Essent Kabelcom, Casema and Multikabel strive to become one cable company by 2007

Essent is selling Essent Kabelcom to Cinven, a European private equity investor, and Warburg Pincus, a globally operating private equity firm. Warburg Pincus and Cinven have also agreed in principle to purchase Casema. Moreover, Warburg Pincus owns Multikabel. The sale fits Essent's strategy of concentrating on energy and upscales Essent Kabelcom to the size to grow comfortably in the telecomm and cable industry, with its steadily contracting number of players. Details of the principle agreement have been passed to the Central Works Council for its recommendation. The final agreement will be subject to approval by the Netherlands Competition Authority.

Essent reaches principle agreement with Cinven and Warburg Pincus on sale of cable activities for EUR 2.6 billion

On 2 June 2006 Essent began the sales process for a business combination to fold its cable activities into a larger unit. A limited number of parties were asked to tender for the Essent Kabelcom business unit. As well as an attractive price, the joint bid of Cinven and Warburg Pincus offers the best opportunities for realising the upscaling ambition and a further strategic and commercial consolidation of Essent Kabelcom's position on the market for radio, TV, Internet and telephony. The conditions that Essent has attached to the social aspects, including employment and the related terms and conditions, have also been met.

The combination of Essent Kabelcom, Casema and Multikabel will serve 3.3 million customers, making it a provider of cable services to a substantial part of the Dutch market. Essent views with confidence the future of Essent Kabelcom as part of the new combined company. It will enable Essent Kabelcom to compete satisfactorily throughout the country and to stay in the lead regarding technological change and product innovation.

For the sale of Essent Kabelcom, Essent N.V. engaged the services of Citigroup, Freshfields Bruckhaus Deringer and Ernst & Young as advisors.

3 August 2006

Published: 03 August 2006