16th May 2005 07:01
3i Group PLC16 May 2005 Monday 16 May 2005 3i Group plc makes four times its money on Yellow Brick Road investment 3i Group plc, Europe's leading private equity company, has agreed to sell YBRGroup ("YBR"), a leading European directory services provider, for EUR 1.8billion to a consortium led by Macquarie Capital Alliance Group. The deal,following the partial realization in 2004, delivers an IRR of 110% for 3i andits buy out fund's investment of €140 million. YBR, was created in March 2004 through the three-way merger of De Telefoongids,Fonecta and Mediatel. Today it is one of the fastest growing directory andsearch companies in Europe, operating in printed directories, online and mobilesearch and directory assistance. YBR has fully owned, market leading operationscurrently spanning five European countries, as well as a presence in additionalmarkets, Under the ownership of 3i and VSS, YBR's management team has successfully grownthe business, both organically and through acquisitions, and has begun torealise the benefits arising from the combination of the company's regionalbusinesses and the sharing of best practices. Jonathan Russell, 3i's Head of Buyouts said: "A 110% IRR is great news and a terrific example of creating value for 3i Group,the investors in our buyout fund and, of course, the management team who havedone an excellent job". Crevan O'Grady, who led the deal for 3i, commented: "Creating such a unique and valuable business over the last few years would nothave been possible without a great management team, the shareholders mediaexpertise and our international network. We wish the management and Macquariewell in taking the business forward to its next level of growth." Gary List, Chairman of YBR added: "3i was uniquely placed to achieve this. I can't think of anyone else who couldhave had the market access to make the original investment in Fonecta, DeTelefoongids and Mediatel and then the ability to put them together sosuccessfully". The background to YBR before today's announcement is as follows: In 1997, 3i backed Gary List to buy out the UK's number two directoriesbusiness, Thomson Directories. After exiting well just two years later, 3ilooked across Europe for similar opportunities. The relationship between 3i'sFinnish venture capital team and telecoms group Sonera, enabled 3i and VeronisSuhler Stevenson ("VSS") to buy out Sonera's telephone directories businessFonecta in 2002. In 2003, 3i and VSS led the buy outs of KPN's directories businesses, DeTelefoongids in the Netherlands and Verizon's directories businesses in Austriaand central Europe. This brought the combined investment by 3i and its buyoutfunds in these separate businesses to €140million. In 2004, together with advisers and management from seventeen differentnationalities Fonecta, De Telefoongids and Mediatel were merged to form YellowBrick Road (YBR) under the chairmanship of Gary List. A refinancing of thecombined group raised €1 billion of new debt and delivered cash returns for 3iand its co-investment funds of €224 million. After the merger and refinancing,3i and its co-investment funds retained 44% of YBR. In the preliminary announcement of its results for the year to 31 March 2005issued on 12 May 2005 the value of 3i Group plc's 22.7% equity holding in YBR isstated as £37m. For further information please contact:Helen Adams 3i Press office +44 207 975 3465Patrick Dunne 3i Group communications Director +44 207 975 3283 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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