(RTTNews) – Vodafone Group Plc (VOD.L, VOD) and its subsidiary Vodafone Vierte Verwaltungs AG announced the initiation of procedures for a statutory merger and squeeze-out of minority shareholders in Kabel Deutschland Holding AG. Vodafone Vierte Verwaltungs will acquire the shares of all Kabel Deutschland minority shareholders, and Kabel Deutschland will be merged into Vodafone Vierte Verwaltungs. Completion is targeted before the end of fiscal 2024.
Vodafone has agreed to pay minority shareholders in Kabel Deutschland Holding an annually recurring net compensation of 3.17 euros per KDG share in cash, and also agreed to purchase, upon demand, minority shareholders’ KDG shares in cash at a price that increases every year. The current effective cost of funding for Vodafone is 6.6%, which is significantly higher than its borrowing cost.
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