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Vodafone offers EUR 7.7 bln for Kabel Deutschland
2013-06-24 08:43:00| Telecompaper Headlines
(Telecompaper) Vodafone has offered EUR 7.7 billion for Kabel Deutschland, valuing the German cable operator at EUR 87 a share. Based on a Business Combination Agreement signed with the board of Kabel Deutschland, Vodafone will pay EUR 84.50 per share cash, and shareholders will also receive a EUR 2.50 per share dividend for the current fiscal year, to be confirmed at KDG's annual shareholders meeting in October. Kabel Deutschland has about EUR 3 billion in debt that would be assumed by Vodafone. The offer is a 37 percent premium on KDG's share price in February, when news of a possible bid first emerged. KDG said its board plans to recommend the bid to shareholders, and management will tender their shares to Vodafone. Kabel Deutschland will remain a separate legal entity with its headquarters in Unterfoehring (near Munich), and its management will oversee the entire fixed-line business of the merged companies, including product development and marketing. Vodafone and KDG expect significant synergies from the merger from cross-selling to each other's customers as well as in network infrastructure and procurement. In addition to the merger announcement, KDG brought forward the publication of its annual results.
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Category:Telecommunications