Buyout house BC Partners has sold its remaining stake in Swedish cable TV operator Com Hem, offloading 33.9 million shares in a transaction valuing the company at SKr3.7 billion ($419 million; €384 million), according to a statement from the firm.
BC Partners sold the stake – equal to around an 18.5 percent interest – to listed Swedish media conglomerate Kinnevik, who agreed to the sale on 27 April at a price of SKr110 per share.
The sale of the remaining stake brings the overall return to more than 2x money on invested capital for investors in BC European Capital IX, a source with knowledge of the matter told Private Equity International.
This final sell down is the fourth sale of shares by BC Partners since the company was floated on the Nasdaq Stockholm in 2014 at an IPO price of SKr58 per share and a market capitalisation of SKr11.5 billion.
In February the firm sold 25 million shares via an accelerated book build at a net price of SKr91 per share.
BC Partners first invested in Com Hem in 2011 in a transaction valuing the company at SKr16 billion, according to the firm’s website.
Com Hem was one of the largest equity investments made by BCEC IX, a 2011-vintage fund which closed on €6.7 billion. That fund was delivering an internal rate of return of 17.48 percent as of December 2016, the source said.
BC Partners will be keen to return capital to investors as it continues to seek capital for its tenth buyout fund, which is targeting €7 billion.
So far the fund, which came to market in early 2016, has gathered more than €4 billion, according to PEI data, counting Los Angeles City Employees’ Retirement System, Teachers’ Retirement System of Louisiana, Tennessee Consolidated Retirement System, and Korea Investment Corporation among its investor base.
The source confirmed that BC Partners has held a first close on the vehicle and the fund has been activated.
BC Partners declined to comment on fundraising progress or returns.