The main shareholders of Germany’s third largest alternative operator Versatel have received a cash takeover offer from KKR, which has been welcomed by the target’s board.
Under the deal, Victoria Fibre Holding, a holding company controlled by KKR, would…
The main shareholders of Germany’s third largest alternative operator Versatel have received a cash takeover offer from KKR, which has been welcomed by the target’s board.
Under the deal, Victoria Fibre Holding, a holding company controlled by KKR, would acquire 92% of the shares in the company from shareholders German broadband business United Internet, as well as private equity groups Apax and Cyrte Investments.
The three have entered into a binding agreement to sell their holdings at E5.50 per share, Versatel stated.
Pending approval by the German Financial Supervisory Authority, BaFin, and the cartel office, the transaction is expected to close in H2.
Remaining shareholders will be able to sell their shares for a cash payment based on the amount of the volume weighted average stock exchange price of the Versatel share during the last three months, or not less than E6.70 per share – a 22% premium on what is being paid to the main shareholders.
United Internet said that from its 11,492,000 shares, it would reap E63.2m E3.4m in cash and E59.8m as a deferred interest-free vendor loan 17 months from completion of the transaction.
Versatel CEO Alain Bandle said: “We welcome KKR’s interest in Versatel and are
pleased that KKR is convinced of the strategy that the company is pursuing. As part of the strategic repositioning of the company, we have already increased efficiency within the organization and decisively focused the company’s activities on the identified growth sectors of Business and Wholesale, as well as on providing support to the company’s top quality customers in the Residential area. We look forward to the partnership with KKR and will continue this strategy in order to further develop Versatel’s position as an infrastructure-based market leader and preferred network partner focusing on the German wholesale and B2B telecommunications market as the cloud enabler.”
The company added that its board had already signed an investment agreement with KKR containing the key elements of the transaction and Versatel’s future foundation, including financing.
Versatel is advised by BoA Merrill Lynch and Latham & Watkins.
For the 2010 financial year, Versatel, which operates a fibre network, recorded a turnover of E725m.
