LONDON May 4 Bankers are working on debt
packages of around US$1bn to back a potential sale of
Swiss-based smart meter group Landis+Gyr, banking sources said
Japan's Toshiba Corp said in April it was
considering a stock market listing and other options for
Landis+Gyr. It hired UBS earlier this year on the potential
divestment of the group, potentially valued at over US$2bn.
The sale is set to attract a number of buyers and bids are
due in the first round of an auction process on May 21, the
Potential bidders include Advent, AEA, BC Partners,
Blackstone, CVC, Onex and Triton, the sources said. Buyout
groups Carlyle, Cinven, Bain, CD&R and even former owner KKR
could also bid, Reuters reported previously.
The sellers and bidders either declined to comment or were
not immediately available to comment.
Some US$1bn of debt equates to around 5-6 times Landis+Gyr’s
approximate US$200m Ebitda, the sources said.
The financing is expected to be denominated in dollars and
euros and could either be in the form of leveraged loans or high
yield bonds, the sources said.
Smart meter makers have seen a wave of M&A activity. CVC is
selling German metering and energy management group Ista, which
could be worth up to €4bn, while German metering group Techem
could be put up for sale later in the year.
Toshiba bought Landis+Gyr in 2011 for US$2.3bn jointly with
state-backed Innovation Network Corporation of Japan, which
holds the remaining 40% in the company.
Landis+Gyr, in which Toshiba owns a 60% stake, employs more
than 5,700 staff and is active in over 30 countries.
(Editing by Christopher Mangham)