Today the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces that its Bulgarian subsidiary Mobiltel has agreed with the seller EQT V to acquire 100% of the cable operator blizoo Bulgaria.
blizoo is the second largest fixed-line operator in Bulgaria and has an 8% share in the fixed broadband market and an 11% share in the TV market (Telekom Austria Group estimate). The company currently has approximately 373,000 subscribers, which obtain fixed voice, broadband and TV products via DOCSIS 3 technology. In total blizoo Bulgaria covers 1.3 million households.
In 2014 revenues and EBITDA amounted to EUR 47 mn and EUR 19 mn respectively. As agreed between the parties, details regarding the purchase price will not be released.
Telekom Austria Group will finance the transaction via existing cashflow. The closing is expected for Q4 2015. The transaction is subject to merger control clearance.
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