US merchant bank Dering Capital is the only bidder left in the race to buy towerco TeleDiffusion de France’s (TDF) French assets and is in advanced discussions with its owners, according to newspaper Les Echos.
Last year the firm, which was founded…
US merchant bank Dering Capital is the only bidder left in the race to buy towerco TeleDiffusion de France’s (TDF) French assets and is in advanced discussions with its owners, according to newspaper Les Echos.
Last year the firm, which was founded by former Blackstone executive Ben Jenkis, was reported to be competing against Canadian pensions funds CPPIB and PSP Investments as well as telecoms tower company American Tower for the assets.
But the potential suitors withdrew from the process because TDF’s shareholders – TPG, Axa Private Equity, FSI and Charterhouse – would not budge from the €4bn (US$5.3bn) asking price, the newspaper claims.
In early September, it was reported that Dering had submitted a €3.8bn (US$5bn) non-bidding offer for the assets. It is not known whether the firm has since made a new bid.
TDF declined to comment while Dering could not be reached for comment before the press deadline.
TDF’s €4bn valuation is based on a multiple of 10.5-11.5 times the French assets’ FY2012 EBITDA of €380m. 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. However, a second source said that sellers would struggle to get more than €3.8bn because of increased competition in France’s mobile market.
Two years ago, the towerco won approval to renegotiate its €4.35bn debt load, most of which is now due in 2016. It is understood that TDF could again refinance its debt within the next few months.
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.
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%).
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 which partners with sovereign wealth funds, pension systems, foundations, endowments and family offices for its investments.
