Hengeler Mueller advises Tele Columbus on acquisition of PrimaCom and on planned equity raising

16. July 2015

Tele Columbus AG, the third largest German cable network operator, today announced that it has entered into an agreement to acquire PrimaCom Holding GmbH (“PrimaCom”), the fourth largest German cable network operator, for a total consideration of EUR 711 m on a cash and debt free basis from Medfort S.à r.l., PrimaCom Finance (Lux) S.à r.l. and PrimaCom Beteiligungsgesellschaft mbH & Co. KG.

The acquisition of PrimaCom will be financed through a combination of cash on balance sheet, a fully underwritten financing including both a senior and junior tranche and an equity bridge loan. The equity bridge loan and potentially a proportion of the debt financing will be taken out by an equity rights issue planned to be conducted in H2 2015. The combination of two of the leading German operators leads to a strong number three player in the German cable market bringing together 2.8 million homes connected and two well-established Housing Association customer portfolios on one platform. Closing of the transaction does not require regulatory approvals and is expected for 31 July 2015.

Hengeler Mueller is comprehensively advising Tele Columbus on the acquisition and the equity raising. The Hengeler Mueller team includes partners Achim Herfs (Capital Markets/ Corporate, Munich), Daniel Wiegand (M&A, Munich), Thomas O. Cron, Daniel M. Weiß (both Financing), Matthias Scheifele (Tax), Christian Hoefs (Labour) (all Frankfurt), counsel Anna Schwander (Capital Markets, Munich) as well as associates Jakub Lorys, Christian Lutz, Philip Goj (all M&A, Munich), Martin T. Mohr, Alexander Kredig (both Tax) and Anne Broll (Labour) (all Frankfurt). Hengeler Mueller had already advised Tele Columbus at the beginning of 2015 on the IPO including all related corporate law issues and the complete refinancing in connection with the IPO.