20th Nov 2007 07:00
Press release Embargoed until 0700 on 20th November 2007 Candover realises investment in GET in NOK 5.8bn (¢â€š¬745m) sale Candover [see note 1], a leading European buyout specialist, has todayannounced the NOK 5.8bn (¢â€š¬745m [see note 2]) sale of GET, the Norwegian cableTV operator, to a syndicate of investors led by Quadrangle Capital Partners andGS Capital Partners. GET was the first investment to be made by the Candover2005 Fund, and the sale will be the Fund's first exit. Completion of the saleis expected by the year end, subject to regulatory approval. The Candover 2005Fund also announced its eighth investment yesterday, the buyout of AlmaConsulting, the European leader in cost reduction and tax recovery services.GET is a leading cable company in Norway servicing 370,000 homes in Oslo andthe major cities of Southern Norway. The Company serves its customers with aunique triple play offering combining television, telephony services and highspeed broadband internet. GET is headquartered in Oslo and employsapproximately 350 people. GET represents Candover's fourth successfulinvestment in the European cable sector and is one of four successful Candoverbuyouts to date in the Nordic region.Candover and the management of GET acquired the business from Liberty Global ina NOK 3.6bn (¢â€š¬445m) transaction in January 2006. The sale will represent areturn to the 2005 Fund of approximately 2.2x its original investment,generating an IRR of c. 50%. Candover has retained an ownership stake in GET.
John Arney, Managing Director of Candover, said:
"In just under two years, GET has been transformed into a thriving independentbusiness operating under a new but already highly regarded brand and offeringmarket leading services and content to the Norwegian consumer. This hasresulted from the herculean efforts of the management team, led by GunnarEvensen, and from significant new investment in the digital upgrade of thenetwork and the equipment installed in customers' homes. We have everyconfidence that, with the support of its new shareholders, GET will continue togrow strongly under Gunnar Evensen's leadership and consequently, we haveretained partial ownership of the business. We wish the management andemployees every success as GET continues its journey as the pre-eminent tripleplay provider in Norway."The sale of GET results in an uplift of ‚£9.2m compared to the 30th June, 2007valuation of ‚£12.7m, equivalent to an increase of 42p per share (unaudited) inthe net asset value of Candover Investments plc at that date.
Candover was advised by Merrill Lynch who also offered staple financing for the transaction.
Ends.Notes:
1. Candover means Candover Investments plc and / or one or more of its subsidiaries, including Candover Partners Limited as General Partner of the Candover 1997 and 2001 Funds and as Manager of the Candover 2005 Fund.
2. This is based on the average prevailing Norwegian Kroner/Euro exchange rate over the last month.
For further information, please contact:
Candover +44 20 7489 9848 John Arney/David Brickell Tulchan +44 20 7353 4200 Peter Hewer/Susannah Voyle Note to editors:CandoverCandover is a leading provider of private equity for large European buyouts. Founded in 1980, Candover has invested in 134 transactions with a value of over¢â€š¬40 billion. Investment in deals by Candover is provided in two forms, fromCandover Investments plc, a publicly quoted investment trust, and from fundsmanaged by Candover Partners Limited, a wholly owned subsidiary. In November 2005, Candover raised the ¢â€š¬3.5bn Candover 2005 Fund which has madeeight investments to date: the buyout of Alma Consulting Group, the Europeanleader in cost reduction and tax recovery services, the $565m buyout of CapitalSafety Group, the leading global player in the fall protection market, thebuyout of Parques Reunidos, a leading operator of regional attraction parks,the buyout of Ferretti, a leading manufacturer of high performance luxury motoryachts, the ¢â€š¬1bn acquisition of Hilding Anders, a leading European mattress andbeds manufacturer, the acquisition of UK mail services company DX Services plcand merger with Secure Mail Services, the ¢â€š¬450 million buyout of Norwegiancable TV operator UPC Norway, and the ¢â€š¬480 million buyout of EurotaxGlass'sGroup, a leading provider of automotive data and intelligence services.
The Candover Group has four offices in London, Madrid, Milan and Paris. Candover Partners is authorised and regulated by the Financial Services Authority in the UK.
For more information, see www.candover.com.
CANDOVER INVESTMENTS PLCRelated Shares:
CDI.L