Kohlberg Kravis Roberts has agreed to acquire East European cable operator SBB/Telemach in a deal valued at around EUR1 billion.
According to reports, KKR beat competition from Liberty Global and private equity rivals Providence and Cinven to buy Belgrade-based SBB/Telemach from another private equity company, Mid Europa, who acquired SBB in 2007.
Regional operator SBB/Telemach Group operates in the former Yugoslab markets of Serbia, Slovenia, Bosnia, Croatia, Montenegro and Macedonia and has around 1.7 million cable and satellite TV, broadband, fixed and mobile customers. These markets have low broadband payTV and broadband penetration with high growth potential.
“This is our first direct investment in Southern Eastern Europe. It adds to our investments in more than 40 European companies across 12 countries and it is a sign of our confidence in the prospects of SBB/Telemach Group, led by Dragan [Šolak, Founder and Executive Chairman of the SBB-Telemach Group] and his talented team, and in the region,” said KKR's co-founder and co-CEO Henry Kravis.
The transaction is subject to customary approvals and is expected to close around year-end 2013.
KKR buys SBB for EUR1bn