The management board and supervisory board of German cable operator Kabel Deutschland have published a joint statement recommending shareholders accept a EUR7.7 billion (USD10.1 billion) takeover offer by Vodafone Group. The boards said they consider the valuation of EUR87 per share (based on an offer price of EUR84.50 plus a dividend of EUR2.50 per share) to be fair from a financial point of view, representing a premium for shareholders of 37% on the last price before takeover speculations emerged. The joint statement added that the combination of Kabel Deutschland and Vodafone is expected to strengthen the market positions of both companies, with the management of Kabel Deutschland taking responsibility for the combined consumer fixed line business in Germany, including product development and marketing, as well as housing association customers. All members of the management and supervisory boards have stated that they will accept the offer for the shares they hold.
As reported by CommsUpdate, UK-based Vodafone Group officially launched last week a voluntary public takeover offer for Kabel Deutschland, further to the initial announcement on 24 June 2013. Shareholders of the cableco, which has a network serving around 8.5 million households in 13 out of 16 states, have until 11 September 2013 to tender their shares. 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.