Baker Capital and Nordic Capital Agree to Sell C More Group to European Media Company SBS Broadcasting
February 09 2005 - 7:17AM
PR Newswire (US)
Baker Capital and Nordic Capital Agree to Sell C More Group to
European Media Company SBS Broadcasting NEW YORK, Feb. 9
/PRNewswire/ -- Baker Capital, a private equity firm investing in
digital communications businesses, and Stockholm-based Nordic
Capital, announced today that they have signed a definitive
agreement to sell C More Group to SBS Broadcasting S.A. (Nasdaq:
SBTV; Euronext Amsterdam N.V.: SBS) through its wholly owned
subsidiary Kanal 5 Holding AB for Euro 269.6 million in cash. Funds
managed by Baker Capital and Nordic Capital each own approximately
50% of C More Group which was formed when the firms acquired Canal+
Television AB from Vivendi Universal in October 2003. C More Group
is the leading premium pay-TV provider in the Nordic region and
operates the Canal+ channels in Sweden, Norway, Finland and
Denmark. The company has over 770,000 subscribers and had revenues
of Euro 181 million in 2004. The channels are distributed by
satellite, cable, broadband and the digital terrestrial network. In
the 14 months that Baker Capital and Nordic Capital have owned the
company, the company grew subscribers by nearly 100,000,
reformatted and relaunched the channels, upgraded program
scheduling to a prime-time format, increased the number of channels
from three to five, renewed major sports rights including Premier
League and Serie A, renegotiated movie rights contracts, added new
forms of distribution including broadband and mobile, and
introduced wagering on sports matches. "We are very pleased with
the way the C More Group has developed over the term of our
ownership of the business and believe that management, under the
leadership of Marc-Antoine d'Halluin, has done an excellent job of
creating a valuable strategic asset," said Robert Manning, Partner
of Baker Capital. "We are delighted with the terms of the sale of
the company and are pleased to be delivering a strong return to our
investors." Anders Hultin, Partner of Nordic Capital, said, "The
combination of C More with SBS Broadcasting will create a
significant force in the commercial TV space in the Nordic region.
We are very pleased to see that SBS values the transformation that
we have achieved. The two companies have a very strong strategic
fit where both companies have leading market positions in their
respective market segments. For C More Group this is an excellent
opportunity in a rapidly transforming industry. The combination
will strengthen C More's already strong market position and
leverage its core capabilities." The transaction is subject to
competition authority approval and is expected to close in the
second quarter of 2005. The sellers were advised in the transaction
by Morgan Stanley (financial) and Vinge (legal). About C More Group
C More Group is the leading premium pay television provider in the
Nordic region, serving Sweden, Norway, Finland and Denmark. The
Company has long- term exclusive rights agreements with most of the
major Hollywood movie studios and several local distributors and
holds the live broadcast rights to the most popular sports leagues
including Premiere League (English football), Serie A (Italian
football), Allsvenskan (Swedish football), Tippeligan (Norwegian
football), NHL, and Elitserien (Swedish ice hockey). The Company
provides premium television programming to subscribers through
distributors for a monthly fee as well as pay-per-view services.
About SBS Broadcasting SBS Broadcasting is a European commercial
television and radio broadcasting company with operations in
Western and Central Europe. Countries where SBS currently has
broadcasting assets include: Belgium (Flanders), Denmark, Finland,
Greece, Hungary, The Netherlands, Norway, Romania and Sweden. About
Baker Capital Baker Capital, founded in 1995, is a New York based
private equity firm with $1.5 billion under management. Baker
Capital makes investments in communications-focused companies at
all stages of development. The partners of Baker Capital have
extensive private equity and operational experience allowing the
firm to provide its portfolio companies with not only capital, but
also global strategic thinking and relationships. About Nordic
Capital Nordic Capital is a leading private equity firm with a
first rate proven team and a long track record of making successful
investments in the Nordic mid-market. Since its inception in 1989,
expansion capital has been provided to more than 50 companies.
Nordic Capital has an extensive network of contacts and a deep
understanding of different industries in the Nordic market. The
firm's proven investment strategy creates value by actively
implementing a broad corporate agenda. Nordic Capital's funds have
attracted leading Nordic and international institutional investors.
DATASOURCE: Baker Capital CONTACT: Anders Hultin, Partner, of
Nordic Capital, +46-8-440-50-50, or Robert Manning, Partner, of
Baker Capital, +1-212-848-2000, or Marc-Antoine d'Halluin, CEO of C
More Group AB, +46-8-459-28-95
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