LONDON -(Dow Jones)- The sale of Caudwell Group, which includes the Phones4U mobile phone retail business, is expected to be completed within the next six months according to John Caudwell, chairman and chief executive of the company.
Speaking in a one-on-one interview with Dow Jones Newswires, Caudwell said there has been strong interest in the business, which also includes the Dextra accessories business and the 20:20 logistics unit, and that the list of bidders has been narrowed down to a shortlist.
Caudwell declined to name the bidders for the Caudwell Group.
Suitors for Caudwell include U.S.-based buyout houses The Blackstone Group and Kohlberg Kravis Roberts & Co., as well as European-based private equity firms Permira, Apax Partners & Co. Ltd., and BC Partners, people familiar with the matter said.
These firms have strong backgrounds in telecoms investment.
Caudwell's comments followed strong 2005 results which included 15% growth in revenue to GBP2.12 billion and earnings before interest, taxes, depreciation and amortization, or EBITDA, of GBP161 million.
Earnings before interest, taxes and amortization, or EBITA, notched GBP149 million.
Caudwell said: "I expect a great 2006. I'm very comfortable about 2006 and we will continue to take market share from our competitors."
Caudwell said the company was "riding high" in 2005 benefiting from its efforts to strengthen its brand and management team.
He said despite this strong performance the company still expects "stellar" growth in 2006, but not at the same rate recorded in 2005.
Caudwell Group will open 100 new Phones4U stores over the next two years. John Caudwell said that these stores will be opened in the U.K. but the company is also considering a move into continental Europe. However, he said international expansion isn't "high on the agenda."
Caudwell said that 30% of all third-generation, or 3G, contracts in the U.K. are sold by Phones4U.
Company Web site: http://www.caudwellgroup.com
-By Nic Fildes, Dow Jones Newswires; 44-20-7842-9264; nicolas.fildes@dowjones.com
(END) Dow Jones Newswires "
Posted to the site on 19th January 2006
Posted to: www.cellular-news.com/story/15658.php