Private equity firms are considering buying an €800 million stake in Spanish communications group Euskaltel, it has been reported.
Earlier this year local lender Kutxabank appointed Citibank to divest 49% of Euskaltel, which provides broadband internet, TV, fixed line and mobile services in the Basque country, an autonomous region of northern Spain.
Offers for the asset are expected in mid-July and private equity firms Apax Partners, Trilantic Capital Partners and CVC Capital Partners are weighing up an €800 investment, according to a Dow Jones report citing sources close to the matter.
In 2011 Euskaltel reported a net profit of €38.4 million and earnings before interest, taxes, depreciation, and amortisation of €333.3 million.
Carlyle acquired 85% of Spanish cable operator TeleCable de Asturias earlier this year but is not expected to bid for Euskatel, while CVC already owns R, a small cable firm based in Galicia, north-west Spain.