UK’s Vodafone Group Plc (LON:VOD) said on Tuesday it had launched a voluntary public takeover bid of EUR87.00 (USD115.43) per share in cash for German cable operator Kabel Deutschland Holding AG.
The price per share includes the payment of the EUR2.50 dividend announced by Kabel in February.
The offer, which is being carried out via the buyer’s unit Vodafone Vierte Verwaltungsgesellschaft mbH, is part of a EUR7.7bn deal agreed between the companies on 24 June. It is conditional upon a minimum acceptance level of 75% and will run until 11 September. As of today, Vodafone has bought 3.8m shares in the target, or around 4.2%, it said.
Vodafone has previously stated that it would fund the deal with cash on hand and debt.
The purchase will provide Vodafone with an attractive platform for TV and fixed broadband in Germany and create a leading integrated player in its biggest European market. The enlarged entity will have 32.4m mobile, 5m broadband and 7.6m direct TV customers, as well as EUR11.5bn of pro forma revenues in Germany, the buyer has said.