Moody's Tele Columbus unchanged

Moody's Investors Service said following the announcement by iesy Repository GmbH (iesy) and Tele Columbus Kabel Holding GmbH that they intend to merge, the agency said the ratings will likely remain unchanged.

Moody's noted that the transaction is structured as a stock-for-stock merger between two companies at the holding company level with up to €90 million cash consideration being paid as a valuation equalization so that equity participation is aligned according to EBITDA contributions.

Moody's said it remains comfortable that the ratings of both groups are adequately positioned within their rating categories at this time while noting that some uncertainties remain regarding the proposed combination.

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