UK telecoms and media company Telewest has purchased local cable network Eurobell in a deal with Deutsche Telekom worth up to £280 million ($405m).
Eurobell supplies TV, internet, data and telephone services to around 181,500 subscribers in the south of England. Its purchase by Telewest represents the almost total absorption of localised cable operators.
Commented Telewest chief executive Adam Singer: “Its franchise fits perfectly with our existing network in southern England, providing us with even more customers in some of the most affluent parts of the country”.
However, Eurobell made a £5.2m loss before interest, tax, depreciation and amortisation last year. The deal will pay off its debts and leave it with £20m cash. Deutsche Telekom will receive £250m in shares plus another £30m depending on Eurobell’s revenues.
News source: Financial Times