Vodafone officially launches Kabel takeover; financial watchdog clears deal

Vodafone Group has announced the launch of a voluntary public takeover offer for Germany’s largest cable operator by subscribers, Kabel Deutschland, further to the initial announcement on 24 June 2013. The publication of the offer document has been approved by Germany’s financial watchdog, the Bundesanstalt fur Finanzdienstleistungsaufsicht, clearing one regulatory hurdle for the EUR7.7 billion (USD10.1 billion) deal. From today until 11 September 2013, shareholders of Kabel Deutschland can tender their shares at an offer price of EUR84.50 per share in cash plus the payment of the proposed EUR2.50 dividend previously announced by the cableco, delivering a total value of EUR87.00 per share. As of today, Vodafone has purchased 3,750,462 Kabel Deutschland shares, representing approximately 4.2% of the firm’s total share capital. Kabel Deutschland has a network serving around 8.5 million households in 13 out of 16 states; Vodafone says that the combination of its German unit with the cableco would create an operator with 32.4 million mobile, 5.0 million fixed broadband and 7.6 million direct TV customers.