Adevinta ASA shares fell the most since March 2020 after people with knowledge of the matter said a consortium backed by Permira and Blackstone Inc. is reconsidering its pursuit of the European online classifieds company, threatening a deal that would have ranked among the year’s biggest buyouts.
(Bloomberg) — Adevinta ASA shares fell the most since March 2020 after people with knowledge of the matter said a consortium backed by Permira and Blackstone Inc. is reconsidering its pursuit of the European online classifieds company, threatening a deal that would have ranked among the year’s biggest buyouts.
Permira and Blackstone are planning to take the transaction back to their investment committees to discuss whether they still want to continue, the people said. The market outlook has gotten much worse since news of their bid first emerged in September, lessening their appetite for such a big bet, they said.
The buyout firms haven’t yet been able to bridge a gap on price expectations with the special board committee of Adevinta independent directors that’s reviewing the offer, according to the people. Adevinta’s shares fell as much as 13% in early trading, trimming their year-to-date gain to 37% and cutting the company’s market value to about $10 billion.
The investor group, which also includes the Abu Dhabi Investment Authority, hasn’t decided on its next steps and could still move forward with its bid, according to the people. Representatives for Permira, Blackstone, Adevinta and ADIA declined to comment.
Oslo-based Adevinta confirmed in a Sept. 21 statement that it had received a non-binding takeover proposal from a consortium led by Permira and Blackstone after Bloomberg News revealed their interest. The company’s largest shareholders, eBay Inc. and Norwegian media group Schibsted ASA, expressed their support for the private equity transaction and would retain part of their stakes if it goes ahead, according to the statement.
The escalating war between Israel and Hamas has been hitting global stock markets, adding an extra layer of concern for investors. The Euro Stoxx 600 Index has declined almost 4% in October. There are also worries that central banks will continue to hike interest rates in the coming months to fight persistent inflation.
–With assistance from Silas Brown, Michelle F. Davis and Ryan Gould.
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