AXA and Resource nab Latvian cable co

This transaction represents the first joint investment by AXA Private Equity and Resource Partners, which entered into a strategic partnership in May 2010. The investment was done pari passu.

Cable plays are hot in the Baltics, like the rest of Europe. Mid Europa wholly acquired Bite from TDC in 2007 for €450m. Around the same time, Blackstone courted Lattelecom, albeit unsuccessfully. The Latvian government may again look to offload Lattelecom, which would be sure to generate a lot of private equity interest again.

The investment in Baltkom comes after the business considered a merger with local rival IZZI. The merger would have been one of equals, though it fell through. Funds from the deal will be used to help fund acquisitions for Baltkom, and there is speculation that Baltkom may indeed eye up IZZI as an outright bolt-on.

Company
Founded in 1991, Baltkom is the largest cable television operator in Latvia and offers pay-TV, internet and telephony services in Riga and in other cities in the Baltic countries. It provides a range of bundled offers and services over its hybrid fibre-coax and next-generation fibre optic IP networks. It will continue to roll out its fibre technology to enhance the connection speed of its customers and provide high-speed internet and advanced IP-services throughout its network.

People
Peteris Smidre is CEO of Baltkom. Thomas Wilfling worked on the deal for AXA. Piotr Noceń is managing partner of Resource Partners.

Advisers
Equity – RLN (Legal); Ernst & Young (Financial due diligence and tax); Riga Capital (Commercial due diligence); Marsh (Insurance due diligence).

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• Topics
• Buyouts
• CEE
• Resource Partners Sp. z o.o.
• Axa Private Equity
• Latvia