London-based private equity firm Mid Europa Partners is preparing to exit three portfolio assets, including its stake in T-Mobile Czech Republic, according to Dow Jones, citing unidentified sources familiar with the matter.
The Central and Eastern…
London-based private equity firm Mid Europa Partners is preparing to exit three portfolio assets, including its stake in T-Mobile Czech Republic, according to Dow Jones, citing unidentified sources familiar with the matter.
The Central and Eastern Europe-focused firm has reportedly hired Deutsche Bank to handle the sale of its 39.29% stake in T-Mobile CR, in which Deutsche Telekom is the controlling shareholder.
T-Mobile CR declined to comment, citing company policy. Mid Europa was not immediately available for comment.
The PE firm acquired its stake in the Prague-based mobile operator in 2006 as part of its €1.1bn acquisition of holding company Falcon Group. At the time, Falcon owned national broadcasting and telecoms company Ceske Radiokomunikace (CRa) as well as T-Mobile CR. CRa was sold to Macquarie Infrastructure and Real Assets (MIRA), a division of the international Macquarie Group, for about €574m in 2011.
Mid Europa completed a recapitalisation of its stake in T-Mobile CR in July 2012, increasing its commitments under an existing financing facility to CZK10bn (€394m or US$480.3m).
According to the report, Mid Europa has also hired Credit Suisse to manage the sale of SBB-Telemach, the largest cable TV operator in Slovenia, Bosnia and Herzegovina which also provides broadband internet and telephony services.
The report cited one unnamed source as saying the operator has already attracted “a number” of expressions of interest, with the formal sales process set to begin in June.
Mid Europa led the acquisition of Telemach, then called UPC Slovenia, in 2009. The following year, Telemach expanded into Bosnia and Herzegovina by acquiring three local cable operators.
The third asset earmarked for sale is Denmark-based machinery manufacturer Norican Group, the report cited a source as saying.
The sales are designed to return cash to investors and point them toward the Mid Europa Fund IV, which has a fundraising target of €1bn and a hard cap of €1.25bn, according to the report.
Mid Europa and France Telecom completed the sale of their combined stake in Orange Austria to Hong-Kong-based Hutchison Whampoa’s 3G Austria unit for €1.3bn in January this year.
