Swedish private equity firm Ratos has announced the signing of an agreement to sell 100% of shares in Danish cable operator Stofa to energy and telecoms group Syd Energi (SE) for an enterprise value of DKK1.9 billion (USD330.5 million). The sale generates a net exit gain for Ratos of approximately SEK850 million (USD127 million) and an average annual return of approximately 55%. ‘Stofa is a fine and well-invested company which we would have gladly owned for a few more years since we have not yet shown its full potential,’ commented Ratos’s CEO, Susanna Campbell, adding: ‘The many measures and investments carried out are expected to provide good earnings development in the years ahead. But since our discussions with SE, which is a very logical buyer, have resulted in them wishing to buy at a price which takes the company’s position and prospects into account, we have agreed to sell.’ The sale is subject to approval from the relevant regulatory authorities and SE’s board of representatives, and is expected to be completed by the end of 2012 at the earliest.
TeleGeography’s GlobalComms Database notes that Ratos purchased Stofa from Swedish telecoms group TeliaSonera in July 2010 for DKK1.1 billion on a cash and debt free basis. Since then, the firm says it has focused its strategy and implemented major changes in order to sharpen efficiency, customer offerings and competitiveness. Stofa is now growing its broadband customer base and selling more products to existing customers to further strengthen profitability and growth. The cableco owns a 2,100km fibre-optic cable backbone passing around 600,000 of Denmark’s 2.5 million homes, with 375,000 accessing Stofa’s cable TV service and almost 200,000 accessing broadband.