable 130,000.
Euskaltel is the leading broadband and pay-TV provider in the Basque Country, in the north of Spain, where its network reaches 85 per cent of homes. The company posted €321.2 million in revenue last year.
Euskaltel is the leading broadband and pay TV provider in the Basque Country, in the north of Spain, where its network reaches 85 per cent of homes. The company posted €321.2 million in revenue last year.