KKR to take Axel Springer private

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.

Döpfner told German press that escaping the pressures of the public market would allow Axel Springer the financial flexibility to make the necessary investment in the business.

KKR launched the offer at €63.00 per share on 12 June 2019. The share price represented 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. However, that is still below the company's high of €73.00 from last year. At the time of publication, Axel Springer was trading at €63.00, giving the company a market cap of €6.8bn.

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.

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.

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 EBITDA of €737.9m in 2018.

People
KKR – Johannes Huth (head of EMEA); Philipp Freise (head of European TMT).
Axel Springer – Mathias Döpfner (CEO); Friede Springer (board member).

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