Liberty Global has reached an agreement to sell its DTH satellite TV operations in four Eastern European markets to M7 Group. Liberty Global will sell its DTH operations for a total enterprise value of approximately EUR 180 million, subject to customary debt and working capital adjustments at completion. Closing of the transaction is subject to regulatory approval, which is expected in the first half of 2019. The plan to sell the satellite TV operations was announced at the beginning of November.
The DTH business serves around 800,0000 customers in Hungary under the brand UPC Direct, in the Czech Republic and Slovakia under the brand FreeSAT, and in Romania under the brand FocusSat.
The proceeds from the sale are expected to be used for general corporate purposes, Liberty Global said. The agreement follows an earlier deal to sell its cable activities in Germany, Czech Republic, Hungary and Romania to Vodafone. This leaves the company with activities only in Switzerland and Poland, as well as Virgin Media in the UK and a 50 percent stake in Dutch operator VodafoneZiggo.
M7 said the deal will allow it to strengthen its business in Slovakia and Czech Republic, where it operates under the name Skylink. It also gives the company two new markets, Romania and Hungary, where it plans to roll out its hybrid OTT TV platform after the takeover. In total, the acquisition will increase the group's sales by around 30 percent. The company is already active also in the Netherlands, Belgium, Austria and Germany.
