Investment Corporation Dubai ( ICD) has teamed up with private equity group Blackstone to buy British media group Informa, news reports said.
Providence Equity Partners, Carlyle and Hellman & Friedman have been working to buy the business publisher and events company in a £3.2 billion (Dh23bn) deal that would be the largest private equity buy-out since the credit crunch began, the The Financial Times reported.
But Hellman & Friedman has walked away from participation, the report said , adding that due diligence began yesterday on a second approach involving the Dubai World Trade Centre , one of the largest events organisers in the Middle East, which is seeking to buy the IIR conference and events division of Informa, the report said.
A spokesman of Dubai World Trade Centre told Emirates Business that "we have no further comment and at this point it is speculation." Meanwhile, efforts to contact officials of IIR Middle East were unsuccessful.
Informa said it had given the second potential bidder access to information needed to carry out due diligence on Informa's accounts and managers. It released a statement after what it considered misleading press reports saying there had been no contact with any other parties, news report said.
Earlier this month, Peter Rigby, Chief Executive, said that Providence Equity LLP, The Carlyle Group and Hellman & Friedman had approached Informa on June 26, with a proposal to acquire the existing share capital of Informa at a price of 506 pence per ordinary share.
He said the "talks are continuing with the consortium and a further update will be made in due course."
Informa has a strong events business, which account approximately 37 per cent of Group revenues and 33 per cent of adjusted operating profit.
"Our Middle East and Far East operations continue to achieve significant growth. Our Dubai conference business has grown its turnover by 32 per cent driven by a 28 per cent increase in sponsorship revenue. To date we have held 18 exhibitions in these regions with growth of 37 per cent in revenue. Despite being venue bound, Arab Health, now in its 23rd year, grew revenues by 21 per cent and Cityscape Abu Dhabi in its second year grew by 66 per cent. Momentum for next year across all our exhibitions is encouraging with re-sign levels already over 36 per cent," said Rigby.
Meanwhile, media reports said yesterday that ICD is seeking a multi-billion dollar loan for general corporate financing, five bankers who have been approached by ICD told Reuters .
ICD would seek to raise $6 billion in the syndicated loan in the next week or so, one of the bankers said.