US financial investor KKR wants to take over German media company Axel Springer, offering all shareholders €63 per share.
Springer and KKR have entered into an investor agreement to support Springer’s long-term growth strategy, the company announced in Berlin. Last night, the share price amounted to €56 per share on the Frankfurt stock exchange.
KKR’s voluntary public tender offer to all Springer shareholders would equal a total value of €6.8 billion. Current shareholders Friede Springer, who controls 42.6% of the shares, and CEO Dr Mathias Döpfner, who owns 2.8%, have separately agreed with the Investor to retain their shareholdings.
Springer’s executive board and supervisory board support the offer and the strategic partnership and intend to recommend shareholders to accept it, according to the statement.
“The executive board welcomes a potential partnership with KKR. It would offer an excellent strategic perspective for our company,” said Döpfner. “Our growth plans will require significant investment in people, products, technology and brands over the next years.”
“The strategic partnership with KKR would enable us to pursue major growth opportunities by providing additional financial capabilities while relieving the mere focus on short-term financial targets. KKR is a long-term focused partner who respects and supports our commitment to independent journalism and our purpose of enabling free decisions,” added Döpfner.
Springer confirmed negotiations with KKR about a strategic investment in the company at the end of May 2019.