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Mid Europa Partners announces the sale of Czech cable TV operations to UPC Central Europe for EUR 322.5 million

10 August 2006

Mid Europa Partners, on behalf of the AIG Emerging Europe Infrastructure Fund ("EEIF") and a subset of investors in EEIF, today announced the sale of Karneval Media s.r.o. and Forcable s.r.o. to Unite Holdco III B.V., a company jointly owned by Deutsche Bank AG London and JPMorgan, for a price of EUR 322.5 million. The sale is subject to obtaining certain regulatory approvals and is expected to close latest in October 2006.

Deutsche Bank and JPMorgan have advised Mid Europa that they have entered into an agreement with Liberty Global Europe N.V., an affiliate of Liberty Global, Inc. (NASDAQ: LBTYA, LBTYB and LBTYK) for the on-sale of Karneval and Forcable to one of Liberty Global Europe N.V. affiliates. Such a purchase would be subject to obtaining appropriate regulatory approvals.

Craig Butcher, Partner of Mid Europa, said, "We are very pleased to have sold our cable business in the Czech Republic on these terms. Since our original investment in Karneval in 2003, the Company has doubled in terms of revenues and profitability. During our ownership the Company has also rolled out broadband Internet services and recently launched digital video services, thereby becoming one of the leading players in the Czech telecommunications market. We would like to thank everyone at Karneval for all they have contributed and achieved over the past several years. They have built a strong business and we wish them continued success."

Proceeds from the transaction, once completed, will facilitate the return of approximately USD 275 million to EEIF investors representing 7.7 times Mid Europa's original investment and 4.0 times its follow-on investment made in 2005.

Karneval is the second largest cable operator in the Czech Republic, offering cable television and broadband internet services to residential customers. The company recently launched an expanded digital TV lineup and is on track for the launch of telephony services in the 3rd quarter of 2006. As at 30 June 2006, Karneval had over 253,000 cable TV subscribers and over 57,000 broadband internet subscribers.

Forcable is an affiliate of Karneval, the main activity of which is the production and broadcast of local news and information channels on Karneval's network.

As part of this transaction, Baring Communications Equity (Emerging Europe), a leading communications investor in Emerging Europe, will also sell its stake in Karneval. BCEE, established in December 1997, is a fund that focuses exclusively on investing equity in the media and communications industries in Central and Eastern Europe and the CIS. Karneval was BCEE's first investment in the region.

Credit Suisse Securities (Europe) Ltd. acted as exclusive financial advisor to Mid-Europa and White & Case as its legal counsel on this transaction.

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