Daisy Might Sell To Private Equity

Matthew-Riley-Daisy

Private equity firms including CVC Capital Partners are eyeing bids for Daisy Group in an auction that could value the British telecoms business at about 1 billion pounds ($1.41 billion), banking sources told Reuters today.

According to sources close to the situation, UBS and Oakley Advisory are likely to send out confidential information about Daisy to prospective buyers in April.

Interest is expected to come from buy-out houses including CVC and Providence Equity Partners rather than from rival telecoms companies, they said.

A sale is expected to value the provider of IT and telecoms services to small and medium-sized businesses at less than the 1.5 billion-pound price-tag reported in December, the sources said, with one estimating the company was worth closer to £1.1 bn pounds to 1.2 bn pounds.

Its latest filing shows revenues climbed by almost 18 percent to 602.8 million pounds in the 12 months to the end of March last year, although its pre-tax losses widened to 116.8 million pounds from 103.4 million pounds a year earlier.

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David Dungay

Editor - Comms Business Magazine