Reuters – CVC Appoints Banks for Belgium Offering

Private equity group CVC Capital Partners has appointed nine banks for its planned sale of 25 to 30 percent of Belgium’s postal service bpost on the stock market, Reuters reported. The flotation, expected in the coming months, would be the first sizeable initial public offering in Brussels since biotech firm Movetis raised 85 million euros ($109 million) at the end of 2009 and the largest since zinc smelter Nyrstar raised 1.74 billion euros in 2007.

(Reuters) – Private equity group CVC Capital Partners has appointed nine banks for its planned sale of 25 to 30 percent of Belgium’s postal service bpost on the stock market, a source familiar with the company’s thinking said on Thursday.

The flotation, expected in the coming months, would be the first sizeable initial public offering (IPO) in Brussels since biotech firm Movetis raised 85 million euros ($109 million) at the end of 2009 and the largest since zinc smelter Nyrstar raised 1.74 billion euros in 2007.

In the past three years, investor uncertainty due to the euro zone crisis has made companies in Belgium reluctant to float on the stock market.

Belgian business newspapers De Tijd and L’Echo have both said CVC could raise between 550 million and 900 million euros from the flotation.

The source said bpost would be marketed to investors as a high-dividend stock.

De Tijd reported on Thursday that the company would pay out a dividend of 6 percent to 8 percent of its market valuation.

CVC has appointed JP Morgan, Nomura and BNP Paribas Fortis as joint global coordinators, and JP Morgan, Nomura, Morgan Stanley and UBS as joint international bookrunners, the source said.

BNP Paribas Fortis, KBC and ING Belgium have been appointed joint Belgian bookrunners, the source said, while Belfius and Royal Bank of Canada have also been appointed to help with the sale.

CVC declined to comment.

The private equity group owns 50 percent minus one share in bpost.

The Belgian state, which owns the rest, has said it plans to sell around 1 billion euros of assets this year to keep public sector debt below 100 percent of gross domestic product. It has declined to say what it planned to sell.