Mid Europa Partners Should Heed Bleak Macro Outlook

May 11 saw Central and Eastern Europe (CEE)-focused private equity group Mid Europa Partners agree to buy Slovenian cable and broadband operator UPC Telemach from US cable operator Liberty Global, in a move designed to consolidate its position in the media and telecom space in the former Yugoslavia. Though financial details were not disclosed, it had earlier been reported that the private equity firm had allocated EUR130-150mn (US$173-200mn) for the acquisition. As well as being the country's leading cable operator with 161,000 customers, UPC is also one of is largest broadband providers and boasts 25,000 telephony subscribers. Mid Europa is the largest private equity firm investing in CEE (advising and managing funds with committed capital of approximately EUR3.2bn) and has made investments in twenty-four companies located in fourteen CEE countries since 1999. Indeed, this deal comes hot on the heels its investment in the leading Serbian pay TV and broadband provider, SBB, and should position Mid Europa 'as the owner of the two preeminent pay TV platforms in the media and telecom space in the territories of the former Yugoslavia', according to Mid Europa spokesperson Robert Knorr.

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