The Cablecom IPO has been scrapped after the Swiss cable operator was bought by Liberty Global for US$2.2bn (€1.8bn), providing an exit for Apollo Management, TowerBrook Capital Partners and Goldman Sachs Group.
According to reports, Apollo, TowerBrook and Goldman Sachs have made around €250m from the deal, representing approximately a 4x return on the original investment.
Apollo Investment Fund V, Goldman Sachs Capital Partners 2000 and TowerBrook Investors, L.P took a 51% stake in Cablecom in November 2003 when they invested a total of £294.5m through a structured debt-for-equity swap. The deal enabled Cablecom to complete a financial restructuring process reducing €2.63bn of pre-existing bank debt to €1.1bn. Cablecom’s bank lending group, which includes Royal Bank of Scotland and JP Morgan Chase, held most of the remaining equity.
The company was expected to float on the Swiss Stock Exchange in October, but just one day after publishing its share price range, which valued the company at between €1.9bn and €2.3bn, it was sold to Liberty, the largest broadband cable operator in terms of subscribers outside the US. Liberty has paid cash for 100% of Cablecom.