Nordic buyout shop IK Investment Partners is the preferred bidder for the Carlyle Group’s company formation firm Offshore Incorporations HK Ltd., Reuters reported. Affinity Equity Partners and Bain Capital also made final bids for Offshore, which specializes in company formation in Anguilla, Bahamas, British Virgin Islands and Cayman Islands, Reuters said. Bids are believed to have come in between $250 million and $300 million.
(Reuters) – IK Investment Partners, a Nordic private equity player, is the preferred bidder for Carlyle Group’s [CYL.UL] company formation firm Offshore Incorporations HK Ltd, two sources with knowledge of the matter said, with the bid expected to fall within the $250-300 million range.
The potential deal comes during a hot streak of global dealmaking for the Washington-based private equity giant. The latest buyout deal Carlyle is said to be involved in is the purchase of Amsterdam-based private equity investor AlpInvest Partners.
Media reports said Carlyle was also among the firms interested in funding Hana Financial Group Inc’s (086790.KS) $4.1 billion takeover of Korea Exchange Bank (004940.KS), offering more than 1 trillion won ($865.7 million).
Affinity Equity Partners and Bain Capital also made final bids for Offshore, which specialises in company formation in Anguilla, Bahamas, British Virgin Islands, and Cayman Islands, among other locations, according to its website.
Bids for Offshore were believed to have come in at $250-300 million, or 10-12 times EBITDA, according to previous reports.
Chinatrust Commercial Bank and Taipei Fubon Bank were backing all three sponsors, while ING was backing IK Investment Partners, the sources told Basis Point, Thomson Reuters’ loan reporting group.
The sources declined to be named as they were not authorised to speak publicly about the deal. Sell-side advisor Morgan Stanley (MS.N) and Carlyle declined to comment when contacted by Basis Point.
Offshore Incorporations’ EBITDA last year was around $25 million, which would put the debt at about $137.5-150 million. Leverage from the Taiwan banks is said to range from 5.5 to six times EBITDA.
Chinatrust was also in talks to provide a staple financing, sources said. (Reporting by Wendy Mock, writing by Joseph Chaney; Editing by Michael Flaherty and Chris Lewis)