Unitymedia KabelBW Considers PrimaCom Berlin for Acquisition
Liberty Global Inc.’s Unitymedia KabelBW, the second-largest German cable company, is considering a bid for PrimaCom Berlin GmbH as it searches for acquisitions to expand in Internet services.
“We are looking at everything that is on the market, so also PrimaCom,” Unitymedia Chief Executive Officer Lutz Schueler said by phone. “We are an active driver of the consolidation process in the cable market, as we believe that this is necessary to be in a competitive position.”
Unitymedia plans to expand in Internet products for consumers, against competitors such as Deutsche Telekom AG (DTE) and Vodafone Group Plc. (VOD) Leipzig-based PrimaCom offers Internet, TV and phone services to more than 1 million households, mostly in eastern Germany. ING Groep NV said in April that PrimaCom may be worth about 400 million euros ($495 million).
Unitymedia acquired Kabel Baden-Wuerttemberg GmbH in May and completed the two companies’ integration in July. Market leader Kabel Deutschland Holding AG (KD8)’s acquisition of Tele Columbus Group still awaits approval by antitrust authorities.
Thomas Chojnacki, a PrimaCom spokesman, didn’t immediately respond to a message seeking comment.
Unitymedia’s second-quarter sales rose 11 percent from a year earlier to 443 million euros, the company said today in an e-mailed statement. The company gained 189,300 new customers and average revenue per client rose 9 percent to 18.63 euros as it sold bundled products integrating television, Internet and telephone services.
Adjusted Earnings before interest, taxes, depreciation and amortization rose 9 percent to 262 million euros. The net loss was 25 million euros.
“The company’s value creation is reflected in its stock price,” Schueler said. “Our goal is to leverage our capital to drive growth and at some point either buy back stocks or get new assets”.
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