LONDON Nov 8 Bankers are assembling financing
packages of up to 750 million euros ($1.00 billion) to back the
sale of a stake in Deutsche Telekom's online
classified advertising unit Scout24 before Monday's bid
deadline, bankers said on Friday.
Goldman Sachs and Jefferies were hired earlier this year to
advise on the sale, which values the whole business at 1.8
Deutsche Telekom was looking to sell a 30 percent stake in
Scout24 but some bidders wanted to buy a larger stake in the
The remaining bidders, which include EQT, Hellman & Friedman
and Silverlake are expected to submit bids for a 30 percent
stake. Some of the private equity firms could also submit bids
for a 70 percent stake in the business, banking sources said.
Deutsche Telekom, Scout 24 and EQT declined to comment.
Hellman and Friedman and Silverlake were not immediately
available to comment.
The private equity bids are backed by debt packages of
around 6 times Scout24's approximate 125 million euro Earnings
Before Interest, Taxes, Depreciation and Amortisation (EBITDA),
the banking sources said.
The debt could be a mixture of senior leveraged loans,
mezzanine loans and high yield bonds, they added.
Most major loan arranging banks are working on the debt
packages for potential buyers, and are keen to provide financing
after a lack of M&A this year.
"Scout24 is a good credit and banks will want to be involved
in funding the buyout. The deal will have a massive equity
cheque ... because the company has a lot of equity value," one
of the sources said.
Deutsche Telekom also offered a shareholder loan as an
alternative to bank financing.
The German telecom giant wants to sell part of Scout24 to
free up cash for a planned 6 billion euro investment in
broadband in Germany.
Scout24 is active in 22 countries and employs over 1,300
people, according to its website.
($1 = 0.7472 euros)
(Editing by Tessa Walsh)