| LONDON, July 30
LONDON, July 30 Bankers are working on debt
financings of up to 720 million euros (962.86 million US dollar)
to back a potential sale of crop protection company Cheminova as
final bids for the business draw near, banking sources said on
Cheminova's parent company Auriga Industries
announced it had commenced a review of its strategic options in
Auriga hired JP Morgan to consider options for the company
including a possible sale of Cheminova, which has attracted a
number of bidders eager to do deals and put cash to work, the
banking sources said.
Private equity firms Bain, CVC and EQT and Israel-based peer
crop protection company Adama Agricultural Solutions are
expected to submit second round bids in an auction process at
the end of August after a large number of initial bids were
received in July, the banking sources said.
Auriga, Cheminova, Adama, Bain and EQT declined to comment.
CVC was not immediately available to comment .
Bankers are working on debt financings of around 600-720
million euros or 5-6 times Cheminova's Earnings Before
Interest, Taxes, Depreciation and Amortisation (EBITDA) of
approximately 120 million euros, the bankers said.
Debt is likely to be a mix of senior and junior leveraged
loans denominated in euros and dollars and high yield bonds
could also be considered, they added.
Cheminova develops and supplies crop protection products to
increase the yield and quality of crops for farmers.
(1 US dollar = 0.7478 euro)
(Additional reporting by Ole Mikkelsen in Copenhagen and Freya
Berry in London; Editing by Christopher Mangham)