Euskaltel acquires R Cable
DetailsJuan Fernandez Gonzalez | 25 July 2015
Spain's regional cable operator Euskaltel, which went public two weeks ago, has bought fellow cable company R Cable, consolidating its position in the Spanish telecom market.
In a note sent to the stock market authority, Comisión Nacional del Mercado de Valores, Euskaltel and R Cable were said to have reached an agreement to integrate the Galician company into the larger Basque operator. Although the final amount has not been decided, Euskaltel will pay around €1,155 million to R Cable shareholders.
Once the integration is completed, Euskaltel will own over 725,000 km of optic fibre serving telecom services as pay-TV or broadband to some 715,000 customers. Even though the amount is smaller than subscribers of Spain's largest telcos, local cable operators have a high market share in those areas in which they are available.
The deal, which has been preliminarily authorised by both boards of directors, still needs to be accepted by the shareholders, although the presidents don't expect any hiccups.
“This operation has huge strategical importance as it's a fundamental step into the consolidation of cable operators in Northern Spain, giving the resultant company better capacities and opportunities,” pointed out Euskaltel's president Alberto García Erauzkin, and R Cable's president Honorato López Isla.
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