In the bid to finally acquire the German media and publishing giant, KKR has made an offer to acquire Axel Springer.
Last week, reported that KKR made an offer to acquire stakes in Axel Springer, a media and classified company with stakes in UK’s Daily Mail.
In the latest offer, private equity giant, KKR has offered to pay €63 for every outstanding shares of Axel Springer. The acquisition will be done through Traviata II S.à r.l., a holding company owned by funds advised by investment firm KKR.
The company said it looks to become the “leading global provider of digital content and digital classifieds. KKR has significant expertise in the digital and media sectors, an impressive track record of successful investments in Germany and across Europe and will be a strong strategic and financial partner for Axel Springer.”
As part of the agreement, Friede Springer, who indirectly and directly controls 42.6 percent of the shares, and CEO Mathias Döpfner, who owns 2.8 percent of the shares, have separately agreed with the Investor to retain their shareholdings in Axel Springer SE.
The company said the shareholder agreement will be subject to closing of the Offer and provides that no decisions on the shareholder level can be taken without the consent of Friede Springer in order to ensure continuity in the governance and the management of the Company.
However, Axel Springer Adjusted EBITDA is expected to decline in the mid-single-digit percentage range (reported) and remain at previous year’s level on an organic basis. Revenues for the Classifieds Media segment should be on prior year’s level or show an increase in the low single-digit percentage range and increase on an organic basis in the mid to high single-digit to low double-digit percentage range.
Also the company said it expects that the adjusted EBITDA in the Classifieds Media segment will decline in the mid-single-digit percentage range (reported) and be at prior year’s level on an organic basis.