BC bids £50m below Phones 4u asking price

BC bids £50m below Phones 4u asking price

BC Partners’ bid for Phones 4u could be up to £50m below expectations after a funding deal fell through at the 11th hour.

Phones 4u owners, Providence Equity Partners, is asking a minimum of £700m. However, BC Partners came up with a £655m to £680m offer on Thursday after the bank debt it had arranged via Deutsche Bank fell through at the last minute.

According to the Daily Telegraph, failure to raise the funding forced BC, the sole bidder, to go to the European high yield market. It is understood Goldman Sachs is arranging up to £450m of junk bonds that will cost BC an extra 4% a year in interest charges preventing it hitting Providence’s target price.

Private equity group Blackstone and Everything Everywhere are said to be among the parties originally interested in 450-store Phones 4u but both subsequently pulled out of the sale process.

Providence bought Phones 4u for £1.4bn in 2006 from John and Brian Caudwell. 


 

Written by Mobile Today
Mobile Today

Comments

Anybody who could add up could have told the whizz kids at Providence four years ago that P4U was worth NOTHING like £1.4bn. Still it will be the pens ...
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