Private equity firm KKR will offer the minority shareholders of alternative operator Versatel ?6.87 a share, as part of its announced acquisition of the company.
The share price is based on Versatel’s volumeweighted average domestic stock exchange price…
Private equity firm KKR will offer the minority shareholders of alternative operator Versatel ?6.87 a share, as part of its announced acquisition of the company.
The share price is based on Versatel’s volumeweighted average domestic stock exchange price during the three months to May 19, when the takeover was announced.
KKR launched a public takeover offer to the shareholders of Versatel in mid-May, having previously agreed a separate deal with the company’s three largest shareholding groups.
Public shareholders will be able to sell their shares for a minimum of ?6.70 in cash, with the price based on the amount of the volume weighted average stock exchange price of the Versatel share during the last three months.
Prior to the May 19 announcement, KKR had agreed another deal with Versatel’s main shareholders, which own a collective 92 per cent of the company: broadband business United Internet (which owns a 25.2 per cent in Versatel), as well as private equity groups Apax (41.7 per cent) and Cyrte Investments (25 per cent).
Under that separate binding agreement, each of those groups will sell their shares at ?5.50 apiece, 22 per cent less than the deal being offered to public shareholders by Victoria Fibre Holding, a vehicle controlled by KKR.
A spokesperson for KKR explained that the purpose of these two separate agreements was to allow United Internet to support the company going private now, to exert some continued influence once that takes place, and to keep its ownership options open for the future.
For the 2010 financial year, Versatel, which operates a fibre network, recorded a turnover of ?725m, which it said makes it the third largest alternative provider.
Apax bought its stake in 2005, while Cyrte increased its own stake in 2008.
Pending approval by the German Financial Supervisory Authority, BaFin, and the Cartel Office, the transaction is expected to close in H2. Versatel was advised by BoA Merrill Lynch and Latham & Watkins.
KKR was advised by HSBC and Hengeler & Mueller.
United Internet declined to name its own advisers.
