Tele2 to purchase Versatel for €2.20 per share, tender for all Versatel 3.875% convertibles

By Jennifer Chiou

New York, Sept. 13 - Tele2 started a cash offer of €2.20 per share to acquire Versatel Telecom International NV as well as a tender offer for all Versatel's 3.875% convertible senior notes due 2011, according to a 6-K filing with the Securities and Exchange Commission.

The offers begin Sept. 14 and end at 9 a.m. ET on Oct. 7, unless extended.

The company is offering noteholders €132,273.61, including an incentive fee of 0.30% of the principal amount, minus €3,875 if accrued interest to Oct. 28 is paid. The notes are convertible at a conversion price of €1.667 per share.

The offers are conditioned upon the acceptance of at least 95% of Versatel shares and 85% of the notes.

Versatel's board said the offers are in the best interests of its securities holders.

Following the offers, Apax Partners will acquire Versatel Deutschland Holding GmbH from Versatel, which will be sold and transferred to Ganymed 345. VV GmbH for about €539 million. Ganymed is a wholly owned subsidiary of Apax.

The Bank of New York is the tender agent and Morgan Stanley & Co. International Ltd. is the dealer manager.

On Sept. 21, 2004, Versatel said underwriters had exercised the €25 million greenshoe in its €125 million total offering of convertibles, which were priced at 3.875% with a 28% initial conversion premium.

Tele2 is an indirect wholly owned subsidiary of Tele2 AB, which is based in Stockholm, Sweden.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.