The owners of cable firm NTL are to sell its Irish division in a deal that could be worth €150-€200 million, writes Jamie Smyth, Technology Reporter. The sale should be concluded by April and at least one Irish consortium is in the running to buy it.
International investment bank Goldman Sachs is advising NTL on the sale and has invited several prospective Irish and international bidders to consider the company.
NTL Ireland is the State's biggest cable supplier with more than 340,000 customers in Dublin, Galway and Waterford. Its US owner, NTL Group, was rescued from bankruptcy last year by a consortium of banks and hedge funds.
The Irish Times has learned that a consortium of wealthy Irish investors is preparing a bid and has approached NTL. The group is being advised by financial advisers IBI Corporate Finance.
International cable firm UGC Europe Communications, owned by US media figure Mr John Malone, is also believed to be preparing a bid. Last month it bought NTL's Irish rival, Chorus Communications.
A spokesman for UGC said yesterday that as the largest European cable firm it would look at opportunities as they arose.
He said the firm did not comment on specific cases.
NTL Ireland is likely to be sold for a fraction of the €680 million purchase price that NTL paid for the company back in 1999 during the hype of the dotcom bubble.
UGC paid a multiple of approximately 6.9 times estimated 2004 earnings before interest, tax, depreciation and amortisation for Chorus. Using a similar formula it is estimated that NTL could sell for up to €200 million.
But any prospective buyers of NTL Ireland are likely to have to invest tens of millions of euro to upgrade its network to supply broadband internet technology.