Zegona agrees to sell Telecable | Cable | News | Rapid TV News
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Spanish regional cableco Euskaltel has increased its footprint in the telecom market by acquiring 100% of Asturias’ Telecable.

telecable euskaltel r 17 may 2017As announced through a note to CNMV, the Spanish stock market authority, the British group Zegona, the current owner of Telecable, has agreed to sell the cable company for €686 million. Depending on Telecable’s future performance, Euskaltel may also have to pay up to another €15 million.

The deal, which is still pending approval, is expected to be concluded by the Q3 2017.

If Telecable’s integration goes ahead under the announced terms, Zegona will keep a 15% share of Euskaltel’s capital, becoming a key member of the telco’s shareholders, as the telco’s main owner, Kutxabank, will see a decrease from the current 25.58% to around 21% of shares.

However, according to the financial newspaper Expansión, Zegona is expected to gradually sell its Euskaltel shares.

Telecable’s acquisition has been a long-term goal for Euskaltel since the Basque telco bought out the Galician operator R in October 2015.

Both local operators, which own pay-TV, broadband and mobile operations and an extensive fibre and cable network, bring growth opportunities for Euskaltel, which is the leader of a highly mature market in which there is not much room for growth.