July 9, 2013 / 4:00 PM / 5 years ago

RLPC-Buyout firms submit final bids for mobile firm DNA-sources

LONDON, July 9 (Reuters) - A decision on who will acquire Finnish mobile phone company DNA is expected in coming weeks after a handful of private equity firms submitted final-round bids, banking sources said on Tuesday.

Apax, Bain Capital, EQT and Providence all submitted bids on Monday for DNA, bankers said, which could fetch around 1.3 billion euros ($1.7 billion) in a sale process run by UBS.

BC Partners had been close to the process but did not place a final bid, bankers said.

Apax, Bain, BC Partners and Providence declined comment, while EQT and DNA were not immediately available.

UBS has put together a financing debt package, which gives would-be buyers confidence that funds are available for a deal of just under 1 billion euros, equivalent to around 5 times DNA’s 2012 earnings before interest, tax, depreciation and amortisation (EBITDA) of 191 million euros, bankers said.

Other banks are putting together rival debt packages and are eager to fund the deal following a lack of takeover activity this year.

Which buyout house wins the auction will depend on whether the debt package is made up solely of high-yield bonds or a mixture of leveraged loans and subordinated debt, bankers said.

DNA is controlled by companies who were previously local phone carriers in Finland. The largest shareholder is Finda Group, which owns close to 33 percent. A listing for up to half of DNA’s shares on the Helsinki stock exchange, allowing owners to sell part of their holdings, is also an option.

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