Com Hem acquires Boxer for a total consideration of 1.55 billion crowns, which will be paid in cash at closing. The transaction value amounts to 1.33 billion crowns, it is clear from a press release.
The acquisition is expected to bring 300 million crowns in the underlying ebitda and an annual operating free cash flow of approximately $ 200 million.
Included Boxer net cash of about 220 million (March 31 2016) is expected to Com Hem’s net debt will increase by approximately 1.33 billion.
the acquisition will be financed with a new three-year credit facility from Swedbank, 800 million and existing unutilized credit facilities.
the deal is subject to approval from the Swedish government and the Swedish Competition Authority and is expected to be completed during the second half of 2016.
Com Hem’s previously announced financial guidance for 2016 will not be affected, except that Boxer consolidated into the Group from closing.
After 2016 guidance on sales for Com Hem’s existing operations unchanged, ie a mid-single digit revenue growth on an annual basis, while Boxer’s net sales from the terrestrial digital TV network will result in a slightly slower annual revenue growth for the combined group compared with the previously communicated guidance in the medium term.
the acquisition of Boxer expected to increase underlying EBITDA in 2017 of approximately 300 million and the combined Group’s recurring EBITDA is expected to subsequently deliver a mid single-digit growth in the medium term. Investments are expected to increase slightly in the medium term compared with the current level of 1.0-1.1 billion.
Com Hem maintains debt target of 3,5-4,0x net debt / recurring EBITDA and dividend policy, including share repurchase program.
At 10:00 am, the Com Hem’s management to organize a conference call following the acquisition.
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