Swedish Equity Fund Acquires Bulgaria's 2 Major Cable Operators

The Swedish investment fund EQT V (EQT) has acquired 100% of Eurocom and 70% of Cabletel, both Bulgaria's major cable operators.

The new was announced Thursday by Piotr Czapski, Partner at EQT Partners, advisor to EQT V.

The deal involves EUR 210 M of which EUR 120 M went for the acquisition while BGN 90 M are slated for future investments.

The two cable operators will continue working as separate providers until 2010 when they will merge into a new company under a new name, Istvan Polony, CEO of Eurocom said, adding the company will also include Cabletel in Macedonia. After the merger Polony will become CEO of the new company.

Ron Finley, current Cabletel shareholder, will maintain 30% minority ownership to be transferred to the new company and would make future investments.

The cable provider plans investments in the cable network in Bulgaria, new digital TV, broadband interneer and phone services and products at the level currently existing only in the US and Western Europe, Poloni is quoted as saying.

The expected profits from the new company are estimated at EUR 70 M per year.

The merger has been approved by the Bulgarian Commission for Protection of Competition. ING Bank had acted as financial advisor for the deal.

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