6th Feb 2015 14:15
LONDON (Alliance News) - 3i Group PLC Friday said it is looking at an uplift on previous valuations assigned to its investment in Nordic technical services firm Eltel AB, amid the portfolio company's initial public offering and listing on Nasdaq Stockholm.
Eltel provides technical services for infrastructure networks, or infranets, is power, communications and transport & defence.
According to a statement on the private equity company's website, the stake in Eltel held by 3i Group and funds it manages will be reduced to 25.2% from 62.6%.
3i said it will receive about GBP76 million from the sale of the stake. At the offering price, the group's remaining 14.3% stake is worth about GBP49 million. When taken together, this represents a GBP23 million uplift to the GBP102 million valuation 3i gave to its stake in Eltel at the end of 2014 and a GBP55 million uplift on the GBP70 million valuation given at the end of March in the same year.
In addition, Eltel will refinance senior loans held by 3i and funds it manages.
Eltel's offering comprisef 36.7 million shares, including 17.2 million from existing shareholders, which also include BNP Paribas, priced at SEK68 per share, raising SEK2.49 billion, implying a market capitalisation of SEK4.26 billion.
The offering has an over-allotment of up to 5.5 million additional shares, of which 3i and managed funds have agreed to sell up to 3.3 million shares.
The closing of the offering is expected to take place on February 10.
3i, and funds managed by 3i, acquired a majority stake in Eltel in 2007.
3i shares were up 0.2% at 477.39 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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