3i makes £76m in Eltel IPO

Eltel's share offering is expected to complete on February 10 and consists of 36.7 million shares priced at SEK 68 apiece, raising approximately SEK 2.5bn. 17.2 million shares will be sold by existing shareholders.

Ahead of the flotation, 3i held 62.6% of Eltel and second-largest shareholder BNP Paribas held 29.5%, with management holding the balance.

3i will retain a 14.3% stake worth around €49m after the IPO, which will also see Eltel refinance senior loans held by 3i and funds managed by the GP.

3i and its funds have agreed to sell up to 3.3 million shares in an over-allotment option of 5.5 million shares.

Eltel shares were trading up 1.06% Monday morning, on the second day of trading after the listing on February 6.

Previous funding
3i bought Eltel from IK Investment Partners and Nordic telecoms company TeliaSonera in a 2007 deal which saw IK reap a 2.5x money multiple.

IK's Industri Kapital 2000 Fund had acquired the company from CapMan three years earlier, paying €190m.

Company
Eltel is a provider of technical services to the European "Infranet" industry, which consist of companies that own and operate critical infrastructure networks including power, communication, transport, and defence.

Headquartered in Espoo, Finland, the company also offers services related to the construction, installation, maintenance and operation of critical infrastructure.

It mainly operates throughout the Nordic and Baltic regions, Poland, Germany, the UK and Africa.

Eltel generates net sales of €1.15bn and reports EBITA of €52m. Founded in 2001, the company employs 8,500 people.

People
Fredrik Karlsson is a partner and co-head for the Nordic region at 3i. Axel hjärne is the CEO of Eltel.

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