Several bidders are reportedly considering bidding for the French assets of tower group TeleDiffusion de France (TDF), estimated at approximately €4bn (US$5.3bn).
The bidders include Canadian pension funds CPP and PSP Investments, US towercos American…
Several bidders are reportedly considering bidding for the French assets of tower group TeleDiffusion de France (TDF), estimated at approximately €4bn (US$5.3bn).
The bidders include Canadian pension funds CPP and PSP Investments, US towercos American Tower and Crown Castle, Australian investment firms Macquarie and AMP Capital, as well as French infrastructure group Antin, according to Reuters citing three sources.
Asian investors and leveraged buyout firms are also rumoured to be interested in the assets. However, the latter may struggle to successfully bid against pension funds and tower operators, the report said.
First-rounds bids are due tomorrow with Goldman Sachs and Rothschild organising the sale process, TelecomFinance was told.
The €4bn estimated value for the transaction is based on the French assets’ EBITDA of €380m and multiples of 10.5-11.5.
Lenders are reportedly putting together debt packages worth approximately €2bn.
CPP and Texas Pacific Group (TPG), a TDF major shareholder, Macquarie and PSP declined to comment on the report while the other parties were not immediately available for comment.
Speculations about a TDF sale first emerged in May this year, when it was reported that US-based TPG and France’s Axa Private Equity, which together control 60% of the towerco, were examining options for the sale of either part or all of their assets.
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%).
Following the sale of the French unit – its main business – TDF is also expected to offload its German assets.
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 to 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.
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.
