16 Feb 2017, 23:45 (Ref:3712700)
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Archer Capital Sets The Price!
From Today's Australia Financial Review...
Originally Posted by AFR Street Talk Feb 16 2017 at 5:15 PM, Updated Feb 16 2017 at 11:10 PM
Archer Capital has a starting point for V8 Supercars
by Sarah Thompson Anthony Macdonald Joyce Moullakis
A reserve price has been set for Archer Capital's stake in V8 Supercars.
It is understood Archer is willing to entertain offers around the $120 million mark for its 65 per cent stake in the motorsport business.
That's what we can learn from Archer's recent dealings with business man Bart Campbell who, as we reported in January, has had his eyes on V8s.
Street Talk understands Campbell and his UK-listed talent management/sports marketing firm TLA approached Archer with an unsolicited offer of about $120 million for a 65 per cent stake, plus a few bolt-on agreements including an earn-out clause.
While the talked about number was below Archer's buy-in price, sources said the private equity firm was keen to progress the offer and asked Campbell and his company to come back with a solid and fully-funded offer at the same price.
This was meant to happen late last year.
Although, as Street Talk understands it, Archer is still waiting and the private equity manager and the wider V8s organisation have all but given up hope of a Campbell and TLA bid.
Archer's version of events is slightly different - the main point being around the numbers.
Whatever the case, there are two lessons from the ordeal. Campbell's mob probably cannot be trusted to write such a big cheque and Archer is keen to move on V8s.
Archer's Peter Wiggs is now expected to court interest more widely. 2017 is expected to be moving year for the private equity manager, which bought its V8s stake in 2011. [That deal valued V8s at about $300 million, which would put a $180 million tag on Archer's investment.]
The timing is also right in terms of V8s' TV rights deal, which is the biggest revenue earner for the sport.
While Archer may dust some money on V8s, the private equity manager can afford a slight misstep. It is understood the investment is held in the same fund as MYOB and Healthe Care, which were both big winners for the firm.
All things considered, its investors are said to be pretty happy.
A $60m haircut?
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