News 2003
Consortium to buy Telecom Italia's SEAT directories business
Today, a consortium of investors formed by BC Partners, CVC Capital Partners, Investitori Associati and Permira has entered into a Sale and Purchase Agreement with Telecom Italia for the acquisition of approximately 61.5% of the share capital of "New SEAT"; New SEAT is the company that will inherit the Directories, Directories Assistance and Business Information operations following completion of the previously announced demerger of SEAT Pagine Gialle.
The agreed price is equal to €0.598 per "New SEAT" ordinary share, which equates to an enterprise value of approximately €5.65 billion.
The value of the stake sold by Telecom Italia is therefore equal to €3,032,923,166. Including New SEAT’s estimated net financial debt at closing of €708 million, the transaction will allow Telecom Italia to reduce its net financial debt by approximately €3.74 billion.
The completion of the acquisition will be subject to the demerger of SEAT Pagine Gialle becoming effective, the admission to listing of "New SEAT", that is expected to occur by the beginning of August, and the approval of competent anti-trust authorities.
Pursuant to Italian law, following completion of purchase of Telecom Italia’s interest, the buyer will launch a public tender offer for the remaining ordinary share capital of “New SEAT” at the same price per share of €0.598.
The consortium of buyers has been assisted by Credit Suisse First Boston as financial advisor and by Giliberti Pappalettera Triscornia and Dickson Minto W.S. as legal counsel. The debt financing for the transaction has been arranged and underwritten by BNP Paribas, Barclays Capital, Credit Suisse First Boston and the Royal Bank of Scotland.
Telecom Italia has been assisted by Citigroup and Lazard as financial advisors and Gianni Origoni Grippo as legal counsel.
BC Partners
BC Partners is a leading pan-European private equity firm, operating through integrated teams based in London, Paris, Milan, Hamburg and Geneva. Over 17 years, the firm has developed a long track record of successfully acquiring and developing European businesses in partnership with management, investing in 52 acquisitions with a total value of €25 billion. The BC European Capital VII funds have total commitments of €4.3bn, one of the largest buy-out funds raised in Europe to date. The firm is independent and unaffiliated with any investment bank.