KKR To Buy Axel Springer For 6.8 Billion Euros

KKR & Co. KKR, +0.33% is making a public takeover offer for the shares of Axel Springer SE (SPR.XE) after reaching an agreement with the German media company.

KKR will offer all Axel Springer shareholders 63 euros ($71.31) a share in cash, Axel Springer said Wednesday in a press release. The takeover offer will be subject to a minimum acceptance of 20%, Axel Springer said.

According to FactSet, Axel Springer has 107.9 million shares. Based on this, the private-equity firm's offer values the company at EUR6.8 billion.

Axel Springer's executive and supervisory board said they will support KKR's takeover offer, and KKR has entered a shareholder agreement with Friede Springer, widow of the company's founder and Chief Executive Matthias Doepfner. They won't accept the public takeover offer and will continue to be involved in Axel Springer to the same extent as before, Axel Springer said.

Axel Springer shares closed at EUR56.00 on Tuesday. Last month, shares in the company surged after it said it was in talks with KKR for a strategic investment that could take the company private.

Axel Springer on Wednesday also lowered its 2019 view.

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