Anyone here? Nice to have my own thread. More news
Tuesday July 13, 12:28 pm Eastern Time
Company Press Release
SOURCE: United Pan-Europe Communications
UPC Consolidates its Position to Become the Second Largest Cable Company in Continental Europe
AMSTERDAM, Netherlands, July 12 /PRNewswire/ -- United Pan-Europe Communications (UPC) (Nasdaq: UPCOY - news) today announced that it has signed a definitive agreement for the acquisition of Stjarn TV, a leading Swedish cable company, from EQT Scandinavia Limited. UPC is also announcing the acquisition of Ujpest, a small Hungarian cable operator. Assuming completion of these and other recently announced acquisitions, UPC networks will pass over 8.8 million homes and reach more than 5.5 million subscribers, further strengthening the group's pan-European distribution scale and positioning the company as the second largest cable operator in continental Europe after Deutsche Telekom.
Stjarn TV is based in Stockholm with access to a network passing over 770,000 homes and 30,000 businesses. As of March 31st 1999, Stjarn TV had 240,000 cable subscribers of which 139,000 took expanded tier services. The purchase price is based upon an enterprise value of approximately $450 million less net debt outstanding on July 30 (which is estimated to be $51 million) resulting in an equity purchase price of approximately $400 million. The equity consideration will be paid 75% in cash and 25% in the form of a 1 year note which is convertible into equity or cash at UPC's option. EQT Scandinavia Limited intends to bid together with UPC for selected other Scandinavian cable assets should they become available.
The purchase price for Ujpest is $10 million. The acquisition will further strengthen UPC's Hungarian operations by adding 34,000 homes passed and 28,000 subscribers in the Budapest area.
Commenting on the acquisitions today, Mark Schneider, Chairman and CEO of UPC, said: ''Stjarn TV is an important addition to our Scandinavian strategy, complementing our existing assets in Norway and providing UPC with another country in which to launch its Priority Telecom, chello broadband and UPC TV services. In particular with over 57% personal computer penetration and 38% Internet penetration, Stockholm is a highly attractive Internet market. Stjarn TV's upgraded network will allow us to quickly launch our chello Internet service.''
Neil |
