Vodafone Group Plc announced that their proposal to acquire Kabel Deutschland Holding AG was approved by the country's financial regulators. Vodafone proposed to purchase Kabel Deutschland Holding AG for EUR7.7 billion or US$10.2 billion. Shareholders are set to decide on the EUR87 per share offer, which includes a EUR2.50 dividend. Currently, Vodafone Group Plc has a 4.2% stake in Kabel Deutschland.
The Kabel Deutschland Holding AG acquisition will enable Vodafone access to the German company's 8.5 million potential customers and connected household subscribers. Kabel Deutschland Holding AG combined packages include internet, phone and TV subscriptions. The deal would also intensify competition with rival Deutsche Telekom AG, which holds monopoly for Germany's telecommunication industry.
The supervisory board for Kabel Deutschland said that they have set a meeting with Vodafone Group Plc regarding the terms of the proposal. Kabel Deutschland said that they would recommend the Vodafone bid to its shareholders. Both companies are aiming to complete the deal before the Oct 10 annual Kabel Deutschland shareholders meeting.
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