Ratos has sold Danish cable operator Stofa to energy and telecoms group Syd Energi (SE) for an enterprise value of DKr1,900m (€254.7m).

The sale generated a net exit gain for Ratos of SKr850m (€98m) and an IRR of 55 per cent. 

Stofa supplies television and radio signals to around 600,000 Danish households, of which 350,000 receive broadband, SmartTV and telephone services. 

Ratos acquired Stofa in summer 2010. Since then, the company has focused its strategy and improved its efficiency, customer offerings and competitiveness. Investments have been made in infrastructure and marketing projects. Furthermore, it acquired part of Canal Digital's Danish cable TV business. Sales increased from DKr1,024m in 2009 to DKr1,146m in 2011, while operating profit grew from DKr92m to DKr146m over the same period. 

"Stofa is a fine and well-invested company which we would have gladly owned for a few more years since we have not yet shown its full potential. The many measures and investments carried out are expected to provide good earnings development in the years ahead," said Ratos chief executive Susanna Campbell. 

"But since our discussions with SE, which is a very logical buyer, have resulted in them wishing to buy at a price which takes the company's position and prospects into account, we have agreed to sell."