German cable TV firm Kabel Deutschland said today that it has accepted UK telecom group Vodafone’s revised offer of EUR7.7bn for its business. the company also stated that it considers the application made by Vodafone as attractive for shareholders and has advised them to accept the offer.
Under the agreement in principle, which is subject to a full evaluation, Vodafone is offering shareholders EUR87.50 per share in cash plus a EUR2.50 dividend announced by Kabel in February. Kabel Deutschland should remain as a separate company within the Vodafone Group, with its corporate headquarters in Unterfohring.
According to the memorandum of understanding, Kabel Deutschland’s management will be responsible for the entire retail fixed-line business of both companies in Germany, including the development and marketing of products.
Kabel Deutschland’s CEO Adrian v. Hammerstein commented: “Together, we have the opportunity to become Germany’s leading telecommunications and television provider and to create what for the German market is a unique, winning combination of fixed line and mobile communications.”
According to the BBC, the purchase of Kabel Deutschland will give Vodafone access to 32.4m mobile customers, 5m broadband and 7.6m TV customers in Germany, marking a new direction for Vodafone as it has largely focused on mobile phone services in Europe.
German consumer and business demand for fast broadband and data services is said to have seen a substantial growth, with more customers requiring access to TV, fixed and mobile broadband services from multiple devices.