ProvEquity taking cable operator public

PROVIDENCE – Providence Equity Partners is preparing to take public Germany’s biggest cable television operator, a shift from the equity firm’s initial plans to sell Kabel Deutschland GmbH, according to news reports.
Providence-based ProvEquity changed its plans because the firm believes listing Kabel Deutschland on a stock exchange will lead to a higher valuation, Reuters reported, citing two unnamed sources.
Six private equity firms reportedly had expressed an interest in buying Kabel Deutschland recently in a deal that could have been worth as much as $7 billion.
A source told Reuters that ProvEquity could generate $1.74 billion from the initial public offering.
Providence-based ProvEquity holds an 88 percent stake in Kabel Deutschland, while Ontario Teachers’ Pension Plan holds 8 percent and Kabel Deutschland managers account for the remaining 4 percent of the shares.
BC Partners Ltd. and CVC Capital Partners Ltd. had made a joint bid for the cable company, and the other bidders were Advent International Plc, Bain Capital LLC, Carlyle Group and Hellman & Friedman LLC.
Kabel Deutschland, Germany’s largest cable TV operator with about 9.1 million households, provides television, broadband Internet and fixed-line telephone services.
Providence Equity Partners Inc. is a global private investment firm – based in Providence, with offices in Los Angeles, New York City, London, Hong Kong and New Delhi. The firm has invested in more than 100 companies, operating in nearly two dozen nations, since its founding in 1989. Additional information is available at www.ProvEquity.com.