Cable Holding, a vehicle set up by private equity firm Providence to buy Kabel Deutschland (KDG), has halved its interest in Germany’s number one cableco.
It sold 20 million shares through Goldman Sachs International to institutional investors for E38…
Cable Holding, a vehicle set up by private equity firm Providence to buy Kabel Deutschland (KDG), has halved its interest in Germany’s number one cableco.
It sold 20 million shares through Goldman Sachs International to institutional investors for E38 per share.
With this placement, Cable Holding fetched E760m. A KDG’s statement explained that more than 70 million shares, out of the company’s total 90 million shares, are now in the free float.
Cable Holding remains the largest shareholder in KDG with a 22% interest and has agreed to a three-month lock-up period for its remaining stake. It is hoped the move will help increase “liquidity in the stock” and strengthen KDG’s “MDAX ranking”.
“Following today’s placement, Providence Equity Partners, the largest shareholder behind Cable Holding, continues to hold a substantial investment in Germany’s largest cable operator reflecting their strong support and commitment to the company,” the statement read.
Providence started listing shares in the company a year ago in a successful IPO. It has since then placed shares in KDG, cutting its interest from an initial 88% before the IPO in March 2010 to 22% today.
