Phones 4u moves closer to sale

Phones 4u moves closer to sale

Phones4U has selected a 'small number' of bidders to go through to the second round of its sale process, according to a person familiar with the situation.

Private equity firms including Blackstone Group and BC Partners are said to be among the remaining bidders. Interested parties including Vodafone and Everything Everywhere are said to have dropped out of the race.

Phones 4U’s owner, Providence Equity Partners, hired Deutsche Bank to launch an auction last month.

The high street mobile phone retailer was bought by Providence in 2006, from founder John Caudwell. Caudwell sold the distribution and logistics business, 20:20, to Doughty Hanson, as part of the same transaction for £1.46bn in total, according to previous reports.

Under Providence’s ownership the buyout debt has been cut to £184 million from £500 million and the company generated £126 million in earnings before, interest, tax, depreciation and amortization for the year ended 30 September 2010. Expected revenue for 2010 is £850 million.

Analysts are estimating a sale price of £700m to £800m.

Written by Mobile Today
Mobile Today

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