Kabel Deutschland covers €870m IPO
The European cable sector looks to be one of the few industries not struggling to gain financial backing for business development.
Despite the global economic crisis, German operator Kabel Deutschland has covered a €869.4 million IPO using private investment, while Spain’s Grupo Corporative Ono is on the brink of reaching a deal to restructure €3.6 billion of debt.
Kabel Deutschland’s offering is the biggest in Germany in two years, and was covered in a matter of days by domestic investors, sources quoted by Reuters said.
Up to 34.5 million existing shares were offered, with the price estimated at €21.50-25.50 per share.
In Spain, Ono has asked its lenders to extend €1.5 billion worth of loans and repayments until 2013, and to relax some loan terms.
Banks holding more than two thirds of the debt have already agreed to delay debt obligations, Ono CFO Jonathan Cumming told Bloomberg, after the firm turned around a €26 million loss in 2008, to register a net profit of €50 million in 2009.
The turnaround was achieved after a cost-cutting program that saw the cable firm slash 30% of its workforce through 2009.
Shareholders such as Providence Equity Partners have pledged to provide up to €200 million in funding if the refinancing plan is approved.