Portfolio

KKR to buy Axel Springer in €6.8bn deal

By Michele Maatouk

Date: Wednesday 12 Jun 2019

KKR to buy Axel Springer in €6.8bn deal

(Sharecast News) - US private equity group KKR has agreed to buy out the minority shareholders in German publisher Axel Springer in a deal that values the group at €6.8bn.
The offer price of €63 a share in cash represents a 12.5% premium to the stock's closing price on Tuesday and a premium of about 40% to the share price on 29 May, which was the last day before Axel Springer confirmed that it was in talks with KKR about a potential strategic investment.

The offer, which has the backing of Friede Springer, the widow of the company's founder, and chief executive Mathias Döpfner, requires the approval of 20% of the remaining shareholders. Together, Springer and Döpfner hold approximately 45.4% of the group's share capital.

Philipp Freise, member and head of the European technology, media and telecommunications industry team at KKR, said: "Axel Springer has undergone a successful period of digital transformation from which the company has emerged as a leading European digital powerhouse.

"In light of the fast pace of change in the media sector, Axel Springer now needs continued organic investments and successful execution of its strategy so that the company can take advantage of the opportunities ahead. We look forward to supporting Axel Springer in tackling these challenges in a long-term and sustainable manner."

Also on Wednesday, Axel Springer said it expects revenues and core earnings to drop this year, versus previous guidance for a rise in revenue and flat earnings.

At 0945 BST, Axel Springer shares were up 12.1% at €62.80.

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