* Munters pegs valuation at SEK 10.1 bln
* Nordic Capital to sell less than half its stake
* Cornerstone investors include Wallenberg-controlled FAM
(Adds Nordic Capital comment, background, detail)
By Niklas Pollard
STOCKHOLM, April 27 Swedish air treatment group
Munters, owned by private equity firm Nordic Capital, will
return to the Stockholm stock market through an initial public
offering (IPO) almost seven years after being taken private, it
said on Thursday.
Munters said the IPO is expected to value the company's
total equity at 10.1 billion Swedish crowns ($1.15 billion) and
that five cornerstone investors had agreed to buy a stake
totalling 26 percent of the company.
Among these investors, holding company Foundation Asset
Management (FAM), controlled by Sweden's Wallenberg business
family, will take a 10 percent stake.
Nordic Capital said its Fund VII would also retain
significant ownership in Munters.
"We intend to sell less than half of our ownership stake and
keep significant exposure -- really as much as possible -- but
we need to create the opportunity for trade in the stock as
well," Nordic Capital Partner Joakim Karlsson told Reuters.
Reuters reported in March that Munters was likely to publish
its intention to float in late April or early May.
A successful IPO of Munters, one of the world's largest
makers of climate-control systems, would mark the biggest
listing on the Nasdaq Stockholm exchange this year and comes as
amid a flurry of record highs in major equity markets.
"Conditions for listings are good. All the classic criteria,
such as very low volatility, overall strong equity markets and a
good macro conditions ... are there," Karlsson said.
Munters' IPO estimate pegs the company's valuation at 17.5
times 2016 operating earnings.
The company last week reported first-quarter adjusted
earnings before interest, tax and amortisation of 147 million
Swedish crowns, up from 119 million crowns a year earlier.
Nordic Capital took Munters private in 2010, paying 5.7
billion crowns for its shares after a bidding war with Swedish
engineering group Alfa Laval.
Since then, Munters has sold a non-core asset to private
equity firm Triton and bought several companies, including Rotem
and Reventa, two manufacturers of control systems for farms.
Carnegie Investment Bank and Goldman Sachs International are
joint global coordinators and joint bookrunners for the listing.
($1 = 8.7665 Swedish crowns)
(Additional reporting by Johannes Hellstrom; Editing by David