CVC takes 35% stake in R

Francinia Protti-Alvarez
14 April 2010

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CVC Capital Partners has acquired, a 35% of Spanish cable operator R, valuing the company at around €675m.

The deal involves an equity injection and the strengthening of the company’s financial structure. Following the transaction, Caixanova retains its position as reference shareholder with a 65% in the business.

CVC can exercise the option of acquiring an up to 70% stake in the business in the months to come.

R began operations in 2000 with the objective of creating a new and modern telecommunications infrastructure in Galicia based on fiber optics. With 140,000 km of optic fiber deployed in more than 74 communities in Galicia, R has established itself as a major operator in just 10 years.

The company provides fixed and mobile telephony, internet, payment TV and advanced telecommunications services to enterprises, currently reaching more than 250,000 customers throughout Galicia. In 2009 the company recorded a €209.4m turnover, with €93m EBITDA and net earnings of €23m.