Providence Equity to sell stake in Kabel Deutschland

Providence Equity Partners, a Rhode Island-based private equity firm, is selling a 16.7 percent take in Kabel Deutschland, a German cable television group. Deutsche Bank is handling the deal. Kabel Deutschland’s current share price is EUR28.1 ($38.17), which would mean a cash price of around EUR420 million ($573 million) for the stake.

(Reuters) – Providence Equity Partners is selling a big chunk of its majority holding in Germany’s Kabel Deutschland, Deutsche Bank, who is handling the deal, said on Thursday.

Germany’s biggest lender said the U.S private equity firm wanted to sell a 16.7 percent stake in the cable television group. At the current share price of 28.1 euros ($38.17), this would translate into a cash price of around 420 million euros.

Kabel Deutschland declined to comment.

Shares in the group, which in March became Germany’s largest company to make an initial public offering in almost two years, fell more than 3.6 percent in early trade following reports of the sale, but had recovered somewhat and were trading 1.3 percent lower at 1013 GMT.

The STOXX Europe 600 Media Index was trading 0.1 percent lower, and Frankfurt’s mid-cap index, in which the company is listed, was down 0.2 percent.

“The stake is of a significant size, meaning that the effects are going to be correspondingly noticeable,” one Frankfurt-based trader said.

Analyst Heino Ruland of Ruland Research added that Providence reducing its stake to below 50 percent indicated that it might plan to cut its stake even more.
(Reporting by Josie Cox and Peter Maushagen; Editing by Will Waterman)