Providence places 15m KDG shares

1 Oct 2010

Investment group Providence Equity Partners has successfully placed 15 million shares in German cableco Kabel Deutschland (KDG) to institutional investors. Accordingly, 49.5 million shares representing approximately 55% of KDG’s total 90 million shares are in free float. The sale brought in EUR412.5 million (USD561 million) and saw Providence’s shareholding fall from 60.37% to around 45%. The company has agreed to a six-month lock up period for its remaining stake in the company. The book was several times oversubscribed, with 130 institutional investors from the US and Europe submitting orders. Providence sold the shares through its Luxembourg-based subsidiary Cable Holding at EUR27.50 each, or 25% more than the initial public offering (IPO) price of EUR22.5. According to TeleGeography’s GlobalComms Database, KDG made its debut on the Frankfurt Stock Exchange on 22 March 2010, with the cableco’s owners raising EUR759 million after selling a combined 34.5 million secondary shares. KDG operates cable networks in 13 German federal states and provides services to approximately 8.9 million connected households.

Germany, Kabel Deutschland