KKR launches offer for Axel Springer at €63 per share

The share price represents a 40% premium on the closing price of €45.10 per share on 29 May 2019, before KKR's negotiations with the shareholders were reported. At the time of publication, Axel Springer was trading at €62.60 per share, giving the company a market capitalisation of €6.77bn.

KKR will draw equity from its European Fund V, which closed on €5bn in 2017 and invests in companies with an enterprise value of €500m-2bn.

Friede Springer, Axel Springer's widow, and CEO Mathias Döpfner, who together hold approximately 45.4% of Axel Springer's share capital, have committed to form a consortium with KKR. The pair will not sell any of their shares in the company.

The consortium has entered into an investor agreement with the company that stipulates that it will support the offer. Subject to their duties, the supervisory board and the executive board will recommend the offer to shareholders. The current executive board will continue to lead the company following the transaction.

Axel Springer has been listed on the Frankfurt Stock Exchange since 1985. The company owns publications such as Die Welt, Bild and Business Insider, and reported revenues of €3.18bn and an EBITDA of €737.9m for 2018.

Unicredit is providing financing, JP Morgan is acting as corporate finance adviser, and Freshfields Bruckhaus Deringer and Simpson Thacher & Bartlett are acting as legal advisers.

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