German telco Drillisch has decided to cut its stake in broadband and mobile provider Freenet from 21% to around 10.4%. The shares will be acquired by Bank of America.
Rather than cash changing hands, Drillisch will be relieved from loan obligations of…
German telco Drillisch has decided to cut its stake in broadband and mobile provider Freenet from 21% to around 10.4%. The shares will be acquired by Bank of America.
Rather than cash changing hands, Drillisch will be relieved from loan obligations of €136m to BoA. The transaction values each Freenet share at €18.51.
Freenet shares dropped 2.35% today during morning hours to around €18.25, after closing at €18.70 yesterday.
Back in 2007, Drillisch had teamed up with United Internet to acquire and break up Freenet. Drillsch was interested in Freenet’s MVNO business, while United Internet wanted to get hold of the broadband assets.
Both companies directly and indirectly acquired shares in Freenet, but a full takeover never materialised, largely due to Freenet’s resistance to a breakup. Two years later, in late 2009, United Internet sold its Freenet stake to Drillisch.
Freenet has a market cap of €2.39bn.
