Deutsche Telekom has selected four private equity firms to take through to the next round – Apax Partners, TPG Capital, Hellman & Friedman, and Silver Lake Management.
Over the last couple of months a range of private equity and industry players have poured over the IM, interviewed management, engaged consultants, and submitted indicative bids for the business.
Industry sources estimate that up to 10 companies may have submitted preliminary bids as well as a number of industry players. Clearly showing the high level of excitement and interest around the asset.
It is believed that while Deutsche Telekom favours the sale of 30% of the Scout24 Group rather than the complete sale of the company.
The price at which the business will sell is anyone’s guess. The all time high valuation of the REA Group, Rightmove, Zillow and Trulia indicates that there is a strong appetite for this type of business. In addition there are not too many assets like this Europe let alone around the world for sale.
Industry speculation is that the business could be valued somewhere between euro 1.5 billion and 2 billion but as we all know, in a high demand auction the price could go higher.
Watch this space!