Vodafone plans to launch a cash tender offer for Kabel Deutschland (KDG), valuing the cableco at €7.7bn, or €10.7bn including net debt.
The tender, equalling €87 per share, was welcomed by the KDG management and supervisory board.
Vodafone plans…
Vodafone plans to launch a cash tender offer for Kabel Deutschland (KDG), valuing the cableco at €7.7bn, or €10.7bn including net debt.
The tender, equalling €87 per share, was welcomed by the KDG management and supervisory board.
Vodafone plans to pay €84.50 per share plus a dividend of €2.50 for each share, representing a multiple of 13.8 times FY2014 OpFCF
KDG CEO Adrian von Hammerstein welcomed Vodafone’s announcement in a conference call with journalists, highlighting that the combined company would be able to offer quadruple play telecoms services, including fixed and mobile telephony, internet, and TV.
He said the merger would create a “new heavyweight” telecoms player able to compete with German incumbent Deutsche Telekom.
The deal requires that at least 75% of shareholders tender their shares.
The combined entity will generate revenues of €11.5bn, and Vodafone expects annual synergies exceeding €300m four years post completion.
KDG and Vodafone have signed a business combination agreement which includes a matching right if another party announces a competing offer.
Pan-European cableco Liberty Global, owner of Unitymedia KBW in Germany, has previously confirmed interest in acquiring KDG, although it has not formalised an offer at this stage.
Vodafone is advised by Goldman Sachs and UBS.
