German cable operator Tele Columbus agreed with Vodafone Kabel Deutschland to acquire its stake in regional cable company KMS.
Based on the agreement, Pepcom Süd, a fully owned subsidiary of Tele Columbus and already majority shareholder in KMS, takes over the remaining 30.22% in Kabelfernsehen München Servicenter GmbH & Co. KG and 24% in Kabelfernsehen München ServiCenter Gesellschaft mit beschränkter Haftung – Beteiligungsgesellschaft. Following this transaction, Tele Columbus is now the sole owner of the two companies.
The purchase price amounts to €40 million upon closure of the contract and an additional €12 million in Q1 2018, representing a multiple of 5.22x in relation to the normalised EBITDA of the financial year 2016.
As part of the agreement, Tele Columbus will handover to Vodafone Kabel Deutschland around 15.000 homes over the next 12 months which could not be upgraded for two-way communication through its own network at economically attractive terms. These households are currently already supplied with cable TV signals by Vodafone Kabel Deutschland.
KMS serves around 455.000 connected homes in the Munich region and southern Germany with cable TV, broadband internet and fixed-line telephony.
“The acquisition of the remaining KMS shares from Vodafone Kabel Deutschland gives us full control over both entities and will allow us a faster rollout of our entire product range in the Munich area”, said Frank Posnanski, Chief Financial Officer of Tele Columbus.
