Private equity firms KKR and Permira to sell ProSiebenSat stake — report

Buyout firms KKR & Co LP (NYSE:KKR) and Permira Advisers LLP are considering selling their majority interest in German broadcaster ProSiebenSat.1 Media AG (ETR:PSM) to a trade buyer, the Financial Times reported.

Informed people told the paper that the private equity firms had hired JPMorgan Chase & Co (NYSE:JPM) to help them review their options for a potential partial or full exit of the business. According to two of the sources, US media and entertainment company Time Warner Inc (NYSE:TWX) could be one of the potential bidders at this early stage.

The consultants may also offer the controlling interest to German newspaper publisher Axel Springer AG (ETR:SPR), which, however, may face certain antitrust issues. Comcast Corp (NASDAQ:CMCSA) and News Corp (NASDAQ:NWSA) are also considered as potential candidates.

In 2006, US-based KKR and UK-headquartered Permira acquired their majority stake in ProSieben for EUR3.1bn (USD4.2bn), valuing the entire company at about EUR5.9bn.

Private equity sponsor KKR increases investment in Vietnam’s Masan to $359m

US private equity major KKR & Co LP (NYSE:KKR) said it would pour a further USD200m (EUR153m) into Vietnam’s Masan Consumer Corp, a unit of Masan Group Corp, in a move that brings its total investment in the fish sauce maker to USD359m, marking its largest Asian investment.

The deal, the biggest private equity transaction in Vietnam, follows an investment of USD159m by KKR in April 2011, its first buy in the country, which gave it a 10% stake in Masan Consumer.

Under the agreed terms, KKR will purchase new and secondary Masan Consumer shares, it said, without providing details about the size of the additional stake it would buy.

Commenting on the acquisition, Lu Ming, KKR’s regional chief for Southeast Asia, said it reflected the US company’s view that Vietnam was a growth market.

KKR has nearly 100 staff in Asia at its seven offices in the region.

Private equity firm KKR agrees to acquire German coffee machines maker WMF

US private equity major Kohlberg Kravis Roberts & Co LP (NYSE:KKR) unveiled on Friday plans to buy German coffee machines and kitchen- and tableware maker WMF Wuerttembergische Metallwarenfabrik AG (ETR:WMF).

KKR, through its Finedining Capital GmbH company, has agreed to acquire the 52% of WMF’s ordinary shares and 5% of its preference shares owned by Capvis Equity Partners AG at EUR47.00 (USD58.20) per WMF ordinary share and will launch a voluntary public takeover offer for the remaining ordinary stock of WMF at the same price.

The offer is a 24% premium WMF ordinary share price as of 5 July, the buyer said.

For the preference shares, KKR said it would pay a cash price equal to the volume weighted average stock exchange price of the WMF preference share during the last three months, but no less than EUR31.70 a piece.

According to Reuters, the takeover proposal is worth at least EUR587m in total.

KKR director Silke Scheiber described WMF as an iconic brand and a sector champion in Germany with substantial growth potential for the future. The buyout group will use its solid international presence and vast experience to support WMF’s global growth, Scheiber said.

Together with WMF’s managers and employees, KKR aims to add to the company’s top standing in the kitchen- and tableware and the automated B2B coffee machines segments, as well as to further expand it internationally, particularly in Asia and the US, it said.

The takeover offer will run for four to six weeks after KKR secures the approval of the German regulator BaFin.

WMF makes and sells kitchen solutions, tableware and coffee machines for households, hotels and the catering sector.

New York-based KKR, with USD62.3bn of assets under management as of 31 March 2012, has offices around the world.

Private equity firm KKR banks $2bn from sale of Alliance Boots stake

US private equity firm Kohlberg Kravis Roberts & Co LP (NYSE:KKR) said on Tuesday it would receive USD2bn (EUR1.6bn) in cash and stock from the sale of its stake in Swiss pharmacy-led health and beauty group Alliance Boots GmbH to US drugstore chain operator Walgreen Co (NYSE:WAG).

Walgreen announced earlier today it would invest an initial USD6.7bn in cash and stock to buy a 45% stake in Alliance Boots under a strategic partnership deal, with an option to buy the rest after a three year period.

KKR, which invested USD2.45bn in Alliance Boots in 2007 alongside the health and beauty retailer’s executive chairman Stefano Pessina, said it would get USD1.8 bn in cash and seven million Walgreen common shares, worth USD200m at current prices, from the disposal.

Under the terms of the deal, Dominic Murphy of KKR will join the Walgreen board together with Pessina, the buyout group said.

Separately, Walgreen said it would pay a total of USD4bn in cash and 83.4m of its shares for the initial Alliance Boots stake. It plans to use existing cash and new debt to finance the cash part of the price and expects to wrap up this deal by 1 September 2012, pending regulatory approvals.

The partnership is seen to create the world’s top pharmacy-led, health and wellbeing retailer with 11,000 stores across 12 countries, the largest global pharmaceutical wholesale and distribution network comprising more than 370 distribution centres serving pharmacies, doctors, health centres and hospitals in 21 countries, as well as the largest purchaser of prescription drugs.

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