Candover in €450m Norwegian cable deal

Norwegian cable operator UPCN is the European buyout firm’s first acquisition from the Candover 2005 fund.

London-based private equity investor Candover has signed an agreement to acquire Norwegian cable TV operator UPC Norway (UPCN) from US broadband cable operator Liberty Global for an enterprise value of €450 million ($538 million).

The transaction, the first from Candover’s €3.5 billion Candover 2005 fund which closed last month, included debt and mezzanine financing underwritten by Credit Suisse First Boston.

Candover was advised on the transaction by Castlegreen Partners and CSFB (M&A), Clifford Chance and Steenstrup Stordrange (legal), and Deloitte & Touche (financial and commercial).

“UPCN occupies an enviable market position and we intend to invest further to upgrade the network, and expand the multimedia and data communication services offered to UPCN’s customers,” said John Arney, a director at Candover, in a press release.

Oslo-based UPC Norway provides a triple play offering, combining television, telephony services and high speed broadband internet to over 350,000 homes in southern Norway. The company employs 323 people and generated €43.1 million of operating cash flow for the twelve month period ending September 30 2005.

Candover’s other European investments in the communications and media sector include the UK’s Crown Castle International, Germany’s Kabel Deutschland and ONO of Spain.