Auto Trader IPO plans could be derailed by GBP 2bn takeover bid from Hellman & Friedman
The private equity group Hellman & Friedman is planning to table a GBP 2bn (EUR 2.66bn) takeover bid for the classified advertising publisher Auto Trader, The Sunday Times reported. The newspaper cited unspecified sources who said Hellman & Friedman believes its offer could prevail over Auto Trader owner Apax Partners’ plans to float the business.
Hellman & Friedman’ has appointed advisers to work on an offer for Auto Trader, the report said, adding that insiders described the buyout group’s plans as at a “very advanced” stage. Hellman & Friedman has already put together a business strategy and lined up debt financing for the acquisition, the item said.
As previously reported, Auto Trader’s owner Apax Partners hired Bank of America Merrill Lynch and Deutsche Bank last month to advise on a possible listing of Auto Trader.
Sources cited by the report said Hellman & Friedman first indicated interest in acquiring the 50% stake in Trader Media previously held by Guardian Media Group (GMG). GMG sold out to co-owner Apax last year.
Should Hellman’s offer for Auto Trader succeed, it could merge the business with its Scout24 portfolio company ahead of a listing of the combined group, according to a senior City source cited by the newspaper.
Sunday Times