LONDON, Oct 24 (Reuters) - Private equity firm Blackstone is preparing to float theme park operator Merlin Entertainments next year, hoping to take advantage of buoyant equity markets, a source familiar with the situation said.
The U.S. buyout house has called in Citigroup, Goldman Sachs, Deutsche Bank, UBS and Nomura to advise on the initial public offering, which could value the business at around 2 billion pounds ($3.33 billion) and come early in 2010, the source said.
Merlin is the world's second largest theme park operator after Disney, owning the London Eye, Madame Tussauds and the Sea Life centres. Dubai International Capital (DIC) also owns 20 percent of the business.
Blackstone and DIC declined to comment.
As equity markets have stabilised, private equity firms have started to line up better-performing businesses for possible flotation in order to realise some cash from their investments.
Blackstone Chief Executive Steve Schwarzman said earlier this month the firm was evaluating the possibility of seven IPOs in addition to one -- Team Health -- already filed.
Blackstone is expected to remain a majority shareholder in the business after the float, with much of the capital going to finance new attractions, the source said.
($1=.6006 Pound)
(Reporting by Simon Meads; editing by Patrick Graham) Keywords: MERLIN/FLOTATION (simon.meads@thomsonreuters.com; +44 20 7542 9969; Reuters Messaging: simon.meads.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The U.S. buyout house has called in Citigroup, Goldman Sachs, Deutsche Bank, UBS and Nomura to advise on the initial public offering, which could value the business at around 2 billion pounds ($3.33 billion) and come early in 2010, the source said.
Merlin is the world's second largest theme park operator after Disney, owning the London Eye, Madame Tussauds and the Sea Life centres. Dubai International Capital (DIC) also owns 20 percent of the business.
Blackstone and DIC declined to comment.
As equity markets have stabilised, private equity firms have started to line up better-performing businesses for possible flotation in order to realise some cash from their investments.
Blackstone Chief Executive Steve Schwarzman said earlier this month the firm was evaluating the possibility of seven IPOs in addition to one -- Team Health -- already filed.
Blackstone is expected to remain a majority shareholder in the business after the float, with much of the capital going to finance new attractions, the source said.
($1=.6006 Pound)
(Reporting by Simon Meads; editing by Patrick Graham) Keywords: MERLIN/FLOTATION (simon.meads@thomsonreuters.com; +44 20 7542 9969; Reuters Messaging: simon.meads.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.