Essent To Shortlist Bidders For Milieu Unit In Days -Sources
24 March 2009 - 3:00AM
Dow Jones News
Dutch energy company Essent NV is set to shortlist bidders for
Essent Milieu, its waste management business, within days, people
familiar with the situation told Dow Jones Newswires Monday.
While several private equity firms, including CVC Capital
Partners, Montagu Private Equity and Doughty Hanson, have dropped
out of the process, London-based BC Partners remains interested,
people said.
Buyout shops, trade buyers and infrastructure funds have all
taken a look at the business but a number failed to submit
first-round bids, illustrating the continuing disconnect between
what sellers want and what buyers, of all sorts, are prepared to
pay.
The unit is likely to be valued at around EUR1 billion and
Essent's advisors, ING and Credit Suisse, are arranging a soft
staple financing of around EUR400 million-EUR500 million, other
people have told Dow Jones Newswires.
A report earlier Monday said the staple financing, which is made
up of EUR392.5 million in senior debt and EUR150 million of
mezzanine debt, is nearly complete.
Global Infrastructure Partners, or GIP, is also in the process,
one person said. It is unclear whether infrastructure funds owned
by Fortis NV (FORB.BT) and NIBC have submitted bids.
Meanwhile French energy services group Veolia Environnement (VE)
ruled itself out of a bid for Essent Milieu earlier this month.
Other trade buyers are French GDF Suez (GSZ.FR), U.S. Covanta
Holding Corp. (CVA) and Wheelabrator were also interested but it is
unclear whether they have submitted bids.
Earlier this year the lion's share of Essent's activities was
sold to German utilities company RWE AG (RWE.XE) for EUR9.3
billion. This excluded Essent's power grids business and its
waste-management unit, Essent Milieu.
-By Marietta Cauchi, Carol Dean and Robin van Daalen, Dow Jones
Newswires; +44 207 842 9241; marietta.cauchi@dowjones.com