Germany’s Tele Columbus is seen as the front runner in an auction for peer Pepcom which is nearing its end and which may value the cable company at roughly 700 million euros ($773.8 million), several people familiar with the matter said.
A decision on the buyer is expected as early as September, the people said, adding that other strategic and private equity bidders also remain interested.
A Tele Columbus spokesman said: “We are a strong number three in Germany and see ourselves as a driving force of consolidation. We are always interested in assets and are looking at what comes to the market.”
The seller, buyout group Star Capital, and its advisor HSBC declined to comment. Pepcom was not available for comment.
Pepcom expects to post earnings before interest, taxes, depreciation, and amortisation (EBITDA) of 64 million euros this year and may be valued at 10-11 times that.
That would be in line with Tele Columbus’s own valuation and that of a recent deal in which Tele Columbus bought peer Primacom.
Star Capital bought Pepcom in 2010 for an undisclosed sum.