UPC finalising deal for Broadworks' assets
Published 15/03/2010 | 05:00
CHORUS and NTL owner UPC is finalising a deal to acquire the assets of cable company Broadworks, which is due to be wound up on March 22.
It is not clear at this stage how much will be paid for Broadworks' assets, but it is unlikely to be a significant amount. UPC is understood to be hoping to finalise a deal by the end of the month.
Broadworks has been struggling for a number of years. Accounts for Broadworks' holding company, BWC Investments, noted last year that Broadworks had incurred significant losses but that the business was still in its "developmental stage".
It was seeking €300,000 via loan notes and equity capital in order to shore up the business, which serves an estimated 6,000 homes around Dublin. It is thought that Chorus NTL will begin offering those homes its triple-play services of TV, phone and broadband. It is likely the acquisition will have to be given the all clear by the Competition Authority.
Broadworks was established by former Chorus executive Stephen Keaveney in 2003.
At one stage, the cable company was poised to float on London's Alternative Investment Market, but was put up for sale in 2005.