Two days after taking a 4.5% stake in Deutsche Telekom for $3.3 billion, U.S. investment group Blackstone has agreed to sell its regional cable company Kabel Baden-Wurttemberg to private equity firm EQT Partners for a reported $1.6 billion.
EQT and Kabel BW refused to confirm the price, with Kabel BW chief exec Georg Hofer calling it “a little exaggerated.”
Hofer welcomed the acquisition by EQT, which intends to develop the company into a fully integrated group offering convergence services.
“We want to support Kabel BW’s strategy and invest in growth, new technology and in strengthening its market leadership,” said Marcus Brennecke, head of EQT Germany.
Kabel BW, which reaches 2.3 million households, is the smallest of Germany’s three major cable operators, after Kabel Deutschland and Unity Media. But it has established itself as a leader in digital home services including Internet and telephony.