UK-based investment vehicle Zegona, owner of regional Spanish broadband operator Telecable Asturias, has confirmed that it’s in talks with Basque cable operator Euskaltel, owner of Galician cable provider R, about a possible merger. In a short statement, the company added that at this stage there can be no certainty that the discussions will lead to a transaction being concluded. The statement confirms rumours that the companies were close to reaching a merger deal that would create a powerful regional operator in the north of Spain with potential annual revenues of around EUR 750 million and an EBITDA of EUR 360 million.
One of the aims of combining the entities would be to expand into neighbouring regions in northern Spain, such as Cantabria, Navarra, La Rioja and Leon, according to a recent report.
