The Finnish telco Elisa is to acquire a 100% stake in Starman, the leading cable operator in the Baltic Republics, for €151 million.
At the same time, reports the Baltic Course, the two vendors – Polaris Invest, a company owned by Indrek Kuivallik, and Com Holding – will gain control of Cgates, the second largest cable operator in Lithuania.
Polaris Invest and Com Holding have become the majority owners of Starman following East Capital’s sale of its stake in the operator to Polaris Invest.
In a statement, East Capital Explorer says it has completed the sale of its 63% stake in Starman to Polaris Invest, hitherto a minority shareholder in the operator, exercising its pre-emption right. The transaction, originally announced on March 14, 2016 as a sale to Providence Equity, values Starman at an enterprise value of €208 million.
Meanwhile, Elisa’s acquisition of Starman, from its new majority owners, is subject to the approval of Estonian competition authorities, as well as other usual terms and conditions. Elisa expects the deal to close in Q1 2017.
Following its closure, Starman and CGates, which are currently part of the same group, will be separated.
