Mid Europa Partners to hoover up Invitel shares

9 Dec 2009

AltAssets reports that the private equity group Mid Europa Partners has offered to purchase all of the outstanding shares of Hungarian alternative operator Invitel Holdings (formerly HTCC), the company it acquired a majority stake in from Danish telephone company TDC in September. Under the deal, the equity group plans to acquire all remaining Invitel shares at USD4.50 per share, equivalent to a 27% premium on last Friday’s closing share price. Mid Europa Partners already owns 74.4% of Invitel’s stock following a deal announced at end-September.

CommsUpdate reported at the time that Invitel Holdings, which offers telecoms services through its subsidiaries Invitel Tavkozlesi, Invitel Technocom, Invitel International and Invitel Telecom, announced the change in its ownership structure and a de-leveraging of the cash-pay debt of Invitel and its subsidiaries. Under the plan, Mid Europa Partners Limited became the controlling shareholder of Invitel, acquiring TDC of Denmark’s 10,799,782 Invitel shares (equivalent to 64.6% of the outstanding shares), for USD1.00 per share. The acquisition was subject to certain conditions precedent, including the approval from relevant regulatory authorities. In connection with the transactions, Invitel said that Mid Europa was purchasing all of TDC’s rights and obligations under a EUR34.1 million (USD49.7 million) subordinated shareholder loan, which would be amended and restated to increase the loan by an amount of up to EUR91.4 million. The additional funds will be principally used by the Invitel Group to fund the purchase or repayment of a portion of the Invitel Group’s outstanding debt.

Hungary,Invitel (a subsidiary of DIGI),

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