SYDNEY, June 20 Private equity firm Carlyle
Group and Seven Group Holdings said on Thursday
they plan to retain ownership of Coates Hire Ltd, Australia's
top equipment rental firm, following a six-month review of the
Carlyle and Seven appointed Goldman Sachs in November
to carry out a review of the business for a potential sale after
failing to proceed earlier last year with a A$800 million ($831
million) initial public offer.
The pair said the review, assisted by China International
Capital Corp in China and Nomura Holdings in Japan, had
been completed and they "remain fully committed to the business
and continuing to grow" the company.
Carlyle and Seven own 46 percent each in Coates, which had
revenues of A$1.3 billion in the year to June 2012 and had 200
branches across Australia serving engineering, construction,
mining and manufacturing industries.
Last July, sources told Reuters that Coates hired Bank of
America-Merrill Lynch, Deutsche Bank JPMorgan
and Macquarie Group to manage an IPO, which would let
the owners raise funds to repay debt and fund growth.
Carlyle bought the 46 percent stake in Coates in 2008.
Private equity funds typically hold an asset for three to five
years, although frozen IPO markets and lack of strategic buyers
are forcing them to hold their assets longer.