T-Mobile Netherlands next round of bids due next week
The next round of bids for Deutsche Telekom’s [ETR:DTE] Dutch unit are due the beginning of next week, a buyside source and sector banker said.
The deadline for the next bid round is most likely Monday or Tuesday, 21 or 22 December, the buyside source said, adding that this was not the final round, but a "reconfirmation" of interest on the part of bidders.
Deutsche Telekom declined to comment.
The Dutch newspaper De Telegraaf reported this morning that the sale of T-Mobile Netherlands had come to a halt after an offer made by Liberty Global [NASDAQ:LBTYA] failed to satisfy Deutsche Telekom.
However, a person familiar with Deutsche Telekom said a sale remains an option. A sale is part of Deutsche Telekom’s desire to provide a mobile and fixed solution in the Netherlands, the person said. As such, it needs to reduce its reliance on mobile, the person added. Deutsche Telekom has reportedly looked at merging its Dutch division with KPN [AMS:KPN].
Bidders for the next round are likely to include Apax Partners, which has previously been reported as a potential bidder, the buyside source and sector banker said. Apollo, Warburg Pincus, CVC and Liberty Global are also among the interested parties, the buyside source said.
Meanwhile, Deutsche Telekom may consider providing a vendor loan for one of the bidders in an effort to improve the valuation of the business, the sector banker said.
The structure and terms and conditions of the deal has changed, he added. While Deutsche Telekom had initially looked to sell 100% of the unit, it now might retain a stake of the business.
The buyside source said retaining a stake would fit into Deutsche’s M&A strategy, as it did this last year with Scout 24. This would allow it to monetise the asset, while keeping a foot in the door, he added. Scout was divested via an IPO which raised EUR 400m in October 2015.
This news service reported in October that T-Mobile Netherlands could be valued at around EUR 4.4bn. The buyside source put a value of EUR 3bn on the business.
CVC, Apax and Warburg Pincus declined to comment. Apollo and Liberty Global were not immediately available for comment.