Reuters: Regulatory News: BC Partners pulls SGB Starkstrom sale - sources

Reuters: Regulatory News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

BC Partners pulls SGB Starkstrom sale - sources Oct 25th 2012, 11:08 FRANKFURT | Thu Oct 25, 2012 7:08am EDT FRANKFURT Oct 25 (Reuters) - Private equity firm BC Partners has cancelled the sale of German SGB Starkstrom, a manufacturer of power transformers, as the only remaining bidder failed to secure government backing for the deal, two people close to the matter told Reuters. BC Partners, which mandated Goldman Sachs to organize the sale, had hoped to fetch up to 1 billion euros ($1.3 billion), but Chinese authorities denied the country's dominant electricity distributor permission to strike a deal, one of the people said. The National Development and Reform Commission had not allowed China's State Grid to pursue the acquisition, the person said, adding China saw the sector being struggling with overcapacities already. In China, any overseas acquisition requires government approval. The other source close to transaction said that BC Partens had regarded offer prices as too low and that the investor was happy to hold on to the asset for another 2-3 years. BC Partners and Goldman Sachs declined to comment. State Grid was not immediately available to comment. SGB Starkstrom, a leading manufacturer for electricity power transmission devices, employs roughly 1,300 workers. In 2010, the Regensburg, Germany-based company posted sales of 580 million euros and a net profit of 13 million euros. Originally, SGB Starkstrom was part of Germany's second-biggest utility, RWE. It was sold to private equity group HCP Capital Group in 2004 and then to BC Partners in 2008. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions