* Banks, funds to sell some of their stakes, remain invested
* Market cap estimated at 1-1.2 billion euros - sources
* Listing planned for June 25 - sources
(Adds details, outlook)
FRANKFURT, May 27 German roofing company Braas
Monier Building Group plans to list its shares on the Frankfurt
stock exchange in a potential 500 million euro ($683 million)
flotation, taking advantage of buoyant capital markets.
Banks and investment funds which took control of the company
following a debt restructuring plan to sell some of their
shares, the company said in a statement on Tuesday.
The listing, which would give Braas Monier a market
capitalisation of about 1-1.2 billion euros, will likely take
place on June 25, sources familiar with the transaction said.
The German market leader in roofing tiles made from clay or
concrete was founded in 1953, prospered in Germany's
reconstruction boom after World War II and later became part of
French cement maker Lafarge.
In 2007, Lafarge sold the company to French buyout group PAI
for 2.4 billion euros, which burdened Braas Monier with so much
debt that a financial restructuring could not be avoided when
building markets suffered from a global economic downturn in
Creditors such as Apollo, TowerBrook, York and BNP
Paribas agreed to swap some of their debt for equity,
taking control of Braas Monier and reducing its liabilities by
After a refinancing deal struck in April 2014, Braas
Monier's debt now stands at 565 million euros, comprised of a
315 million euro bond and 250 million euros in loans all due in
"Leverage remains high," ratings agency Moody's said earlier
Unlike car parts maker Stabilus, which had its market debut
last week and is using proceeds from the IPO to pay down debt,
Braas Monier will not cut its debt burden as part of the
In 2013, Braas Monier posted a net loss of 69 million euros
and earnings before interest, tax, depreciation and amortisation
of 84.5 million euros on sales of 1.2 billion euros.
The earnings, however, included one-off charges for
restructuring of 72 million euros, which analysts are likely to
exclude when valuing the firm. They are expecting the company to
post an adjusted EBITDA of 200 million euros in 2014.
If valued at a multiple in line with that of listed peers,
which trade at an average of about 9 times expected earnings,
Braas Monier could be valued at 1.6 billion euros including debt
and taking into account an IPO discount of at least 10 percent.
Braas Monier expects its business to improve this year after
sales dropped 7 percent in 2013.
"We have seen a double-dip in the last five years, a harsh
downturn in 2009 and another decline in 2012/2013," Chief
Executive Pepyn Dinandt told Reuters.
"This year, we expect a strong recovery in Germany and in
UK, while the French and Italian markets are likely to remain
The company also expects its earnings to increase due to
cost-cutting measures like the closure of several sites to
roughly 100 today and selling its U.S. and Brazil businesses.
Braas Monier estimates it has a 28 percent market share in
Germany, putting it ahead of rivals like the Creaton brand of
Belgium Etex Group or the Koramic brand of Austrian Wienerberger
In its second-largest market France it is third-placed
behind rivals Imerys and Terreal.
Braas Monier employs about 7,400 staff.
BNP Paribas, JP Morgan and UBS
are organising the flotation with the help of Goldman Sachs
($1 = 0.7325 Euros)
(Reporting by Arno Schuetze; editing by Thomas Atkins)