(Bloomberg) -- Apax Partners and Warburg Pincus are exploring an initial public offering of Odido, the Dutch telecommunication business they acquired from Deutsche Telekom AG, according to people familiar with the matter.
The buyout firms have invited potential advisers to interview for roles on a listing next year, said the people, who asked not to be identified because discussions are private. Warburg Pincus and Apax Partners are likely to seek an IPO in Amsterdam, though a sale is also an option, the people said. The business could be valued at as much as €7 billion ($7.3 billion), two of the people said.
The buyout firms agreed in 2021 to purchase T-Mobile Netherlands for €5.1 billion from Deutsche Telekom and venture partner Tele2. The business, which was then rebranded to Odido after the deal completion in 2022, has about 8 million customers and is on track to offer internet and TV via fiber optic cables to more than 6 million households. Odido has more than 100 stores and 2,000 employees in the Netherlands and includes brands such as Simpel, Ben and Tele2 Thuis.
Deliberations are ongoing and no decisions on the size or timing of an IPO have been taken, according to the people. Apax Partners and Warburg Pincus could also decide to keep Odido for longer, they said. The plans by Apax Partners and Warburg Pincus to appoint advisers for an IPO of Odido were reported earlier by Octus.
Representatives at Apax Partners and Warburg Pincus declined to comment. A spokesperson for Odido couldn’t immediately be reached for comment.
Private equity groups are readying themselves for a more favorable exit environment for their investments after a period that has seen dealmaking stunted by higher interest rates and valuation disparities. Pressure is building to return capital to their funders, raising the prospects of a revival in first-time share sales next year.
While European IPO markets have been volatile this year, there’s optimism about a more favorable environment in 2025. Bain Capital and Cinven are preparing an IPO of consumer health-focused drugmaker Stada Arzneimittel AG for early 2025, Bloomberg News reported this month. Still, the threat of tariffs on US imports under a second Donald Trump presidency could affect Europe’s IPO pipeline, particularly those candidates that are more reliant on exports.
--With assistance from Dinesh Nair, Michelle F. Davis and Fion Li.
(Adds detail on IPO pipeline in final paragraph.)
©2024 Bloomberg L.P.