Cinven Said to Consider Paying Itself Dividend on Host EuropeKiel Porter
Cinven, one of Europe’s largest buyout firms, is in early talks with lenders about adding debt to its Internet domain and hosting company Host Europe Group Ltd. to pay itself a dividend, said a person with knowledge of the matter.
Cinven, which bought the British-German company for 438 million pounds in ($678 million) in August 2013, will recoup a significant amount of its original equity investment if the transaction proceeds, said the person, who asked not to be identified because the information is private.
A dividend recapitalization involves a buyout firm borrowing money against a company it owns, and repaying it from future cash flow. Cinven is also in the process of paying itself a dividend on another of its companies, Italian space rocket business Avio SpA.
Since buying Host Europe, Cinven has built the business with more purchases, most recently Germany’s Intergenia Holding GmbH in January. Host Europe, based in Uxbridge, England, offers customers Internet domain registration as well as shared and managed hosting for online activities, according to its website.
A spokeswoman for Cinven declined to comment, while a spokeswoman for Host Europe didn’t respond to telephone requests seeking comment.
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