The combined business will cater to more than 1.7 million users of cable TV, satellite TV, internet, and fixed and mobile telephony services across the countries of the former Yugoslavia, a regional market of over 20 million inhabitants.
As part of the transaction, SBB/Telemach Group raised €330m of senior financing from eight regional and international banks – BNP Paribas, Erste Group Bank, ING Bank and Unicredit as co-ordinators & MLAs, and Banca IMI, Credit Agricole CIB, Raiffeisen Bank International and Société Générale as MLAs – to refinance existing debt and fund further acquisitive growth, with the balance being available to shareholders.
Robert Knorr, partner of Mid Europa, said, “Today’s transaction marks an important step in our regional consolidation strategy in this sector as we have just formed the leading multi-country pay TV distribution platform operating in SEE.
“Mid Europa sees similar opportunities in other sectors in this part of the region where regional champions can be created through consolidation and organic growth.”
Andrej Babache, associate director of Mid Europa, added, “This transaction is the fourth landmark financing that we have arranged in SEE over the last few years and is the region’s first cross-border sponsor financing with multi-jurisdictional debt pushdown.
“Our ability to secure attractive financing terms for this complex transaction in testing market conditions is a testament to the high quality and strong performance of our two businesses and the collaborative effort of their management teams with Mid Europa”.
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