5 - 7 March 2013: The Lancaster Hotel, London

Finance chiefs predict increased deal activity for cable sector

(Lucerne, 16 February) Europe’s cable sector looks set for increased financial deal activity, with dual-track IPO and sale processes looking likely to dominate the agenda, according to high level financial experts speaking in onstage discussion at Cable Congress 2011 today in Lucerne.

Commenting on Providence Equity Partners successful IPO of Kabel Deutschland in 2010, Marisa Drew, Co-Head of Global Markets Solutions Group at Credit Suisse, said, “Cable, in its current form, holds the most opportunity in terms of delivery speed format, products, functionality. This what investors are buying when they buy cable. I think we’ll see much more dual track IPO/sales that run side by side and we’ll see where the bids come in and ultimately a decision will be taken depending on who shows up to the party.”

Reflecting the healthy investment profile of cable companies in 2010 and a remarkable ability to successfully raise capital, Drew also pointed out that, of the €90 billion raised in the bond markets for European corporate, a massive 10% came from the cable sector, half of which was accounted for by Liberty Global.

Asked whether he believed that Kabel Deutschland’s successful IPO in 2010 would herald a wave of new public listings, Shane O’Neill, Chief Strategy Officer, Liberty Global said: “The appetite today for IPOs will be certainly stronger than 2009, but sellers have to make a judgement between the price they would get through a sale and an IPO. It’s important to
remember that when you do an IPO, it can take you 18 months to make a full exit.”

Pressed on the speculation that Liberty Global may make a large-scale acquisition in 2011, O’Neill commented in conspicuously in the conditional tense, “Ziggo would be a great synergistic fit — if it came onto the market and, again, if it came at the right price. But those are two very big ifs…I can confirm that we have not held talks.”

John Hahn, Managing Director and Head of European Investment at Providence Equity Partners, who successfully listed Kabel Deutschland in 2010, commented on the offering: “We were able to offer investors a combination of stability plus growth. We had a robust book of demand but also a disciplined set of buyers: the power was with investors not us. I think the industry has come to be re-appreciated by equity investors for our stability plus growth.”

Referring to Com Hem, Ziggo, ONO, Kabel Deutschland and KBW, Marisa Drew said she thought the prospects for an increase in M&A activity in 2011 were good: “Definitely. We have a liquid market, willing buyers and attractive prices.”

Asked whether he thought cable would continue to attract investors for its growth potential, Hahn also agreed. “We may become a more yield-oriented security in the next 4-5 years but we will have to see. This discussion has been going around for ages. We’ve been on a growth run for 30 years.”

For more information, please contact:
Gregg Svingen
Director of Communications
M: +32 476 490 603
E: [email protected]

About Cable Europe
Cable Europe is a trade association that groups all leading broadband cable TV operators and their national associations throughout Europe. The aim of Cable Europe is to promote and defend the industry’s policies and business interests at European and international levels, and to foster cooperation among its members. The European cable TV industry services more than 94 million broadband, TV and telephony subscriptions throughout the EU 27 (around 70 million households).
www.cable-europe.eu

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