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The information memorandum for Emap should be sent in two to three weeks, said a source familiar with the situation. Potential bidders are understood to include private equity but a source close to the situation said the company has so far not received any formal or informal approaches for any parts of the business.
The source close to the situation added that the information memo was being put together and it would be sent out to potential bidders in a matter of weeks. A private equity source confirmed this. ”Not even a teaser has been sent out,” the source said. ”It is going to be a September story rather, nothing for this month,” he noted. A person close to the situation agreed, saying that despite numerous media reports suggesting bidders for EMAP the situation was that ”no-one would have seen a dossier from the company.”
These comments follow a Daily Telegraph report published on Wednesday that Guardian Media Group (GMG), which publishes The Guardian newspaper, is discussing a potential GBP 2bn (EUR 2.94bn) joint bid for Emap with buyout company Apax Partners. Meanwhile, the Times on Thursday reported that Apax put its plans for a GBP 2bn (EUR 2.94bn) bid on hold because it could not secure financing. The report cited sources close to Apax claiming that Apax still wanted to make an offer but that it would now be postponed for several weeks until Apax could secure financing from banks for its bid.
In 2002, Apax, Cinven and Carlyle formed a consortium to acquire Vivendi’s professional and health press divisions. Having demonstrated appetite for publishing assets, they can be seen as potential bidders for Emap’s business publishing division, the source familiar with the situation said. This source also cited Providence Equity Partners and CVC Capital Partners as potential bidders for the unit. A second private equity source with knowledge of the situation said Cinven could not rule out current interest in EMAP but it was too early to talk further. Cinven declined to comment.
GMG, which recently confirmed its interest for Emap’s radio station arm, could also face competition from private equity firms, this source added.
The first source close to the situation said there were no preconceptions about the way the different units could be sold and that value maximization was the aim of the company. Wednesday’s report mentioned that both GMG and Apax plan to put together a list of possible buyers for the consumer-publishing unit of Emap, which could include publishers in Australia, Europe and the US as well as buyout groups. The source familiar with the situation explained that if Apax were prepared to put an offer at an acceptable premium for the whole of Emap, that would protect Emap from the risk of having to sell this less attractive consumer-publishing business itself. In any event, Emap will pursue the best way to maximize value, this source said.
As reported earlier, Deutsche Bank is advising Apax on its discussions with GMG. Meanwhile, Citi and Lazard are advising Emap on bids for its B2B, consumer-publishing and radio businesses.
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