Geberit, which is listed on the Zurich Stock Exchange, offers SEK 97 in cash per share or a total of 9.7 billion for Sanitec. That compares with the 61 crowns that was the price when EQT sold off shares in connection with the IPO in December last year. This summer the course was up over 90 crowns, but has since fallen sharply, and closed on Monday at 62.75 crowns.
EQT, which after a further share sale last summer, now owns 20 percent of Sanitec has already accepted yes to Swiss diplomats’ bid. Thus steps venture capital company of shares which has been a real thriller.
EQT became the owner in Sanitec 2005, but during the financial crisis, the company held on to break under the huge debt mountain that arose in connection with the purchase. 2009, a settlement where EQT lost his entire stake of 5 billion and was forced to shoot an additional 1.3 billion to maintain control. Banks also wrote down their loans with 7.5 billion and received an ownership stake.
EQT now get just over 1.9 billion for its last 20 percent if the bid goes through. According to SvD’s calculations summarizes proceeds from all sales of shares in Sanitec that to approximately SEK 6.5 billion. EQT has thus only received a refund of nearly ten years.
For the venture capital company, who normally aims for a 25 percent annual return on their investment, it is therefore a really lousy business – one of the worst in EQT’s history.
In the same fund that owned Sanitec, EQT IV, for example with an investment in the German engine manufacturer Tognum, which gave the whole fifteen times the money.
Caspar Callerström, partner of EQT, and Director of Sanitec would not comment on how good or bad the deal was but suggests that it could have been worse.
– We do not usually comment on the return of individual shops, and this is of course not finished yet. But from 2009 onwards, there has been a tremendous growth of the company and then’ve also followed with the valuation.
Why do you sell?
– Buyers had a requirement to make an offer to the great owners, that is, EQT and fund Zeres, would undertake to sell their shares after the board recommended the offer and after careful consideration, we concluded that it was a good enough bid to we would go along with it, says Caspar Callerström.
IPO price was 61 dollars and the bid is at 97 dollars, but the course was up to the levels last summer. Do you think the shareholders should be satisfied?
– For those who have been there from the beginning, it is difficult to say other than that it’s been a good ride, and compared to how the stock market has gone under the same time is a super business. The offer is also of course the record for Sanitec so everyone involved has made money. So yes, I think they can be happy.
EQT has previously made a number of sales and listings the past six months. That you are now selling it should be interpreted to mean that you believe in a weaker stock market fall?
– When it comes to this single deal, one must remember that this is not initiated by us, we has been a question that we answered yes to. But generally, we thought it was a good climate to sell in recent times, although we also made some purchases.
If the bid goes through became Sanitec time on the stock market just a years. Did you try to sell to other industrial buyers before you put the company on the stock exchange?
– Three years ago, there was a thorough process involving a number of potential buyers contacted, but when no one took the bait. With the launch was not that, it was a pretty quick process.
Where Geberit among those offered to buy three years ago?
– I can not comment more than that you can always contact all potential buyers in such processes.
Sanitec included in EQT IV which is celebrating its tenth anniversary this year and where you only have two other holdings remain beyond Sanitec. Increases the incentives for you to accept that you can then close the fund
– We could have to remain two or three years with no problems, but all things being equal, it is good to complete a business. To note a company’s also a first step towards a full sale, and it was no secret that we would not be left with 20 percent of Sanitec forever.
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