Stofa sold to energy group

Danish cable and pay TV operator Stofa has been sold to energy and telecom group Syd Energi (SE) in a deal worth DKK1.9 billion (€254 million).

Stofa supplies around 375,000 Danish households with cable TV services and almost 200,000 with broadband. The services are delivered in close co-operation with 300 antenna associations throughout Denmark. Stofa also sells to end-user subscribers who are offered pay TV, broadband and IP telephony services.

Stofa’s owner Ratos acquired the operator in 2010 and has agreed a deal to sell all its shares to SE for DKK1 billion with an enterprise value of DKK991 million.

Ratos pointed out that Stofa’s sales have risen from DKK1billion in 2009 to DKK1.15 billion in 2011. During the same period operating profit has risen from DKK92 million to DKK146 million. This year Stofa has increased the number of broadband customers by more than 10%.

Ratos’s CEO, Susanna Campbell, said: “Stofa is a fine and well-invested company which we would have gladly owned for a few more years since we have not yet shown its full potential. The many measures and investments carried out are expected to provide good earnings development in the years ahead. But since our discussions with SE, which is a very logical buyer, have resulted in them wishing to buy at a price which takes the company’s position and prospects into account, we have agreed to sell.”