Kabel Deutschland, Vodafone Sign Domination, Profit & Loss Transfer Agreement

(RTTNews) - German cable operator Kabel Deutschland Holding AG (KBDHF.PK), Friday said it entered into a domination and, profit and loss transfer agreement with Vodafone Vierte Verwaltungs AG, an indirect subsidiary of Vodafone Group Plc(VOD.L, VOD). The Supervisory Board of Kabel Deutschland approved the conclusion of this agreement in its meeting held today.

Pursuant to the agreement, Vodafone Vierte offers to purchase Kabel Deutschland's shares of the minority shareholders, for 84.53 euro per share in cash. The consideration holds good to the volume-weighted average stock market price of Kabel Deutschland Holding AG shares as determined by the German Federal Financial Supervisory Authority for the relevant three-month period up to and including September 12.

The price is higher than the compensation determined by an independent evaluation of Kabel Deutschland carried out by the auditors Warth & Klein Grant Thornton AG, and slightly higher than the price offered by Vodafone Vierte Verwaltungs AG within the context of its public takeover offer. The agreement also provides for an annual recurring compensation payment of euro 3.77 per share.

Vodafone Vierte currently owns 76.57 percent of Kabel Deutschland's shares. The agreement still needs the approval by the extraordinary General Meeting of Kabel Deutschland Holding, which is scheduled on February 13, 2014.