Axel Springer acquires a 41% stake in auFeminin.com
Press Release – 06/26/2007
Offer price of EUR 32.00 per share / Leading European internet portal for women / Strong growth and profitability / Axel Springer to support further domestic and international growth .
Axel Springer has signed today a binding purchase agreement with the founders of auFeminin.com concerning the acquisition of a 41.4 percent stake in the leading European internet portal for women in a two-step transaction. Following the closing of this transaction, which is subject to the receipt of German cartel authority clearance expected around the end of July 2007, Axel Springer intends to launch a mandatory takeover offer for all remaining outstanding shares of auFeminin.com at a price of EUR 32.00 per share in cash. auFeminin.com is listed on Euronext Paris (FEM).
The three founders of auFeminin.com have agreed to sell their 41.4 percent stake in auFeminin.com. The terms of the agreement value the company at a total of EUR 284 mill. 27.1 percent of the shares will be paid in cash for EUR 32.00 per share representing an amount of EUR 78 mill. The remaining 14.3 percent stake will be contributed to a German company controlled by Axel Springer.
In the planned subsequent mandatory takeover offer for all remaining outstanding shares of auFeminin.com, Axel Springer intends to offer auFeminin.com shareholders the same price of EUR 32.00 per share in cash. This price represents a multiple of 20.6 based on 2007 EBITDA consensus estimates. The closing price of the auFeminin.com share on June 26 was EUR 36.30.
Axel Springer has been advised on this transaction by BNP Paribas and by Shearman & Sterling. The founders of auFeminin.com have been advised by Michel Dyens & Co. and CMS.