| CATEGORY: NEW ISSUES SECTOR: EQUITY INVESTMENT INSTRUMENTS |
Candover and Cinven sell Gala stake |
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Fri 19 Aug 2005
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LONDON (SHARECAST) - Hopes that casino and bingo firm Gala might float this year have been dashed after private equity firms Candover Investments and Cinven sold a stake to buyout peer Permira.
The £200m deal values Gala at £1.89bn, with both firms selling an equal amount of equity to Permira who now becomes a joint and equal owner of the company.
Candover and Cinven, who originally backed the £1.24bn buyout of Gala in March 2003, had planned to float the gaming group by early next year.
Proceeds from the deal and an earlier refinancing of the company crystallises a cash return to date of 1.3 times the original investment, Candover said.
Managing director of Candover Marek Gumienny said, “In the two years since we acquired Gala, the company's organic growth track record, robust cashflows and further expansion into the casino market has delivered strong investment performance.
“This transaction, and a previous refinancing, have allowed us to return more than our initial combined investment to our investors whilst retaining a majority stake in the business,” he added.
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