Sale Of TVN SA Could Drag, Structured Deal Possible -Sources
07 September 2011 - 2:47AM
Dow Jones News
The sale of Polish broadcaster TVN SA (TVN.WA) is likely to take
some time and could become a structured deal of two trade buyers or
a trade buyer with one or more private equity firms, investment
bankers familiar with the matter said Tuesday.
Polish entertainment group ITI Holdings SA (ITIH.LU), which
holds a 56% stake in TVN, said early July it was considering
options for a possible sale of its entire stake in the company.
An immediate obstacle to a deal is TVN's share price which
Tuesday traded at 13.06 zlotys, down 15% compared with July 6, the
day before ITI declared an interest in a sale. This values the 56%
stake at PLN2.65 billion ($879 million).
"The sellers are interested in PLN19 to PLN20 [a share]," one
person familiar with the matter said. "It may be hard to get such
an offer."
There are, however, at least eight interested buyers, including
Time Warner Inc. (TWX), Discovery Communications (DISCK),
Bertelsmann AG and Vivendi (VIV.FR), as well as private equity
funds BC Partners, CVC, Kohlberg Kravis Roberts & Co. and Apax,
two people familiar with the matter said.
Private equity fund EQT Partners would be too small to make a
bid alone but could if they partner with someone, one person
said.
Vivendi has already been proposing the deal to private equity
funds, another person said. Under such an arrangement, the buyers
would spin off TVN's web portal Onet.pl, worth about PLN1 billion,
with the private equity fund keeping the core television business
and Vivendi getting TVN's pay-TV unit Platforma "n", one person
said.
German media firm Bertelsmann AG could also join Vivendi and
take the television business, a third person said.
In late August, Vivendi Chief Executive Jean-Bernard Levy said
the company continues to look for small to medium-sized
acquisitions to boost its presence in emerging markets. He declined
to comment on suggestions the group may be interested in acquiring
all or part of TVN. "We never comment on any particular rumor,"
Levy said, but added the company is "very attentive" to what is
happening in Poland where it already has operations.
A spokesman for Bertelsmann declined to comment and the private
equity firms also declined to comment, couldn't immediately comment
or couldn't be reached for comment.
JP Morgan and Nomura are advising ITI.
-By Marynia Kruk, Dow Jones Newswires; +48 22 447-2431;
marynia.kruk@dowjones.com
(Ruth Bender in Paris, Philipp Grontzki in Frankfurt and Margot
Patrick in London contributed to this story)
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