FL Partners, the investment firm backed by former IBI corporate financier Peter Crowley, is in exclusive talks to acquire the Racing Postspecialist newspaper in Britain for some £190 million (€280.42 million) from Trinity Mirror media group. Arthur Beesley, Senior Business Correspondent, reports.
After FL Partners' buyout of Irish bedding firm Kayfoam Woolfson, the proposed deal would bring the value of its investments in the past fortnight close to €350 million.
The likely consideration is somewhat below the £200-£220 million valuation range mooted when Trinity Mirror put the Racing Poston the market several weeks ago.
Anglo Irish Bank is understood to be backing FL Partners in its bid for the turf industry bible, which also attracted interest from Independent News & Media. The bank and its private clients also backed FL Partners in the Kayfoam Woolfson deal.
FL Partners and Anglo are likely to syndicate a portion of the equity in the title to their private clients after the transaction closes. Reports suggest Anglo will act as guarantor on the deal if the bank and FL Partners fail to raise equity for the transaction.
If there is a successful conclusion to FL Partners' talks with NM Rothschild, bankers to Trinity Mirror, the deal would be subject to the approval of the crown prince of Dubai and racing magnate, Sheikh Mohammed bin Rashid al-Maktoum. The prince set up the paper and sold it to Trinity Mirror some years ago, but has a right to veto any sale.
It is understood that FL Partners is being advised on its bid by Alan Byrne, former Racing Posteditor.
