Geberit lining up bid for EQT’s Sanitec

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Swiss sanitary system and parts maker Geberit has launched a takeover bid for listed Finnish bathroom ceramics manufacturer Sanitec, which is 20% owned by EQT.

Geberit has reportedly secured a $1.78bn debt package to finance the deal, underwritten by JP Morgan.

The financing includes a CHF 900m bridge loan in anticipation of a bond issue, as well as a €400m bridge loan to be refinanced by a term loan. It will also see a new CHF 300m, five-year revolving credit facility, as Geberit's existing revolver is refinanced.

The Swiss company has offered SEK 97 per share, which is roughly a 50% premium on Sanitec's trading price on the Stockholm stock exchange, and would value the company's equity at SEK 9.7bn.

If the deal goes through it would bring in SEK 1.94bn for EQT, which owns 20 million shares indirectly through the Luxembourg-based vehicle Sofia IV.

EQT listed Sanitec in December 2013 at a share price of SEK 61. The GP last realised value in May, when it sold down half of its 40% stake after the joint bookrunners Nordea and UBS agreed to waive EQT's lock-up period.

Though this allowed the firm to sell its stock at SEK 84.25 a share, the GP would have made SEK 260m more under the terms of Geberit's offer.

EQT first bought Sanitec in 2005 when it acquired the bathroom ceramics maker in a secondary buyout worth €1.33bn from BC Partners, according to unquote" data.