Dering Capital has reportedly withdrawn its €3.7bn (US$5bn) offer to buy tower company TDF’s French assets after failing to raise enough funding.
However, the private equity firm could still be interested in a minority stake in the…
Dering Capital has reportedly withdrawn its €3.7bn (US$5bn) offer to buy tower company TDF’s French assets after failing to raise enough funding.
However, the private equity firm could still be interested in a minority stake in the company.
Shareholders TPG, Ardian, FSI and Charterhouse, advised by Goldman Sachs and Rothschild, first initiated plans to sell part of the company for around €4bn (US$5.4bn) last spring in order to repay its debt, then estimated at €3.8bn.
TDF’s €4bn valuation is based on a multiple of 10.5-11.5 times the French assets’ FY2012 EBITDA of €380m.
At the time Dering, which was founded by former Blackstone executive Ben Jenkis, was reported to be competing against Canadian pension funds CPPIB and PSP Investments as well as telecoms tower company American Tower. But the potential suitors later withdrew from the process because TDF’s shareholders would reportedly not budge from the asking price.
Rather than finding another buyer in the medium term, TDF may instead seek to extend the maturity of its debt by three years to 2019, a source told French newspaper Les Echos. During that time, it could also seek to revive its German operations, the source said.
In 2011, the towerco won approval to renegotiate its €4.35bn debt load, most of which is now due in 2016.
TDF, however, remains open to selling its French assets for another few months, according to the report. PSP is said to be seeking to come back in the game with a €3.5bn offer while Dering is not totally out of the race.
Les Echos reported that if TDF successfully refinances part of its debt, Dering could grab a minority stake in the towerco.
TDF declined to comment, while Dering was not immediately available.
Speculation about a TDF sale first emerged in May last year when it was reported that TPG and Ardian, then known as Axa Private Equity, which together control 60% of the towerco, were considering options for the company.
The sponsors acquired 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%).
TDF provides radio and TV transmission services using its satellite, internet and tower operations, and is present in France, Germany, Poland, Spain, Estonia and Monaco.
It recently sold its Hungarian unit back to the government for US$250m. It had bought the company from Swisscom in 2008 for €328m (US$444m).
