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Swedish cable operator enters the SDU market and expects to reach additional 800,000 SDUs via fiber. SDUs via fibre (homes passed) over the coming years
June 8, 2016
STOCKHOLM -- Com Hem Holding AB (publ) with subsidiaries (“Com Hem”) has following successful trials started its expansion into the single dwelling unit (“SDU”) market in Sweden. To boost this expansion Com Hem has entered into an agreement to acquire Boxer TVAccess AB (“Boxer”), the pay TV operator in the digital terrestrial television (“DTT”) network in Sweden, a wholly-owned subsidiary of Teracom Boxer Group AB (“Teracom”) for an enterprise value of SEK 1,330m (the “Enterprise Value”). Com Hem’s trials in the SDU market have been successful. A significant rollout to fibrebased networks beyond the coax footprint has begun and is estimated to add 800,000 SDU households via fibre (homes passed) over the coming years. The Com Hem SDU expansion programme is done by a combination of techniques including unbundling fibre, using third party open LAN networks and to a smaller extent building out Com Hem’s own fibre coax network. Our ambition is that the SDU market will become the next major growth pillar for Com Hem turning the company into a true national operator in broadband- and TV-services.
Boxer is the pay TV operator in the DTT network in Sweden with approximately 500,000 subscribers predominantly in the SDU market. The fibre expansion in the SDU market has over the last years put pressure on Boxer’s customer base. The Com Hem SDU expansion programme will enable Boxer to sell market leading bundled broadband- and TV-services to its customer base. The acquisition of Boxer thereby represents a highly attractive opportunity for Com Hem to accelerate its reach in the SDU market. The Boxer brand will be included in the acquisition and continue to operate as part of the Com Hem Group.
The total consideration for the Boxer transaction is SEK 1,550m (based on balance sheet as per March 31, 2016), payable in cash at closing. Including Boxer’s net cash position of approximately SEK 220m (as per March 31, 2016), the acquisition is expected to impact Com Hem’s net debt position by approximately SEK 1,330m. The acquisition will be financed by a new three year SEK 800m credit facility with Swedbank AB (publ) and existing unutilised credit facilities.
Com Hem AB
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