Delta to sell ZeelandNet to EQT Infrastructure

Tuesday 6 December 2016 | 16:04 CET | News
Update: 6 December 2016 | 16:33 CET
Dutch utilities group Delta has agreed to sell its retail energy and cable telecom activities to EQT Infrastructure for EUR 488 million. The sale is part of the company's earlier announced strategic review and restructuring and follows a legal requirement in the Netherlands for energy companies to separate their production activities from distribution and commercial services. 

Delta offers TV, broadband and telephony services over a cable network in the southwest province of Zeeland, operating also under the names Delta Comfort and Zeelandnet. It serves over 140,000 households and businesses with a network that passes around 90 percent of homes in the province. It generated revenues of EUR 214 million last year and employs 370 people. At the end of the third quarter of 2016 the company served 139,000 tv subscribers (137,000 digital), 100,500 broadband subscribers and 57,500 telephony subscribers.

Sweden-based EQT, which has invested extensively in the European utilities market, said it plans "to develop further Delta's unique multi-utility approach, invest in its network to provide the most advanced solutions to residential and business clients and therefore strengthen its position as the preferred telecommunication infrastructure access provider in Zeeland". The growth of the company will be supported by an industrial board of directors who will have significant telecom and energy expertise. It will remain based in Zeeland, with rights to the Zeelandnet and Delta names.

The sale still requires approval from Delta shareholders at a meeting planned for 23 February 2017, as well as clearance from regulator ACM and the works council. EQT said it expects the deal to close in Q1 2017. 

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