Canada's Cogeco Sells Struggling Portuguese Cabovisão Cable Business

The Montreal-based media group sold Portugal's second largest cablecaster for $59 million after paying $656 million back in 2006, ahead of the European recession.

OTTAWA – Canadian cable operator Cogeco Inc. has sold its Portuguese cable operation Cabovisão – Televisão por Cabo SA to European Group Altice for $59 million.

Montreal-based Cogeco in 2006 paid parent Cable Satisfaction International $656 million for Cabovisão, Portugal’s second-largest cable system.

That acquisition was part of a diversification into Europe by Cogeco from a maturing Canadian cable market.

But already by 2009, the struggling Cabovisão operation had Cogeco starting to write down the value of its Portuguese business amid a European recession and subscriber losses.

Cogeco said it will use the proceeds of the Cabovisão sale to focus on the Canadian market.