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Sale agreed for DT’s cable business

The full sale of Deutsche Telekom’s six regional cable television units to Liberty Media and UK-based private equity firm Klesch & Co has been agreed.

Deutsche Telekom has confirmed the full sale of six of its nine regional cable television units to Liberty Media, the US media company. Liberty Media, which is part of AT&T, has reached an agreement to grant Klesch & Co an option to acquire up to 24.9 per cent interest in the cable activities.

In February Deutsche Telekom had initially signed a letter of intent to sell just 55 per cent with an option for another 20 per cent, to Liberty Media and Klesch & Co. The sale of the six cable TV regions, which connect to more than 10 million homes, underlines Telekom's intention to focus on its core business activities.

Deutsche Telekom’s spokesman Hans Ehnert said: “We are focusing our activities on four strategic pillars – mobile communications, online communications, fixed line communications and system solutions for multinational customers.”

Gary Klesch, chairman of Klesch & Co told PEO that a lot of the detail still remains to be worked out. He plans to form an investor base, which will include private equity groups, following the closing of the deal between Liberty and Deutsche Telekom next month.