Interest in Primacom: Deutsche Telekom switched to cable network business


As the German press agency learned from industry circles on Tuesday, the company is considering a takeover of the cable operator Primacom. Previously, the "Financial Times Germany" had reported that the Bonn giant is interested in the cable network operator. According to this, at least four investors should have submitted bids for Primacom at the end of July. The Telekom did not want to comment on the report.

Other bidders include investor Star Capital Partners, DTK Deutsche Telekabel and another unknown financial investor. Star Capital already owns German cable network operator Pepcom. In the spring, Deutsche Telekom had also turned a blind eye to the provider Telecolumbus.

The owners of Primacom are the financial investors Alcentra Europe, Avenue Capital, Tennenbaum Capital Partners and Bank ING. The former creditors had taken over the company after a power struggle with the then owners in 2010.

Deutsche Telekom had to sell its cable network more than ten years ago for competitive reasons. In the following years, the acquirers modernized the networks and built them into an efficient infrastructure. With low-cost offers for telephony, fast Internet and TV services (triple play), cable operators are attracting more and more customers to their network.

According to the newspaper report, the telecom has bid between 250 million and 280 million euros for Primacom. The last known business figures of Primacom date back to 2010. In the year the company had generated revenues of 108 million euros and earnings before interest, taxes and depreciation of almost 28 million euros. Primacom is one of the smaller providers in the industry with one million households, mainly in the new federal states and Berlin. Market leaders are Kabel Deutschland and Unitymedia KabelBW. (Dpa / tc)