Bulgaria Biggest Cable Providers to Merge
Business | May 30, 2008, FridayThe two biggest Bulgarian cable operators "Evrokom Cable" and "Cabletel' have intentions to merge, as announced by the companies Thursday.
The cable providers have submitted an application with the Commission for the Protection of Competition since the merger must be approved in order to be realized.
"According to expert valuations if the merger becomes a fact, we will have 25% paid television market share in Bulgaria", stated Petio Staikov, Chair if the Board of "Evrokom Cable".
The newly created telecommunication company will be part of the FN Cable Holding controlled by the investment fund WarburgPincus. The fund so far only owned "Evrokom Cable Management Bulgaria".
Cabletel exists since 1999 and from 2003 has been owned by the international strategic investor.
We combine the most contemporary national optic infrastructure of "Cabletel" with the wide geographic presence of "Evrokom" and its experience in providing quality service", said Dimitar Radev, Executive Director of "Cabletel".
The names of the new company and its top manager are still unknown.
Both operators develop cable and digital television, internet and phone services with similar prices. The merger does not provide for a price increase unless it would be imposed but the growing inflation.
After the merger the new company will be offering its newest service - HDTV - high definition television. Just a week ago, before the merger was announced, both cable providers presented their HDTV plans.
The merger also provides for extension of the telephone and internet services.
The cable providers have submitted an application with the Commission for the Protection of Competition since the merger must be approved in order to be realized.
"According to expert valuations if the merger becomes a fact, we will have 25% paid television market share in Bulgaria", stated Petio Staikov, Chair if the Board of "Evrokom Cable".
The newly created telecommunication company will be part of the FN Cable Holding controlled by the investment fund WarburgPincus. The fund so far only owned "Evrokom Cable Management Bulgaria".
Cabletel exists since 1999 and from 2003 has been owned by the international strategic investor.
We combine the most contemporary national optic infrastructure of "Cabletel" with the wide geographic presence of "Evrokom" and its experience in providing quality service", said Dimitar Radev, Executive Director of "Cabletel".
The names of the new company and its top manager are still unknown.
Both operators develop cable and digital television, internet and phone services with similar prices. The merger does not provide for a price increase unless it would be imposed but the growing inflation.
After the merger the new company will be offering its newest service - HDTV - high definition television. Just a week ago, before the merger was announced, both cable providers presented their HDTV plans.
The merger also provides for extension of the telephone and internet services.
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