Cogeco dumps Cabovisao for $60M
Cogeco Cable's international experiment ended with the quiet sale of its Portuguese subsidiary for about a tenth of what it bought the operation for.
Cogeco sold Cabovisao - Televisao por Cabo for $60 million (€45 million). It bought Portugal's second-largest cable company in 2006, for what would be about $621 million (€465 million) at today's exchange rates.
Portugal has been subject to all of the same economic problems besetting much of Europe. Cabovisao has been losing customers, and many customers it has retained have downgraded their service.
In its third quarter last year, Cogeco wrote off its entire investment in Cabovisao, taking a hit of about $235 million.
Reports began surfacing in November that the Canadian operator was looking to offload the Portuguese operation.
The buyer is Altice, a European group of investors. Altice also has holdings in several European service providers, including Numericable, Est Videocom, Coditel and Completel.