Versatel’s management and supervisory boards have approved the voluntary public takeover offer submitted on 28 June by private equity group Kohlberg Kravis Roberts & Co (KKR), via its holding company VictorianFibre Holding. The boards concluded that the EUR6.87 (USD9.98) per share cash offer was ‘fair from a financial point of view’, corresponding to a premium of approximately 25% on the price paid to Versatel’s main shareholders, Vienna II (a company owned by Apax Partners), Cyrte Investments and United Internet. The two boards have therefore recommended that the offer be accepted.
According to TeleGeography’s CommsUpdate, under the terms of the deal, during the 17 months following completion, United Internet will have the right to acquire all shares in VictorianFibre Holding. After that period, United Internet will be entitled to buy 25.1% of the shares in the holding company. United Internet has also agreed with KKR on a long-term cooperation regarding Versatel. Alain D. Bandle, CEO of Versatel, is quoted as saying that the company will continue its current strategy to develop into an infrastructure-based market leader and preferred partner network, with a focus on the German wholesale and B2B telecoms markets. The transaction is set to be completed in the third quarter of 2011, subject to approval from the relevant anti-trust authorities.