German cable operator Primacom has announced that it has ended discussions over a potential sale of the business.
Primacom began formal discussions in Spring 2012 after receiving a number of unsolicited expressions of interest. The company conducted negotiations with several interested parties over the last few months and a number of offers were received during the process. However, none met Primacom’s valuation criteria and negotiations have therefore been terminated.
The parties believed to be interested in buying the cabler included Liberty Global (owners of Unitymedia Kabel BW), Kabel Deutschland and Deutsche Telekom.
Joachim Grendel, CEO of Primacom, said in a statement: “Throughout these discussions Primacom has continued to grow its subscriber base in line with its fully funded growth plan, and the conclusion of this process has no impact on the Group’s operations or its strategy to further invest and serve its customers. Primacom has re-established significant momentum over the last twelve months and the business is firmly back on a growth trajectory.”
Harald Stöber, chairman of Primacom’s parent company Medfort, Luxembourg, added: “The decision to enter sale discussions was made on an opportunistic basis in light of third-party interest. Ultimately, none of the offers were able to meet the strict valuation criteria that were in place. The process is now at an end and Primacom, backed by its shareholders, will continue to implement its successful growth strategy. Primacom is an excellent asset and, with more than enough liquidity, the Company has the resources in place to continue to invest to drive further growth in subscribers over the next three years and beyond.”