Doughty Hanson is expected to hand over a big section of its ownership of 20:20 Mobile to the debt syndicate in the coming days, Mobile has learned.
There has been growing disquiet from several members of the debt syndicate in recent months, with continued sliding profits and missed targets.
A ‘debt-for-equity’ swap is expected to be made between members of the syndicate which funded Doughty Hanson’s £347m acquisition.
A new debt structure will be formulated in the coming days, which is likely to keep Doughty Hanson as the lead for the business, but dilutes its shareholding. Doughty is expected to put more money into 20:20 for investment in the new strategy, including expansion and acquisitions.
The changes could mean the syndicate takes a majority control in the business with the lion’s share of the equity, but will continue to leave Doughty Hanson to manage the relationship with the 20:20 management.
The syndicate has been impressed so far with new CEO Meinie Oldersma but is now looking to exercise its right to take ownership given the failed targets.
There is a very slim chance that the syndicate could remove Doughty Hanson and install a new sponsor to act as a bridge between the syndicate and the 20:20 management.