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Kabel Deutschland launches €880m IPO
11 March 2010
Providence Equity Partners, owner of Kabel Deutschland, plans to float 30 million shares at up to €25.50 each
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Kabel Deutschland
Providence Equity Partners
IPO
cable
Germany
Deutsche Bank
Morgan Stanley
The owner of German cable company Kabel Deutschland is looking to raise about €880 million from its initial public offering of shares. Providence Equity Partners, a private equity firm, owns 88% of the operator.
Kabel Deutschland will be offering 30 million shares, with an over-allotment option to sell a further 4.5 million. The price range has been set between €21.50 and €25.50 a share, valuing the company at about €5.3 billion including €3 billion in debt.
Deutsche Bank and Morgan Stanley are joint global co-coordinators and joint bookrunners for the IPO, while JP Morgan and UBS are the other joint bookrunners. BNP Paribas, Société Générale and Royal Bank of Scotland are acting as co-lead managers.
Private equity firms including Bain Capital, Advent International, Hellman & Friedman, CVC and BC Partners tried to pre-empt the planned IPO. Providence, however, is keen on floating the company and selling its stake over time instead of accepting a buyout bid. GTB