Vodafone to buy out Kabel Deutschland minority shareholders
The €2.1bn offer will reduce the UK company’s exposure to legal claims
Vodafone has made a €2.1bn offer to buy out minority shareholders of Kabel Deutschland in an attempt to reduce its exposure to legal claims that the UK telecoms group underpaid to acquire the German company in 2013.
Vodafone has been mired in a multiyear lawsuit with minority investors in Kabel Deutschland, including US activist hedge fund Elliott Management, over the price that it paid to purchase a controlling stake.
Under the terms of the deal announced on Tuesday, it plans to offer €103 in cash for each Kabel Deutschland share, slightly lower than the 30-day average price of €108 but higher than the €92 a share it would have to pay under options that were created at the time of the takeover.
If all minority shareholders accept the offer, it will cost Vodafone €2.1bn.
Investors advised by DE Shaw, Elliott Advisors and UBS O’Connor have accepted the offer for their combined 17.1 per cent stake, which would take Vodafone’s shareholding to at least 93.8 per cent.
The company said that the deal would “reduce Vodafone’s exposure to ongoing legal proceedings related to the KDG acquisition”.