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German metering firm Techem in refinancing talks ahead of potential sale -sources

Published 02/07/2016, 01:45 am
Updated 02/07/2016, 01:50 am
© Reuters.  German metering firm Techem in refinancing talks ahead of potential sale -sources
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FRANKFURT/LONDON, June 30 (Reuters) - Australian infrastructure investor Macquarie MQG.AX could soon start preparing to sell its German metering group Techem, bankers said on Friday, after people familiar with the matter said it had begun refinancing talks.

Macquarie fought hard to win Techem in a hostile takeover battle in 2006. Prevailing after a year-long struggle with hedge funds and private-equity companies it bought the company in 2007 for 1.5 billion euros ($1.7 billion).

"Refinancing talks are ongoing, but there has been no visibility so far as to when Macquarie will put the asset on the block", said one banker familiar with the negotiations.

Macquarie and Techem declined to comment.

Techem is held in Macquarie's European Infrastructure Fund 2, established in 2006, which is fully invested since 2010 and whose duration is nearing an end.

Buyout groups typically hold companies for 3-5 years before selling them and several bankers said they expected Macquarie to soon prepare the asset for a sale.

Macquarie may want to time an exit to avoid it being on the market at the same time as peer Ista, which is owned by buyout group CVC and is also expected to be sold relatively soon, another person said.

In late 2015, Techem agreed on a refinancing of its senior debt. It amended and extended 815 million euros of its existing loans in November 2015, increasing its facilities by up to 230 million euros.

In its fiscal year 2015/16, which ended in March 2016, Techem posted adjusted earnings before interest, taxes, depreciation and amortization of 274 million euros on sales of 744 million euros, according to preliminary figures published earlier this month.

Techem is a supplier of energy invoicing and energy management in buildings. Founded in 1952 it currently has 3,500 employees, which service 10.3 million flats.

($1 = 0.8974 euros)

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