Morgan Stanley fund to take over German fibre operator Tele Columbus

Rocket Internet SE

21/12/2020 07:44

BERLIN, Dec 21 (Reuters) - A fund backed by Morgan Stanley
Infrastructure Partners has made a cash offer to buy Germany's
Tele Columbus AG  TC1n.DE  in an agreed deal that values the
fibre network operator at over 400 million euros ($487.84
million), Tele Columbus said.
    The offer of 3.25 euros per share represents a 13% premium
to Tele Columbus' closing share price on Friday.
    Top shareholder United Internet AG  UTDI.DE  on Monday said
it will offer its 29% stake in exchange for a stake in the
Morgan Stanley-backed investment vehicle.
    Tele Columbus said the deal is likely to help finance a 2
billion euro expansion of its fibre optic telecommunications
network. It said the deal is also likely to benefit United
Internet group companies including 1&1 Drillisch AG  DRIG.DE ,
which over the weekend signed a deal to use Tele Columbus'
network to market its own broadband products.
    Tele Columbus also said 13% stakeholder Rocket Internet SE
 RKET.H  supports the deal.
    Morgan Stanley Infrastructure Partners said the investment
vehicle, dubbed Kublai GmbH, will fully subscribe to a rights
issue worth 475 million euros at a price yet to be set.
    It will also inject up to 75 million euros in further equity
after the transaction closes, the Morgan Stanley unit said.
    

($1 = 0.8199 euros)

 (Reporting by Thomas Escritt; Editing by Christopher Cushing)
 ((thomas.escritt@thomsonreuters.com; +49 30 2201 33579 ;))