© Reuters.

BERLIN (Reuters) – A fund backed by Morgan Stanley (NYSE:) Infrastructure Partners has made a cash offer to buy Germany’s Tele Columbus AG in an agreed deal that values the fibre network operator at over 400 million euros ($487.84 million), Tele Columbus said.

The offer of 3.25 euros per share represents a 13% premium to Tele Columbus’ closing share price on Friday.

Top shareholder United Internet AG on Monday said it will offer its 29% stake in exchange for a stake in the Morgan Stanley-backed investment vehicle.

Tele Columbus said the deal is likely to help finance a 2 billion euro expansion of its fibre optic telecommunications network. It said the deal is also likely to benefit United Internet group companies including 1&1 Drillisch AG, which over the weekend signed a deal to use Tele Columbus’ network to market its own broadband products.

Tele Columbus also said 13% stakeholder Rocket Internet SE supports the deal.

Morgan Stanley Infrastructure Partners said the investment vehicle, dubbed Kublai GmbH, will fully subscribe to a rights issue worth 475 million euros at a price yet to be set.

It will also inject up to 75 million euros in further equity after the transaction closes, the Morgan Stanley unit said.

($1 = 0.8199 euros)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *