Seat Pagine Gialle – possible change of control

Published 16th October

The Italian newspaper Milano Finanza reports this morning that the three private equity funds that jointly owns the 50% of Seat PG, owner of Thomsons Directories in the UK,  under a joint shareholding agreement have initated negotiation to sell their stakes.

The newsapaper also mentions two possible buyers, two Italian businessmen (Virgilio Degiovanni and Fabio Arpe, backed by capital from the State of Libia). We note that the acquisition of 30% or more of the shares would trigger a mandatory tender offer for the outstanding capital.

It is believed that the current private equity owners are unable or unwilling to put additional capital in Seat PG. A new ownership would open the way for a second capital increase which could improve Seat PG’s overleveraged balance sheet.

Valuation: Seat PG trades on 6.0x EV/EBITDA’10, versus 6.4x for Eniro and 6.6x for Yell and 9.3 for PagesJaunes 

www.seat.it

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