(Bloomberg) -- Partners Group Holding AG is considering a launch of the initial public offering of German metering company Techem GmbH as soon as September, according to people with knowledge of the matter.
The Swiss buyout firm has been working with its advisers and has sounded out investors on the potential listing of Techem in Frankfurt, the people said. Partners could seek a valuation in excess of €7 billion ($7.6 billion) for the German firm in an IPO, said the people, who asked not to be identified as the information is private.
Partners has been weighing options for its majority stake in Techem after it received a binding offer from TPG Inc., which became one of the main remaining bidders after KKR & Co. dropped out, Bloomberg News reported in April. The private equity firm hasn’t completely scrapped its plans on an outright sale and could still identify a buyer for the business, the people said.
The company plans to make a final decision in the coming weeks and details could still change, the people said. A representative for Partners declined to comment.
Techem, based near Frankfurt, was founded in 1952. The company makes equipment to measure consumption of water and electricity and monitor heating and cooling. Partners Group teamed up with Caisse de Depot et Placement du Quebec and Ontario Teachers’ Pension Plan, as well as Techem’s management team, to acquire the company for €4.6 billion in 2018.
While the market for IPOs in Europe is gathering momentum, portfolio managers remain selective about which companies to invest in. Issuers also have to contend with increased volatility on the back of a brief but broad-based asset selloff earlier this week.
Private equity sponsors, meanwhile, are facing increased pressure from their own investors to monetize assets and return cash back.
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