Cirque du Soleil founder/controlling shareholder could receive bids from two groups headed by private equity firms
Bidding groups headed by two private equity funds are likely to submit offers in time to meet a Thursday deadline in order to get a controlling stake in Cirque du Soleil, reported The Globe and Mail on its website 1 April.
Unidentified people familiar with the situation said in the report that London, UK-based CVC Capital Partners is heading one group. Also part of the group is Providence, Rhode Island-based Providence Equity Partners. According to the report, a rival offer is expected to come from a group led by Fort Worth, Texas-based TPG. The report noted that TPG's buying group may include a financial investor from overseas that wants to grow Montreal, Quebec-based Cirque's business in South East Asia. Meanwhile, spokespersons at CVC and TPG opted not to comment, and the newspaper was unable to reach a Providence representative.
According to the report, Guy Laliberté, founder and controlling shareholder of Cirque, retained the services of Goldman Sachs late in 2014 to look for a minority investor in the world's largest theatrical producer. However, due to suitor demand, Laliberté has since acknowledged that he is open to selling all but 10% of his 90% stake in the company, according to unnamed sources.
Renée-Claude Ménard, a Cirque spokesperson, said in the report that the "process is still ongoing." She added that Laliberté is still combing over "his options."
Source The Globe and Mail