The Management Board and Supervisory Board of Tele Columbus have recommended that shareholders of the cableco accept the voluntary public takeover offer of Kublai and tender their shares, after assessing that the offer is fair and adequate. United Internet has agreed to contribute its indirect stake of approximately 29.90% in Tele Columbus to Kublai – a bidding company backed by Morgan Stanley Infrastructure – if the takeover offer is successful, while Rocket Internet has contractually committed to tender its stake of roughly 13.36%.
Daniel Ritz, CEO of Tele Columbus, commented: ‘After independent review of the offer document by the Management Board and the Supervisory Board, both bodies consider the offer price to be fair and adequate. Based on the fair offer price and the guaranteed equity injection of up to EUR550 million (USD662 million), we are convinced that the acquisition of Tele Columbus by the bidder is in the best interest of the company, its shareholders, creditors, employees and other stakeholders. The offer will allow us to implement our Fiber Champion strategy and to reduce our debt. For our shareholders, it provides an opportunity to sell their shares at a fair and adequate price. They now have until 15 March 2021, subject to an extension of the acceptance period, to tender their shares.’
The offer is subject to a minimum acceptance threshold of 50% and is also subject to a sufficient number of waivers of termination rights by bondholders and creditors due to a change of control as well as regulatory approvals. Closing of the takeover offer is expected in the second quarter of 2021.