BANKERS are putting together around £225m of debt financing to back a potential sale of internet service provider Host Europe, banking sources said yesterday.
Montagu Private Equity bought Host Europe in 2010 backed with £115m of debt, according to Thomson Reuters data. It has hired UBS to sell the business which has a price tag of around £400m, bankers said.
The company has attracted interest from both trade and private equity buyers including Cinven, Hellman & Friedman, Providence Equity Partners and TA Associates, which recently submitted first round bids in an auction process and final round bids are due in August, bankers added.
Cinven and Hellman & Freidman declined to comment. Providence, TA and Montagu were not available.
Bankers are preparing debt packages to back a potential buyout of the company equivalent to up to six times Host Europe’s €37.5m (£32.4m) earnings before interest, taxes, depreciation and amortisation.
City A.M. Reporter