Trilantic's Gamenet sets IPO price

The offering price equates to an EBITDA multiple of 5.7x and a market capitalisation of €225m.

Currently, Trilantic owns a 79% stake in the business, while Intralot Italia Holding has a 20% stake and high-net-worth individual Stefano Francolini holds the remaining 0.9% of shares. Following the Institutional Placement, Trilantic and Intralot will have a shareholding equal to 45% and 20% of the company's share capital respectively, assuming full exercise of the greenshoe option.

10,500,000 shares have been placed with 52 investors (equal to 35% of the share capital), of which 9,545,455 shares have been offered exclusively by Trilantic Europe and 954,545 shares as a result of the full exercise of the overallotment option.

This announcement follows the intention to float released in October 2017. The first day of trading on the regulated market of the MTA is planned for 6 November 2017.

Previous funding
Trilantic initially purchased an 80% stake in Gamenet for €50m in November 2010, with an estimated enterprise value of €200m. In 2013, Gamenet listed a €200m note on the Italian ExtraMot Pro market with a fixed 7.25% interest rate, due to mature in August 2018. In 2014, the GP increased its shareholding to 99.2%.

Subsequently, the company acquired a 51% stake in Billions Italia and six months later fully purchased Gnetwork in March 2015. In June 2016, the business merged with the Italian-based activities of Greek listed gaming market operator Intralot Group. The deal saw Intralot acquire a 20% stake in the merged entity. In the same month, the group acquired a 70% stake in Jolly Videogiochi and a 51% holding in New Matic.

In July 2016, Banca IMI and Unicredit arranged a €30m revolving credit facility for the business. Gamenet went on to purchase a 60% stake in Agesoft, a software developer for amusement and entertainment devices, and fully acquired Gamecity, a Lucca-based slot halls manager.

In August 2016, the business refinanced its debt with €200m's worth of high-yield, non-convertible and non-subordinate, senior secured five-year bonds with a 6% coupon, due to mature in 2021. The note was listed on the Euro MTF market.

Company
Founded in 2016, Gamenet is a betting and gambling group, comprising video lottery, amusement-with-prize, gaming halls and online betting. Currently, it manages 67 gaming halls and has a presence in 660 halls. According to public documents, the business posted €537.4m in revenues, €70.2m in EBITDA and €158.3m in net debt in 2016. It currently employs 550 people.

People
Gamenet – Vittorio Pignatti Morano Campori (president).

Advisers
Company – Banca IMI (global coordinator); Credit Suisse (global coordinator); Unicredit (global coordinator); Banca Akros (co-lead manager); White & Case (legal); Tremonti Romagnoli Piccardi e Associati (tax); PwC (financial due diligence); MGB Capital (corporate finance).

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• Topics
• Exits
• Southern Europe
• Consumer
• Italy
• Trilantic Capital Partners (previously LBMB)
• White & Case
• PwC