Takeover bid declined
The cancellation of the takeover of Europe’s biggest frozen food label is
due to a low bid: investors Blackstone and BC Partners have made a deal
to avoid entering a bidding war and together
they offered 2.5 billion euro, much lower than the amount of 2.8 billion
euro its owner Permira had counted on.
Instead of selling, the private investment fund decided to ask for a
refinancing of Iglo’s debt and to enter negotiations with Credit
Suisse and Deutsche Bank for a value of about 1.9 billion euro, to cover
Iglo’s net debt of 1.4 billion euro. Permira will keep the difference
of 500 million euro for itself as a compensation for the failed
transaction and the promise that it will remain the owner of Iglo
for another two to three years.