Exit: KKR and Reggeborgh sell Deutsche Glasfaser to EQT and OMERS
Munich, Frankfurt a. Main — International law firm Clifford Chance has advised global financial investor KKR and Reggeborgh on the sale of telecommunications company Deutsche Glasfaser to EQT and OMERS. The transaction is expected to close in the second quarter of 2020, subject to customary regulatory approvals.
Deutsche Glasfaser was founded in 2011. In 2015, KKR acquired a majority stake from Dutch investor Reggeborgh. With KKR’s investment, Deutsche Glasfaser has become the fastest growing provider of gigabit Internet connections via fiber-to-the-home (“FTTH”) in Germany. With the operational and financial support of KKR, the company invested over EUR 1.2 billion in fiber-optic infrastructure and its roll-out in underserved rural and suburban communities in Germany. For example, Deutsche Glasfaser increased the number of fiber-optic connections to more than 600,000 households and 5,000 companies.
According to plans by EQT and OMERS, Deutsche Glasfaser will be merged with EQT portfolio company inexio to form a leading FTTH provider in rural Germany. EQT will hold 51 percent of the combined group, while Canadian pension fund OMERS will own 49 percent.
Clifford Chance had already advised KKR on its investment in Deutsche Glasfaser in 2015. In addition, a Clifford Chance team had recently advised Deutsche Glasfaser on a 1.8 billion refinancing to further expand fiber infrastructure in Germany.
Clifford Chance M&A Partner Markus Muhs said of the transaction: “We are pleased to have advised KKR throughout its investment in Deutsche Glasfaser with a strong team of M&A, financing and regulatory experts. In this transaction, we were once again able to contribute our industry expertise and many years of experience in the telecommunications and technology sector.”
The Clifford Chance team that advised KKR and Reggeborgh on the sale was led by partners Markus Muhs (Munich) and Frederik Mühl (Frankfurt, both Corporate/Private Equity/M&A).
About Clifford Chance
Clifford Chance, one of the world’s leading law firms, is present for its clients with around 3,400 legal advisors in all major business centers around the world. — In Germany, Clifford Chance is represented by around 300 lawyers, auditors, tax advisors and solicitors in Düsseldorf, Frankfurt am Main and Munich.