3i Group plc realises YBR
3i Group PLC
16 May 2005
Monday 16 May 2005
3i Group plc makes four times its money on Yellow Brick Road investment
3i Group plc, Europe's leading private equity company, has agreed to sell YBR
Group ('YBR'), a leading European directory services provider, for EUR 1.8
billion to a consortium led by Macquarie Capital Alliance Group. The deal,
following the partial realization in 2004, delivers an IRR of 110% for 3i and
its buy out fund's investment of €140 million.
YBR, was created in March 2004 through the three-way merger of De Telefoongids,
Fonecta and Mediatel. Today it is one of the fastest growing directory and
search companies in Europe, operating in printed directories, online and mobile
search and directory assistance. YBR has fully owned, market leading operations
currently spanning five European countries, as well as a presence in additional
markets,
Under the ownership of 3i and VSS, YBR's management team has successfully grown
the business, both organically and through acquisitions, and has begun to
realise the benefits arising from the combination of the company's regional
businesses and the sharing of best practices.
Jonathan Russell, 3i's Head of Buyouts said:
'A 110% IRR is great news and a terrific example of creating value for 3i Group,
the investors in our buyout fund and, of course, the management team who have
done an excellent job'.
Crevan O'Grady, who led the deal for 3i, commented:
'Creating such a unique and valuable business over the last few years would not
have been possible without a great management team, the shareholders media
expertise and our international network. We wish the management and Macquarie
well in taking the business forward to its next level of growth.'
Gary List, Chairman of YBR added:
'3i was uniquely placed to achieve this. I can't think of anyone else who could
have had the market access to make the original investment in Fonecta, De
Telefoongids and Mediatel and then the ability to put them together so
successfully'.
The background to YBR before today's announcement is as follows:
In 1997, 3i backed Gary List to buy out the UK's number two directories
business, Thomson Directories. After exiting well just two years later, 3i
looked across Europe for similar opportunities. The relationship between 3i's
Finnish venture capital team and telecoms group Sonera, enabled 3i and Veronis
Suhler Stevenson ('VSS') to buy out Sonera's telephone directories business
Fonecta in 2002.
In 2003, 3i and VSS led the buy outs of KPN's directories businesses, De
Telefoongids in the Netherlands and Verizon's directories businesses in Austria
and central Europe. This brought the combined investment by 3i and its buyout
funds in these separate businesses to €140million.
In 2004, together with advisers and management from seventeen different
nationalities Fonecta, De Telefoongids and Mediatel were merged to form Yellow
Brick Road (YBR) under the chairmanship of Gary List. A refinancing of the
combined group raised €1 billion of new debt and delivered cash returns for 3i
and its co-investment funds of €224 million. After the merger and refinancing,
3i and its co-investment funds retained 44% of YBR.
In the preliminary announcement of its results for the year to 31 March 2005
issued on 12 May 2005 the value of 3i Group plc's 22.7% equity holding in YBR is
stated as £37m.
For further information please contact:
Helen Adams 3i Press office +44 207 975 3465
Patrick Dunne 3i Group communications Director +44 207 975 3283
This information is provided by RNS
The company news service from the London Stock Exchange
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