Providence Equity reduces stake in Kabel Deutschland
04 Mar 11 -
Private equity investment firm Providence Equity Partners has halved its stake in German cable operator Kabel Deutschland (KDG). The company, through its Luxembourg-based Cable Holding subsidiary, reduced its stake from 43.7% to 22% and received €760 million for its shares. This comes six months after the investor lowered its stake by an initial 17%.
KDG, which is Germany's largest cable operator, welcomed the move and said that it would "increase liquidity in the stock and strengthen the company's MDAX rating". Providence Equity Partners added that it would keep its remaining shares in the company for at least three months.
Speaking to DTVE at last month’s Cable Congress in Switzerland, Providence Equity managing director John Hahn said that KDG’s IPO last year (at a very difficult stage of the economic downturn) had shown that the public markets were now open to the cable industry.
“The equity market was difficult for new companies to enter for about 18 months up until the beginning of 2010. It got a bit better during 2010 and now for the right stories it’s definitely open,” said Hahn. “Specifically for cable, most of the stocks have done incredibly well. We were the first to break the ice and on the heels of that others in private form will have the opportunity to go public if that’s what they want to do.”