The private equity owners of French television network operator TéléDiffusion de France (TDF) are considering breaking up the company in order to facilitate a sale, according to the Financial Times citing people close the matter.
US-based TPG Capital…
The private equity owners of French television network operator TéléDiffusion de France (TDF) are considering breaking up the company in order to facilitate a sale, according to the Financial Times citing people close the matter.
US-based TPG Capital and France’s Axa Private Equity, which together control 60% of the towerco, are reportedly working with Goldman Sachs, Rothschild and BNP Paribas to examine options for the sale of either part or all their assets. However, no decision has been made yet, claimed the paper.
TDF said it was not in a position to comment while Axa declined to comment. TPG could not be reached before the press deadline.
The PE firms took a majority stake in TDF in 2006 for €4.85bn (US$6.3bn). The rest of the company is split between French state-owned fund FSI (24%) and UK’s Charterhouse (14%).
The sources were quoted saying that TPG might first try to sell TDF’s French assets, valued at €4bn including debt, followed by its German operations. Potential buyers may include infrastructure fund manager Macquarie and UK communications infrastructure firm Arqiva.
In August last year, TDF sold its Finnish unit Digita to the Commonwealth Bank of Australia’s First State Investments in a rumoured €400m (US$494m) deal.
TDF Group CEO Olivier Huart stated at the time that the divestment was in line with the group’s strategy to focus on its core markets – France and Germany – as well as develop its Media Services Business unit.
Two years ago, TDF won approval from its lenders to renegotiate its debt structure. The bulk of its €4.35bn debt is now due in 2016 after 90% of the lenders accepted the extension of maturity.
At the time, it was also speculated that TDF may be floated in order to allow the company to cut its debt load. But a source told SatelliteFinance that before an IPO could be envisaged, the company actually needed to reduce the size of its debt burden. It was also reported that other options could include a sale to a strategic buyer or a recapitalisation.
TDF, which provides radio and TV transmission services using its satellite, internet and tower operations, is present in France, Germany, Hungary, Poland, Spain, Estonia and Monaco.
