* One source sees listing in H1 of 2014
* Listing could value company at EUR 850-900 mln
* Owner EQT abandoned sale last year
(Adds quotes, details, background)
STOCKHOLM, Oct 1 Swedish private equity firm EQT
is planning a Stockholm stock market listing of bath and toilet
maker Sanitec next year, three people familiar with the matter
Two of the people said UBS and Nordea are advising EQT on
the listing, which would take place as the European construction
market is seen turning the corner after a string of rough years
due to the euro zone debt crisis.
"They're aiming for the first half year," one of the people
said. The sources declined to be identified because the plans
are not public. EQT, Sanitec, UBS and Nordea all declined to
Sanitec makes ceramic products for bathrooms, such as
toilets, bath tubs and wash basins and employs around 6,500
people. The firm has 18 production plants across Europe and
makes brands such as Keramag, Twyford and Sphinx. It had sales
of 753 million euros in 2012, almost all of it in Europe.
Building components firm Lindab, kitchen firm
Nobia and heating specialist Nibe, which
are listed in Stockholm and, like Sanitec, dependent on the
fortunes of the European construction market, trade at around
8.5 to 9 times forward earnings (EBITDA) according to Starmine.
Assuming Sanitec's EBITDA remains stable at the roughly 100
million euros of the last two years and applying a multiple of
8.5 to 9 times would yield an enterprise value for Sanitec of
around 850-900 million euros. Sanitec had net debt of around 200
million euros as of June 30.
Sanitec was hit by the economic downturn caused by the
financial crisis, and in 2009 EQT gave up a stake in Sanitec to
its lenders in return for a debt write-off.
EQT added 116 million euros of new equity at the same time,
following an equity injection of 85 million euros in 2008. EQT
owns 73 percent of Sanitec.
In Sanitec's latest report, CEO Peter Nilsson raised the
possibility of a stock market listing, saying the firm's capital
structure was consistent with a potential stock market flotation
following a May bond issue which allowed Sanitec to repay debt
and pay a dividend to its owners.
Last year, EQT tried to sell Sanitec in an auction which was
aborted as bids did not match EQT's expectations.
(Reporting by Sven Nordenstam; editing by Niklas Pollard and