For the first time in Slovenia, Telemach with the BIGGEST package represents unlimited data transfer

We are proud that today we can offer the users of the only real mobile package in the Slovenian market, which brings an unlimited amount of data transmission.

Telemach has again moved the boundaries of mobile communication and entered 2019 with the upgrade of the MOST mobile package, which now provides unlimited data transmission in Slovenia in addition to unlimited calls, SMS and UNIFI network. At Telemach, we keep our promises and improve our packages for new and existing users alike. Best Bundled User Experience MAXIMUM will now be $ 2 more favorable than before; monthly subscription is € 20 for Telemach fixed line users and € 22 for everyone else. The offer in the package is mostly applicable to business users.

Telemach continues to invest in the GIGA network

As the leading provider of digital services in Southeastern Europe, United Group continues to be at the forefront of the digital transformation of the region with the construction of the next generation GIGA network.

Today, through our existing infrastructure, we can already provide Internet users with up to 1 Gbps Internet connection speeds while continuing to upgrade our hybrid optical coax network. With the further development of Docsis 3.1 technology, Telemach will be able to provide Internet access at up to 10 Gbps on the same network in the future.

Telemach is ready to offer an additional 1 Gbps packet in certain parts of the network from October 18th. Further investments will ensure that by the end of 2019, Telemach will have the largest new generation network with the largest number of households in Slovenia with access to GIGA speed.

From the outset, United Group investments have been focused on building a network of the future. As a result, it now manages the largest new generation network in the region, ready to support all future needs of its users.

KKR buys SBB for EUR1bn

Kohlberg Kravis Roberts has agreed to acquire East European cable operator SBB/Telemach in a deal valued at around EUR1 billion.

According to reports, KKR beat competition from Liberty Global and private equity rivals Providence and Cinven to buy Belgrade-based SBB/Telemach from another private equity company, Mid Europa, who acquired SBB in 2007.

Regional operator SBB/Telemach Group operates in the former Yugoslab markets of Serbia, Slovenia, Bosnia, Croatia, Montenegro and Macedonia and has around 1.7 million cable and satellite TV, broadband, fixed and mobile customers. These markets have low broadband payTV and broadband penetration with high growth potential.

“This is our first direct investment in Southern Eastern Europe. It adds to our investments in more than 40 European companies across 12 countries and it is a sign of our confidence in the prospects of SBB/Telemach Group, led by Dragan [Šolak, Founder and Executive Chairman of the SBB-Telemach Group] and his talented team, and in the region,” said KKR's co-founder and co-CEO Henry Kravis.

The transaction is subject to customary approvals and is expected to close around year-end 2013.

Slovenia’s Telemach joins Mid Europa’s United Group

Slovenian cableco Telemach has joined the United Group, which includes a number of telecoms operators across eastern Europe. The United Group, which is majority owned by Mid Europa Partners (MEP) and the European Bank for Reconstruction and Development (EBRD), already includes Serbia Broadband (SBB), Telemach Bosnia & Herzegovina, DTH platform Total TV (which covers Slovenia, Croatia, Bosnia & Herzegovina, Serbia, Montenegro and Macedonia) and a further 15 small operators, including Absolut OK, KDS NS, Jet TV, Beogrid, Telekabel, VI-NET, and ArtNet. Commenting on the development, Telemach director Marko Ster said that sharing best practice and seeking synergies would help improve services.

According to the United Group, Telemach customers will be able to see the first benefits from 1 May, when the group’s operators will start to offer free calls between Slovenia, Serbia and Bosnia & Herzegovina. MEP has been active in the region since 2007, initially through its investment in SBB and later through its acquisition of Telemach, which was previously owned by Liberty Global Inc (LGI). The United Group currently claims 1.65 million revenue generating units (RGUs) and presides over a unique infrastructure that covers a large part of Slovenia, Serbia and Bosnia & Herzegovina and includes over 10,000km of fibre-optic networks, connecting to Belgrade, Zagreb, Ljubljana and Sarajevo. In the twelve months ended 31 December 2012 the United Group generated revenues of EUR180 million (USD234.4 million), with capital expenditure exceeding EUR50 million.

EMP Europe sells Telemach to UGC

UnitedGlobalCom, Inc. ("UGC") (Nasdaq: UCOMA) today announced that, through one of its affiliates, it reached an agreement with EMP Europe, a leading private equity firm dedicated to Central and Eastern Europe, and several other Slovenian shareholders to acquire their interests in Telemach d.o.o. ("Telemach").

Telemach is the largest broadband communications provider in Slovenia with over 100,000 cable TV subscribers and 10,000 broadband Internet customers.

Since its foundation in 1999, Telemach has realized significant financial and operational growth. Revenue has grown over 25% per annum over the last three years and more than 85% of its network has been upgraded to 862 MHz. In addition, approximately two-thirds of Telemach's network supports broadband Internet and digital television services.

UGC will acquire a 100% interest in Telemach based on a total enterprise value of €74 million, which represents a multiple of approximately 8.2 times expected 2004 fourth quarter annualized normalized EBITDA. UGC will pay cash of approximately €71 million for its 100% interest.

The transaction is subject to review by the Slovenian competition authorities and expected to close in the first quarter of 2005.

Mike Fries, President and Chief Executive Officer of UGC, said, "This acquisition represents a unique opportunity to take a leadership position in a new Central and Eastern European market for UGC. Slovenia, which recently joined the EU, has the highest GDP per capita in the region and is adjacent to Austria and Hungary where we currently have large operations. Telemach has upgraded most of its network and, as the largest operator in the country, has achieved good scale and profitability."

Thierry Baudon, Chief Executive Officer of EMP Europe, said "Since EMP became the majority shareholder of Telemach in 2000, Telemach developed from a small cable operator with less than 20,000 subscribers, into Slovenia's undisputed market leader with more than 100,000 video subscribers and operating margins in excess of 45%. Over the last five years, Telemach upgraded its network, introduced new services such as high-speed Internet access and digital video services, thereby changing the public's perception of cable services from a utility-type operator to an innovative company providing a wide range of value-added products and services. We are delighted to have successfully developed the company and wish Telemach and its new owners well for the future."

Rothschild advised EMP Europe on this transaction.