UPDATE: Axel Springer in KKR talks to go private

axel springer

Germany’s Axel Springer SE has just made the European market to rally on its announcement that it is talking with private equity giant KKR on possible investment.

The investment deal is planned to take the German publishing firm private.

According to data compiled by Reuters, Daily Mail gained over 8% after it reported a better-than-expected 19% rise in first-half adjusted pretax profit and reaffirmed its forecasts for the full year.

Springer is a publishing company with major interests in UK’s Daily Mail.

The company is mainly owned by the Springer foundation, which has a 37.5 per cent stake, Ms Springer, other family members, and Mr Döpfner.

The company said in a statemnet that it is creating a “consortium consisting of KKR along with the holding companies of Ms Springer and Mr Döpfner. That consortium would then make an offer to buy the shares of remaining shareholders. It was still open whether the talks would ultimately lead to an involvement of KKR, or an offer to take the group private”

“By exploring this transaction the board is pursuing its growth strategy aimed at raising the long-term value of the company. As an investor that is focused on the long term, KKR wants to support this strategy as a member of the consortium,” the company said.

The deal to take Springer private will be for an offer valued at €4.9 billion.