Tele Columbus Plans to Raise at Least $381 Million in Cable IPOCornelius Rahn
Tele Columbus AG, Germany’s third-largest cable operator, plans to raise at least 300 million euros ($381 million) in an initial public offering to take advantage of demand for fast Internet connections at home.
The Berlin-based company plans to list on the Frankfurt stock exchange by the end of the year, according to a statement today. The funds from the new shares will be used to cut debt and finance growth, said Tele Columbus, which is owned by creditors after restructuring its loans. Existing shareholders also plan to sell stock as part of the offering.
The company seeks to raise funds as rivals including Vodafone Group Plc and Liberty Global Plc are expanding their fixed-line networks. Tele Columbus’s attempt to sell itself to larger Kabel Deutschland Holding AG was stymied last year as regulators opposed consolidation in Germany’s cable market.
“This puts us in an excellent position to further grow our business over the coming years in one of Europe’s most attractive cable markets,” Chief Executive Officer Ronny Verhelst said in the statement.