PE Tech Report


Like this article?

Sign up to our free newsletter

Mid Europa offers to buy public minority stake in Invitel

Mid Europa Partners has commenced a tender offer to purchase the outstanding ordinary shares of Invitel Holdings, par value EUR0.01 per share, and any and all of the American depositary shares, each representing one Invitel share, which it does not currently own at a purchase price of USD4.50 per share.

This represents a premium of approximately 27 per cent over the Invitel ADS closing price of USD3.55 on the NYSE Amex Stock Exchange on 4 December 2009 (the last trading day prior to the announcement of the offer) and a premium of approximately 28 per cent and 19 per cent over the average of the Invitel ADS closing prices during the 30 and 60 day periods, respectively, ending 4 December.

Mid Europa currently owns approximately 74.4 per cent of all outstanding Invitel shares, including Invitel shares represented by Invitel ADSs.

The directors of Invitel not affiliated with Mid Europa will consider the proposal. Directors of Invitel affiliated with Mid Europa will not participate in the evaluation of the proposal.

The offer will not be subject to a minimum condition and will not be subject to Mid Europa obtaining any financing.

Assuming that Mid Europa controls more than 90 per cent of the share capital of Invitel following the completion of the tender offer, any Invitel shares and Invitel ADSs not acquired in the tender offer are expected to be acquired in a subsequent compulsory acquisition procedure under Danish law at the same per share cash price offered in the tender offer. 

Mid Europa has advised Invitel that Mid Europa’s sole interest is in acquiring the remaining Invitel shares and Invitel ADSs that it does not currently own and that it has no interest in a disposition of its controlling interest in Invitel.

Shearman & Sterling is acting as Mid Europa’s legal adviser.
Mid Europa Partners is an independent private equity firm focused on Central and Eastern Europe. Operating from London, Budapest and Warsaw, it advises and manages funds with asset value of approximately EUR3.2bn.
Invitel Holdings, formerly Hungarian Telephone and Cable, is the number one alternative and the second-largest fixed line telecommunications and broadband internet services provider in the Republic of Hungary.

Like this article? Sign up to our free newsletter