* Sale seen raising 1-1.5 bln euros - sources
* BofA Merrill advising DIC on planned sale - sources
* Formal sale process seen launched in Jan 2014
* Mauser sale may attract private equity players
By Arno Schuetze and Dinesh Nair
FRANKFURT/DUBAI, Nov 25 The private equity arm
of Dubai Holding, owned by the emirate's ruler, is weighing the
sale of German packaging group Mauser, three sources aware of
the matter said, in a deal seen fetching between 1 billion euros
($1.4 billion) and 1.5 billion.
The sale of Mauser would be one of the largest asset
disposals by Dubai since its debt crisis in 2009, when several
of its state entities were forced to restructure debt and seek
more time for repayment.
Backed by a recovery in core sectors such as property, trade
and tourism, Dubai is now witnessing strong economic growth and
renewed investor confidence.
Yet the emirate, facing debt repayments of about $50 billion
over the next three years, still needs to sell assets to raise
The private equity unit, Dubai International Capital (DIC),
is planning to launch a formal sale process for Mauser by
January 2014, two of the banking sources said, requesting
anonymity as the plan is not public.
A third source said banks working with potential bidders had
visited DIC in Dubai over the last couple of weeks to discuss
the sale and they expect formal bids to be due in the first
quarter of 2014.
The sale is mainly seen attracting large private equity
players, with few of them trying to pre-empt a formal process
and seeking exclusive negotiations, though DIC is keen to engage
in a competitive process for the asset, one of the sources said.
"Mauser has been a great turnaround story and DIC is keen
that they get the best value for it through a competitive
process. They have been waiting for a good time to dispose this
and looks like it will be next year," the source said.
DIC Chief Executive David Smoot declined to comment. Mauser
was not available for comment.
Bank of America Merrill Lynch is assisting DIC in
the sale, the three sources said. The U.S. bank also declined to
DIC bought Mauser from JP Morgan Chase Inc's buyout
unit in 2007 in a deal which valued the firm at 850 million
euros ($1.2 billion).
The company, founded in 1896 in the small town of Black
Forest in southern Germany, makes packaging equipment such as
cans and drums for transporting medical waste and other
While DIC considered launching a sale in 2012, it decided to
delay the project to refinance Mauser.
Mauser said in May it had received support from about 96
percent of its creditors to amend and extend maturities on
senior debt totaling 678 million euros. It employs about 4,400
and had consolidated revenue of 1.2 billion in 2012.
Mauser also said in the statement its earnings before
interest, tax, depreciation and amortization (EBIDTA) reached a
record high of 134 million euros in 2012.