Acceptance threshold for KKR's Axel Springer bid exceeded

Katharine Hidalgo
05 August 2019

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The 20% minimum acceptance threshold of the voluntary public tender offer for Germany-based publisher Axel Springer has been exceeded.

KKR launched a voluntary public tender offer for Germany-based publisher Axel Springer at €63.00 per share on 12 June 2019. 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 €63.20, giving the company a market cap of €6.82bn.

The acceptance period expired on 2 August 2019. The result of the voluntary public tender offer at the expiry of the acceptance period is expected to be published on 7 August 2019.

KKR will draw equity from its European Fund V, which held its interim close on €4.7bn in April 2019 and invests in companies with an enterprise value of €500m-2bn. The firm intends to initiate a de-listing of the company following a successful deal.

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.

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.