MSP Holding, a subsidiary of mobile services reseller Drillisch, has agreed to acquire a stake of more than five per cent in the mobile and broadband provider freenet from Bank of America for ?55.4m. Assuming it gets regulatory approval, the acquisition…
MSP Holding, a subsidiary of mobile services reseller Drillisch, has agreed to acquire a stake of more than five per cent in the mobile and broadband provider freenet from Bank of America for ?55.4m. Assuming it gets regulatory approval, the acquisition will bring Drillisch’s total direct and indirect stake in freenet up to more than 20 per cent.
Freenet said it had replaced its existing debt with a bank loan and corporate bond package totalling ?740m. In recent years, freenet has sold several of its assets as it looked to reduce debt. The company was also rumoured to be on the block back in 2009.
Private equity firm Permira sold its final 10.1 per cent stake in freenet for ?114.8m last year, in a transaction managed by Goldman Sachs and UBS. Before that, in September 2009, Permira had already sold a 14.9 per cent stake in freenet, again through a placement, raising ?176.7m.
Cyrte Investments and Goldman Sachs also sold a respective 4m and 4.5m shares in the company.
Drillisch is currently freenet’s largest shareholder with a 15.2 per cent stake.
