Travelex Buyer Shetty Said to Seek $600 Million Acquisition LoanDinesh Nair and Stefania Bianchi
Bavaguthu Raghuram Shetty, the entrepreneur buying a controlling stake in Travelex Holdings Ltd., is seeking about $600 million to finance his share of the deal, three people with knowledge of the matter said.
Shetty is in talks with Qatari banks about the loan and expects to appoint an international bank as lead arranger for the transaction, the people said, asking not to be identified as the information isn’t public. The financing may be completed in the next two weeks, according to the people.
Apax Partners LLP, one of Europe’s largest private-equity firms, agreed in May to sell its majority stake in the chain of retail currency exchanges to Shetty and entities linked to Saeed Bin Butti Al Qubaisi’s Abu Dhabi-based Centurion Investments. The deal is worth about 500 million pounds ($843 million), two people with knowledge of the matter said last month.
Lloyd Dorfman, who founded Travelex 38 years ago, will remain a shareholder and the company’s president. Apax, which had been poised to take Travelex public in an initial public offering, bought control of the chain in 2005 in a deal that valued the company at about 1.1 billion pounds ($1.85 billion).
Travelex will be run separately from UAE Exchange, the currency-exchange and money-transfer company Shetty founded, the companies said in a joint statement last month. A spokesman for Shetty declined to comment.
Travelex, which has more than 1,500 outlets and 1,300 cash machines in 27 countries, sold assets including a card-program management unit to MasterCard Inc. in 2011 and a business-payments unit to Western Union Co. to focus on its consumer business.