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Kabel Deutschland plans €1bn IPO
28 January 2010
Private equity-controlled Kabel Deutschland is considering an initial public offering of its shares, potentially valuing the company at €5 billion
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Kabel Deutschland
Germany
cable
Deusche Telekom
Comment: Kabel Deutschland was hived out of Deutsche Telekom seven years ago for regulatory reasons and after such an interval it is no surprise that the private equity group that controls it should want to monetise its investment
Germany’s biggest cable operator, Kabel Deutschland, is planning an initial public offering of €1 billion shares. KDG, which is 88% owned by a media-focused US buyout firm, Providence Equity Partners, has hired Deutsche Bank, JP Morgan Chase, Morgan Stanley and UBS to manage the sale.
KDG has cable networks in 13 German states and has about nine million connected households. The network is available to more than 15 million homes.
It is also getting offers from private-equity firms, CVC Capital Partners, Carlyle Group, BC Partners and Apollo Global Management, to acquire it. Advent International and BC Partners are also planning potential bids for the German cable company’s leveraged buy-out.
The companies are arranging banks to finance a €5 billion offer for Kabel Deutschland. The bankers are looking to provide around €3.5-€4 billion of debt to fund the acquisition. Morgan Stanley and UBS are advising Kabel on the sale.
Providence Equity Partners purchased the business in 2003 from Deutsche Telekom for nearly €1.63 billion. The acquisition of KDG may fetch nearly €4.98 billion. GTB