Bulgarian regulator clears Ken Bidco's buy of Kin and Carta

The notified transaction will not harm competition despite creating a horizontal overlap in the infrastructure deployment and management services markets, as well as the infrastructure as a service (IaaS) market, the Commission on Protection of Competition (CPC) said in a statement on Wednesday.

Following the acquisition, the activities of BC Partners' subsidiary United Group in the telecommunications and media sector could become vertically connected with the services offered by Kin and Carta in Bulgaria, the CPC added. In Bulgaria, the BC Partners group has indirect control, through its subsidiary United Group, of telecommunications operator Vivacom, Nova Broadcasting Group, satellite TV and broadband services provider Bulsatcom and Telegraph newspaper.

The two companies' combined share on both the national infrastructure deployment and management services market and the IaaS market is in the 5 to 10% range.

Under the deal, Ken Bidco will acquire direct ownership of 100% of Kin and Carta's equity capital at 1.30 British pounds ($1.65/1.52 euro) per share. The planned takeover values Kin and Carta's capital at some 239 million British pounds on a fully diluted basis, the target company said earlier.

The transaction aims to facilitate the growth, efficiency and sustainability of Kin and Carta. It will enable the company to expand its capabilities, resources and access to capital, ensuring the implementation of its future business strategy.

London-listed Kin and Carta operates in Bulgaria through its local subsidiaries, Kin and Carta Bulgaria and Kin and Carta Services Bulgaria, specialised in software and IT solutions, and business management consultancy. Elsewhere in SEE, the firm is active in Kosovo and North Macedonia.

(1 British pound = $1.27/1.17 euro)