Tele Columbus needs to renew funding for the company. The second largest cable operator in Germany announced on August 18, 2020. The main shareholders are United Internet and Rocket Internet.
United Internet owns nearly 29 percent of Tele Columbus, in which Rocket Internet also acquired around 12 percent in October. “We are currently working with consultants to create the long-term funding structure needed to fund our growth plan and create a sustainable capital structure”, said the new company boss Daniel Ritz, who has been in office since the beginning of February. Since several options are being examined, a comprehensive financing update cannot be presented until the fourth quarter of 2020.
According to a report by Wirtschaftswoche, United Internet has hired Merrill Lynch’s financial advisors to look into future options for Tele Columbus. This would also make it possible to split up the company again.
“In the last few weeks we have developed our ‘Fiber Champion’ strategy, which focuses on three pillars: FTTB / H expansion, increased usage and long-term customer relationships”Ritz explained.
Tele Columbus reported on a “structurally challenging environment”.
The loss fell in the reporting period from 10.04 million euros to 4.88 million euros. Sales fell from 120.1 billion euros to 118.5 billion euros.