Jon Moulton’s Alchemy Partners, which tried to buy Rover a few years, has ruled out for the time being his private equity group making a bid for UK white van maker, LDV, or investing in it alongside the European Investment Bank (EIB).
“Nobody’s asked us from the company or EIB. So, at the moment, it would be fair to say we’re not showing any interest in chasing such a proposal,” he said.
Last night, the UK government refused to provide a £30m bridging loan to LDV that could stop a management buyout in its tracks and see the company shut its doors.
The government believes that the primary responsibility for supporting LDV and the management buyout lies with its owner, GAZ — Russia’s second largest automotive group controlled by oligarch Oleg Deripaska.
LDV’s fate now rests with a £26m loan from the European Investment Bank (although the UK government is not guaranteeing the loan), in addition to possible private equity participation.
As the latest casualty of the downturn in the UK’s automotive industry, LDV has not made a van since December and has not made a profit for four years. 850 jobs at its Birmingham plant are now at risk, as too are the positions of 1200 dealerships and 4000 suppliers.
Source: Thomson Merger News