Moody’s eyes Tele Columbus for raise

Moody’s Investors Service said it placed its ratings for Tele Columbus AG, including its B3 instrument ratings, on review for upgrade. The outlook was stable.

The review follows the announcement Kublai GmbH launched a public takeover offer for Tele Columbus. If the takeover is successful, the buyer plans to carry out a €475 million capital increase, fully guaranteed by the buyer. Tele Columbus intends to use the capital increase proceeds to reduce debt and to fund capital expenditures. The bidder has also agreed to make available additional equity capital of up to €75 million.

“We are placing Tele Columbus’ ratings on review for upgrade because the announced takeover and subsequent capital increase will strengthen its balance sheet and allow it to raise funds to facilitate the modernization of its network,” said Agustin Alberti, a Moody’s vice president and lead analyst for Tele Columbus.

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