They haven’t sold golden pages yet.. therefore at this stage, its only a paper loss. Unlikely they will sell at great loss if the d2e comes through. There would be no need to sell anything, because they are not in a hurry to repay debt.
Golden Pages for sale for just $10m
The price is 92% below what BCM paid for the group in August 2007.
Ilanit Hayut4 Feb 09 19:06
A year and a half after Sydney-based Babcock & Brown, through BCM, bought the Golden Pages group from the Markstone fund for $123 million, the shelf price of the company is not more than $10 million. Sources inform "Globes" that parties interested in the group's business have offered even lower amounts, because of its heavy debts, which total some NIS 500 million.
The price now being touted for the group is 92% below what BCM paid for it, and 70-90% below valuations made last summer. One, carried out by an Australian firm last June, valued the group at $38-49 million.
This means that BCM will write off at least $100 million from its investment in the group, and is liable to write it off the investment off entirely. Moreover, even at the current, there is as far as is known no serious buyer.
Golden Pages was founded in 1968 by the Aurec group. It was sold to Markstone in 2004 for some $100 million. The group, which at the time it was bought held the Golden Pages directories company and its Internet site, expanded its activity under Markstone. In August 2007, through BCM, Babcock & Brown bought ownership of Golden Pages from Markstone (75%) and the founders (25%), for $123 million (NIS 532 million).
According to BCM's report to the Australian Stock Exchange, Golden Pages' revenue grew in the third quarter by 7% to NIS 94.5 million, compared with NIS 88 million in the corresponding quarter of 2007.
According to Golden Pages chairman Eitan Uliel, because of the fall in BCM's share price and the fact that its market cap is below the value of its cash, aggressive hedge funds that bought the shares seek to realize the assets. "Any statement about value is problematic since a valuation depends on the global stock market, which is in a bad state," Uliel said.
Uliel, who led the acquisition, does not believe he was mistaken or paid too much for the company. "You could say that about any company that was acquired then, since values have fallen about 60% everywhere in the world. I'm relaxed, because the business itself is strong, and generates cash and isn't hemorrhaging," he said.
Published by Globes [online], Israel business news - www.globes.co.il - on February 4, 2009
BNB
babcock & brown limited
