April Group draws BC Partners and CVC for final bids – sources
- At least some bids value target at EUR 20-EUR 25/share
- Unclear if KKR remains in the hunt
The auction for French listed insurance broker and carrier April Group [EPA:APR] is in the home stretch as CVC has submitted a binding offer for the company, one source close and three sources familiar said. BC Partners also placed a bid, the source close and the first source familiar added.
It is not clear when exclusivity will be awarded as the review of the submitted offers remains underway, the source close added.
KKR was previously reported by this news service to be in the running for the asset. KKR declined to comment on whether it was still involved in the auction.
The final bids are offering between EUR 20 and EUR 25 for each April Group share, the source close and the first two sources familiar said, thus implying a EUR 800m-EUR 1bn market capitalization for the company. One source doubted whether such offers would meet April Group’s price expectations.
At market close on 4 December 2018, the company’s stock traded at EUR 16.4, and the company’s market cap stood at EUR 671m.
In 2017, the company generated a EUR 69.4m EBIT on EUR 928.4m sales, according to the company’s financial documentation.
On 23 October, the French insurer announced it was discussing its strategic options with its majority shareholder and had received preliminary expressions of interest from third parties. Bruno Rousset, founder of April, holds 65.1% of the company through vehicle Evolem.
Rothschild is handling the transaction, as reported.
BC Partners, CVC, April and Rothschild declined to comment.
BC Partners is the majority owner of Acuris, the publisher of this news service.