Vodafone announces tender offer for Kabel Deutschland minority holdings

5 Jan 2021

Vodafone Group and its wholly-owned subsidiary Vodafone Vierte Verwaltungs announced last month a tender offer of EUR103 (USD126) per share to all other shareholders of Kabel Deutschland Holding, in a bid to end the ongoing legal proceedings related to its 2013 takeover of the cableco. Shareholders representing approximately 17.1% of the share capital, including D. E. Shaw, Elliott Advisers and UBS O’Connor, have already accepted the offer. Following completion of the offer, Vodafone will own at least 93.8% of the outstanding share capital of Kabel Deutschland. The acceptance period began on 28 December 2020 and will be open until 1 February 2021. If all Kabel Deutschland minority shareholders tender their shares, the consideration will total EUR2.12 billion. The offer will be conditional on clearance under German foreign investment legislation.

TeleGeography’s GlobalComms Database states that Vodafone announced its intention to acquire Kabel Deutschland in June 2013 via a voluntary public takeover offer which was settled and completed the following October, with Vodafone owning 76.8% of KDG. Subsequently, Vodafone entered into a domination and profit and loss transfer agreement in December 2013, taking effect on 1 April 2014, which allowed the integration of Vodafone Germany and Kabel Deutschland. As a result of the agreement to tender their shares, the accepting shareholders will withdraw their long-running legal action over the price Vodafone paid to take over the cableco, while Vodafone will no longer have to pay compensation of EUR3.17 a share annually to those minority shareholders.

Germany, Vodafone Germany, Vodafone Group