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Tele Columbus looks to capital increase to fund further acquisitions

Tele Columbus zentrale_hannover_bigGerman number three cable operator Tele Columbus is to raise €240 million via a capital increase to help fund further acquisitions following its deal to purchase number four operator Primacom.

Tele Columbus will put its plan to raise the cash to an extraordinary shareholders meeting on September 14.

Tele Columbus needs additional capital to fund its acquisition plans. Existing capital has been earmarked to repay a bridge loan that forms part of the financing arrangement for the acquisition of Primacom and will be due for repayment on December 15, limiting the company’s room to act.

Tele Columbus has not named any specific acquisition targets. The company said that if the opportunity to acquire additional companies did not arise, the new capital would be available either for future acquisitions or to repay existing debt.

“The capital increase enables the company to continue its growth path in Europe’s most attractive cable market and to strengthen its position as the number three player in the German cable market. We are confident that we will be able to make use of such additional potential in a way which creates value for both the company and its shareholders,” said CEO Ronny Verhelst.