UPDATED. A €7.7 billion offer looks set to secure Kabel Deutschland (KDG) for the British telco Vodafone.
In a statement, Kabel Deutschland has said that it welcomes the announced tender offer from Vodafone. The management board “considers the price proposed by Vodafone attractive for shareholders and intends to recommend the offer. In the Management Board’s opinion the offer adequately reflects both the strategic value of Kabel Deutschland to Vodafone and the company’s growth prospects.”
In their talks, the parties agreed that the market position of Kabel Deutschland and the range of services it offers will be strengthened by the combination with Vodafone. Within Vodafone Group, Kabel Deutschland will remain a separate legal entity with its headquarters in Unterfoehring (near Munich). Under the Business Combination Agreement, Kabel Deutschland’s management will be responsible in the future for the entire fixed line business with retail customers of Vodafone in Germany, including product development and marketing in that segment. Housing association customers will continue to be served as before by Kabel Deutschland.
Welcoming today’s announcement by Vodafone, CEO Adrian von Hammerstein said: “Kabel Deutschland and Vodafone are an ideal fit. Together, we have the opportunity to become Germany’s leading telecommunications and television provider and to create what for the German market is a unique, winning combination of fixed line and mobile communications.”
Tony Ball, Chairman of the Supervisory Board of Kabel Deutschland, added: “The company is now poised for further growth as a hub for next-generation broadband and content distribution, extending Vodafone’s proven capabilities in mobile networks.”
Reuters reported Sunday that the revised offer of €87 per share was tabled over the weekend, considerable higher than its opening €80 bid.
Vodafone has been looking at ways of developing a triple play offer since the stuttering start of its own IPTV service.
The move will come as a blow to the ambitions of Liberty Global, the owner of Germany’s second largest cablenet Unitymedia KabelBW, and which placed its own offer of €85 per share.
It now seems unlikely that the price for Germany’s cable giant, formed from the break up of Deutsche Telekom’s cable interests, will touch the €100 per share suggested by some analysts.
Kabel Deutschland serves 8.5 million subscribers and has 3,500 employees.
In light of the latest developments, publication of the financial results for the financial year 2013, which Kabel Deutschland had originally planned for 27 June 2013, has been brought forward to today, Monday June 24.
