PERMIRA has pulled the plug on its plans to refinance the debt of its Birds Eye food group Iglo which would have seen the buyout house take a hefty dividend, the private equity firm said yesterday.
Permira had lined up a dividend recapitalisation with Credit Suisse and Deutsche Bank just days after rejecting a €2.5bn (£1.97bn) joint bid for the company from Blackstone and BC Partners.
Permira decided not to pursue the dividend recapitalisation plan after it couldn’t reach the level of dividend payout it wanted, loan investors said.
Permira has also decided to stop the sale process and hold onto Europe’s largest frozen foods group after interest fell short of its €2.8bn price tag.
“Iglo Group is performing strongly and is a well-capitalised business. The momentum in the business is strong and its current capital structure gives it the flexibility to pursue both its organic growth strategy and explore further acquisition opportunities,” a statement from the company said.
City A.M. Reporter