The buyout firm Permira has lost its 75% stake in Kiekert, the troubled German supplier of locking systems to the automotive industry. A new agreement reduces Kiekert’s debt facilities from €290m to €150m, with the remainder being transferred into equity, to be held by a consortium comprising the banks Morgan Stanley and Deutsche Bank, as well as the hedgefunds Silverpoint and Bluebay.
The former shareholders have apparently also agreed to give up €145m of loans granted to Kiekert.
According to earlier reports, Morgan Stanley and Bluebay will hold 60% and Deutsche Bank and Silverpoint will hold the remaining 40%. It appears that if Permira had not agreed to the deal, the banks could have called for their debt to be serviced and ultimately declared Kiekert insolvent. Previous reports claimed that Permira had appointed the investment bank Drueker & Co to sell its stake in Kiekert.
It was furthermore agreed that the banks would provide €40m of fresh capital, €20m of which will be equity and €20m will be new debt facilities.
In 2000, Permira (formerly known as Schroder Ventures) had acquired a majority stake in Kiekert after completing a tender offer taking the total value of the acquisition to US$428m.