Sharechat Logo

Champ Private Equity hires Goldman Sachs to sell Blue Star

Tuesday 24th July 2012

Text too small?

Champ Private Equity, the Sydney-based buyout firm, has hired Goldman Sachs to sell its indebted printer Blue Star Group after receiving unsolicited approaches to buy the business in June.

Goldman Sachs is assessing the approaches and looking at other possible avenues for sale on behalf of Sydney-based Champ, which bought its controlling 84 percent stake in Blue Star in 2006 from interests associated with then-managing director Tom Sturgess at a price based on an enterprise value of $385 million.

The company said senior lenders had agreed to maintain their support during the sales process. Blue Star last year convinced bond holders to roll over $105 million of NZDX-listed bonds, extending the term and providing more financial covenant headroom. The new bonds, which mature in September 2015, last traded at 1.2 cents per $1 face amount.

While the restructuring provided some breathing space, Blue Star's trading hasn't been as strong as had been hoped when it issued a prospectus for the transaction.

In its first-half results, chairman Nick Greiner said earnings before interest, tax, depreciation and amortisation for the year ended June 30 would fall short of the $53.6 million it had forecast as a "poor trading environment" in the first half was likely to continue.

Blue Star's sale price is reportedly A$100 million to $150 million, depending on the shape of the sale, the Australian Financial Review reported, though company sources called that "just speculation" and wouldn't confirm that the sale could be completed in a matter of weeks.

Blue Star has bank debt of some $167 million and finance leases of $43 million. The printing group also owes Champ $16 million via a senior loan, bringing the total owed to $226 million.

The amended capital bonds were given at $18.7 million, compared to the value of the pre-amended bonds a year earlier of $135 million including accrued interest.

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Asset Plus sells Heinz Watties distribution centre for $29.1 mln
18th July 2019 Morning Report
COMMENT: RBNZ's key political omission in its bank capital proposals
ANZ and Westpac credit rating outlooks downgraded to 'negative' outlook: Fitch
MARKET CLOSE: NZ shares edge higher in quiet trading; weaker currency buoys exporters
NZ dollar stalled amid uncertainty about US rate cuts
RBNZ a 'poor communicator' - CBL's Harris
Methane reduction target could be catastrophic - Fonterra Shareholders' Council
Greater role for gas in electrification of transport, industry
Chorus sees growth in high value gigabit fibre plans

IRG See IRG research reports