ITALY - Bridgepoint and Axa make EUR600m bid for Snai

If the bid is successful, Bridegpoint would own 75% of the business, with Axa holding a 25% stake. The offer, however, does not include a bid for the company's San Siro gallops and trotting racetracks. The two private equity firms have been granted a period of exclusivity, giving them until next week to come up with a final offer. The bidders have reportedly already secured debt financing from a syndicate of banks. The EUR600m bid values the business at about six times its 2009 pro forma EBITDA.

Snai is currently struggling under the weight of its EUR275m debt pile, but the business is still said to be attractive due to its iconic brand. Bridegpoint and Axa intend to reogranise the company's gaming business.

Snai operates 900 branded betting shops and more than 2,500 smaller gambling stalls. Earlier this month, Snai revealed a net loss of EUR9.5m for the year to September, down from a loss of EUR20.1m for the same period the previous year. Revenues currently stand at EUR407.3m, an increase from EUR389.5m last year.

If the deal does not go through, the company could instead attempt to refinance its loans through a bond issue.

Shares in the company were down 5% yesterday, closing at EUR2.88.

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• Topics
• Buyouts
• Southern Europe