German listing for cable company

Click to follow
The Independent Online

Kabel Deutschland (KDG),a broadband and cable provider owned by London and US-based buyout group Providence Equity Partners, is on the verge of a massive listing in Germany.

Major investment banks, such as Morgan Stanley, Deutsche and Goldman Sachs, are expected to be invited to pitch for roles on a listing in Frankfurt within two weeks. It is understood that 25 to 50 per cent of the company, which is valued at €5.5bn (£4.9bn), will be floated. KDG is Europe's biggest cable operator by subscribers and the market is "at its hottest for a number of years" according to a media banker. "In a situation like this, the big banks will be all over KDG," he said.

KDG's finance director, Paul Thomason, was reported in November to have said that it was "no secret" that the company was considering a 2010 flotation. However, he added that no decision had been made.

Providence was part of a consortium that bought KDG from Deutsche Telecom in 2003, for more than €1.7bn. Today, Providence owns the company beside its management.