Largest private equity investment in CEE
Target: MobilTel EAD, Bulgarian mobile phone network operator. Established in 1994, MobilTel is the largest mobile phone operator in Bulgaria with 2.7 million subscribers and a turnover of ?432 million ($533 million) in 2003.
Bidder: A private equity consortium comprising seven investment funds led by ABN Amro Capital, CVC International and Communication Venture Partners.
Seller: A consortium comprising Austria's third-biggest bank BAWAG, Taus family fund Management Trust Holding, financial company Kordt und Partner and family trust MC-Privatstiftung
Bid value: ?1.1 billion
Dollar equivalent: $1.37 billion
Acquired stake: 40%
Deal technique: Leveraged buy-out
Announcement date: April 17 2004
Date completed: July 5 2004
Financing structure: ?450 million of equity and ?650 million of acquisition debt, ?450 million of the debt being a five-year syndicated lending facility (the largest ever in Bulgaria) and a ?200 million bridge loan that expires after 365 days. The bridge loan is expected to be refinanced by a bond issue before the end of the year.
Lenders: ABN Amro Bank, Citibank and ING Bank as lead arrangers
Legal advisors: Allen & Overy, Paris office, advising the lenders, led by Vikki Greatorex. Haarmann Hemmelrath, led by Bernd Sagasser, and Linklaters, led by Derek Hayward, advising the equity consortium.