European private equity firm CVC [CVC.UL] is resuming the sale of Swiss mobile telecoms company Sunrise and could hire a bank to advise on the deal by the end of the year, several sources familiar with the matter said on Thursday.
Sunrise, Switzerland’s second-biggest mobile operator, could be worth up to 4.9 billion Swiss francs ($5.2 billion), said the sources, who could not be named because the talks are private. CVC paid 3.3 billion Swiss francs for Sunrise in 2010.
The private equity firm is hoping that improving operational figures and buoyant equity markets will facilitate a deal this time round, having failed in its attempt to sell the business last year.
CVC is likely to to consider both a sale and a public listing of Sunrise in a so-called dual-track process, the sources said.
Sunrise and CVC declined to comment.
The Swiss company’s earnings before interest, tax, depreciation and amortisation (EBITDA) rose 5.7 percent year on year to 159.4 million Swiss francs in the second quarter.
Rival Swisscom (SCMN.VX), the country’s leading operator, currently trades at a multiple of eight times EBITDA, which could mean a value of up to 4.9 billion Swiss francs for Sunrise.
(1 US dollar = 0.9484 Swiss franc)
(Reporting by Freya Berry, Pamela Barbaglia and Sophie Sassarde. Editing by David Goodman)
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