Cgates acquires Lithuanian Pay-TV and Internet provider Kava
(Thomson Reuters ONE) -
East Capital Explorer AB - listed on Nasdaq Stockholm - announces that Cgates, a
wholly owned subsidiary of East Capital Explorer's largest holding Starman, has
acquired Lithuanian regional operator Kava in a deal that will benefit Cgates
through reaching nationwide coverage within pay-TV and broadband Internet.
"Cgates' acquisition of Kava is another step in the creation of a leading pan-
Baltic cable TV and broadband Internet player, with Starman and Cgates as strong
platforms in Estonia and Lithuania. This is a business with clear scale benefits
for operators with strong product offerings and efficient networks, and we will
continue to leverage on that", says Mia Jurke, CEO of East Capital Explorer.
Kava is a growing telecommunications company with around 20,000 customers in
Lithuania. It has one of the country's most modern fibre networks, covering more
than 100,000 households across the major cities Vilnius, Klaipéda, ?iauliai and
Panevé?ys. Of these cities, Cgates' current network covers only Vilnius. Kava's
services comprise mainly broadband internet and pay-TV.
"Cgates is now becoming a nationwide operator, which is a milestone in our
strategy for the company. The acquisition of Kava will increase the company's
household coverage by 30 percent and thereby strengthen its position in the
market. Cgates is already a strong number two, but it is still a fragmented
market with many growth opportunities", adds Gert Tiivas, Chairman of Starman.
Cgates is a wholly owned subsidiary of Estonia's leading cable TV and broadband
internet provider Starman, of which East Capital Explorer owns 63 percent.
Cgates is Lithuania's second largest cable TV and broadband internet provider
with a network covering 300,000 households in 12 cities. Cgates has about
120,000 RGU's (Revenue Generating Units) within pay-TV and 70,000 within
Internet. The company's revenues in 2014 were EUR 15.8m with an EBITDA margin of
44.7 percent.
Cgates will finance the acquisition through debt. The deal will be finalized
following approval from relevant authorities in Lithuania.
Contact information
Mia Jurke, CEO, East Capital Explorer, +46 8 505 885 32
Lena Krauss, CFO and Head of Investor Relations, East Capital Explorer,
+46 73 988 44 66
Financial reporting calendar
* Interim Report, Q2 2015 - 20 Aug 2015
* Interim Report, Q3 2015 - 5 Nov 2015
About East Capital Explorer
East Capital Explorer AB (publ) is a Swedish investment company, created with
the specific aim of bringing unique investment opportunities in Eastern Europe
to a broader investor base. The company makes direct investments into private
and public companies but investments are also made through East Capital's
private equity, real estate and alternative investment funds. East Capital
Explorer's main investment theme is domestic growth and the Company targets fast
growing sectors such as Retail and Consumer goods, Financials and Real Estate.
East Capital Explorer has appointed East Capital to manage its investment
activities. East Capital Explorer is listed on Nasdaq Stockholm, Mid Cap.
Listing: Nasdaq Stockholm, Mid Cap - Ticker: ECEX - ISIN: SE0002158568 -
Reuters: ECEX.ST - Bloomberg: ECEX SS Equity
This information is disclosed in accordance with the Securities Markets Act, the
Financial Instruments Trading Act and demands made in the exchange rules. It was
released for publication at 08:00 a.m. CET on 13 July 2015.
150713 - Press Release:
http://hugin.info/143006/R/1937539/698436.pdf
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: East Capital Explorer AB via GlobeNewswire
[HUG#1937539]
Unternehmensinformation / Kurzprofil:
Datum: 13.07.2015 - 08:02 Uhr
Sprache: Deutsch
News-ID 406213
Anzahl Zeichen: 4492
contact information:
Town:
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Kategorie:
Business News
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"Cgates acquires Lithuanian Pay-TV and Internet provider Kava"
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