Permira exits Galaxy Entertainment for 2.8x return - update

The transaction came the same day as Galaxy shares reached a record high of HK$29.45 and just two weeks after the casino operator announced a 46% year-on-year increase in EBITDA at HK$2.6 billion ($335 million) for the third quarter, compared with HK$1.8 billion a year ago.

The 249.6 million shares were marketed at HK$27.17-27.46 apiece, with the final price fixed at the lowest end of the spectrum. It represented a 0.5% discount to the company's closing price on Wednesday.

The sales were transacted through two special investment vehicles in a private placement. They are expected to be completed on November 12, according to a regulatory filing.

Permira's divestment started last September, when it sold approximately 6.5% in the casino operator for HK$4.8 billion. The private equity firm was left with a 12.8% stake following the transaction. In August, Permira exited another 6.65% holding in the company at $21 per share through private placement to a select group of investors, raising $753 million.

Galaxy was Permira's maiden direct investment in Asia ex Japan. The private equity firm first backed the casino operator in October 2007, when it became its second largest shareholder by investing $838 million for a 20.51% stake, at HK$8.42 per share. A year later, it purchased a further 0.6% stake for HK$159.5 million.

 

 

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• Topics
• Exits
• Greater China
• Consumer
• Exit
• Permira Advisers
• Consumer