Dering Capital has submitted a €3.8bn (US$5bn) non-binding offer to acquire towerco TeleDiffusion de France (TDF)’s French assets, according to a Financial Times report citing four people familiar with the situation.
The firm, which was founded by…
Dering Capital has submitted a €3.8bn (US$5bn) non-binding offer to acquire towerco TeleDiffusion de France (TDF)’s French assets, according to a Financial Times report citing four people familiar with the situation.
The firm, which was founded by Blackstone’s former executive Ben Jenkis, is competing against Canadian pensions funds CPPIB and PSP Investments as well as telecoms tower company American Tower for the assets.
First-round bids were due on 9 August with Goldman Sachs and Rothschild organising the sale process. But reports suggested at the time that offers came below an asking price of €4bn (US$5.3bn), the highest one being at €3.7bn.
Other rumoured bidders have included US towerco Crown Castle, Australian investment firms Macquarie and AMP Capital, as well as French infrastructure group Antin.
The €4bn estimated value for the transaction is based on the French assets’ 2012 EBITDA of €380m and multiples of 10.5-11.5. A person close the matter told TelecomFinance in mid-August that a sale is unlikely to happen below the €3.8bn mark, as TDF is looking to repay most of its liabilities with the proceeds.
Two years ago, the towerco won approval to renegotiate its €4.35bn debt load, most of which is now due in 2016 following a maturity extension.
Speculation about a TDF sale first emerged in May this year, when it was reported that PE firms TPG and Axa Private Equity, which together control 60% of the towerco, were considering options for the company.
Provided the sale of its French and main unit is successful, TDF may also try to offload its German assets.
TPG and Axa 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%).
TPG declined to comment on the situation while the other shareholders were not immediately available for comment.
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.
On its website, Dering describes itself as a merchant bank that partners with sovereign wealth funds, pension systems, foundations, endowments and family offices for its investments.
