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East Capital Explorer takes Starman stake

Swedish-based investment firm East Capital Explorer has agreed to buy a majority stake in Estonian cable TV, broadband, and phone services provider Starman.

East Capital Explorer will invest approximately €24 million to acquire 51% of the company based on a total enterprise value of €107 million, it said. The remaining 49% will be held by Starman’s founders, Peeter Kern and Indrek Kuivallik.

East Capital Explorer will acquire the shares from the existing owners, a consortium led by Bancroft Private Equity. The founders will increase their current equity stakes in Starman by investing an extra €5 million on the same terms as East Capital Explorer.

Gert Tiivas, head of Baltic private equity for East Capital, said: “Starman is a well-managed company with a track record of solid financial performance and high profitability. We see further opportunities for growth in this area in the Baltics and Starman is well-positioned to take advantage of this growth.”

The transaction is subject to approval from the Estonian competition authorities, and is expected to close during the second quarter of 2013.