This information is disclosed in accordance with the Securities Markets Act, the Financial Instruments Trading Act or demands made in the exchange rules.
Ratos's subsidiary Stofa A/S has acquired the Danish cable TV activities of Canal Digital for an Enterprise Value of approximately DKK 100m (SEK 120m) . The seller is Canal Digital AS, owned by Telenor. In connection with the acquisition, Ratos is contributing capital corresponding to the entire Enterprise Value.
Stofa is a Danish triple-play operator (broadband, cable TV and telephony) that provides approximately 350,000 households with cable TV and 140,000 of these also with broadband. The services are delivered in close co-operation with 300 antenna associations throughout Denmark. Stofa has 450 employees and had sales of DKK 1,024m in 2009, with an operating profit (EBITA) of DKK 92m. The head offices are in Horsens (Jutland), Denmark.
Stofa's acquisition pertains only to Canal Digital's Danish cable TV business. In 2009 this business had 42 employees and sales of DKK 383m. Although Canal Digital offers triple-play services, a large share of its business is agency-based, i.e., offering channel packages to antenna associations in Denmark, which together have approximately 633,000 connected households. Canal Digital currently has approximately 56,000 subscribers (cable TV, broadband and telephony). As a part of the transaction, Stofa has entered into an agreement regarding distribution of the TV channel Canal 9 to its customers.
"Through this acquisition, Stofa strengthens its role as the second largest cable TV operator in Denmark, which will pave the way for both a stronger relationship with the programme companies and a broader offering to customers. The customer base will be significantly strengthened, which will give us an opportunity to gain a larger share of the market with Stofa's product offering," comments Ratos CEO Arne Karlsson.
In connection with the acquisition, Ratos is contributing capital corresponding to the entire Enterprise Value. The acquisition is contingent upon approval from the competition authorities and is expected to be completed during the first quarter of 2011.
For further information, please contact:
Arne Karlsson, CEO, +46 70 379 79 79
Emma Rheborg, Head of Corporate Communications and IR, +46 733 80 22 63