Permira and Blackstone Have Their Eye on a Steal
The PE firms are attempting a jumbo buyout of classifieds provider Adevinta with the backing of strategic shareholders. It’s a big test of protections for minority investors.
Photographer: Justin Sullivan/ via Getty Images
Buyout firms Permira and Blackstone Inc. have found an alluring opportunity in online classified ads for homes and secondhand goods. Their interest in buying Adevinta ASA is more than a sign that leveraged buyouts are alive in an era of costlier debt. It’s the latest test of whether minority shareholders can avoid being harmed by alliances between private equity and larger fellow investors.
The protagonists here are notable. Online auctioneer eBay Inc. and Nordic classifieds firm Schibsted ASA each hold stakes of around 30%. They have been reducing their exposure. Permira funds bought 10% from eBay in 2021 only to see the stock price tumble. Taking control at a lower price would help redeem this loss-making investment.