3i promotes dealmaker to top job
Asset value dips to 279 pence a share at end March
By Simon Meads
LONDON, May 17 (Reuters) British private equity firm 3i Group promoted its investment head Simon Borrows to be chief executive on Thursday, charging the canada goose uk black friday former banker with turning around a business hit by a canada goose store series of poor deals in recession hit European markets.
Borrows, who founded the European operations of independent investment bank Greenhill Co, is an M expert and his appointment as CEO Canada Goose Online could intensify speculation about a related site sale of 3i cheap Canada Goose or, i n the absence of obvious buyers, a management buyout.
There has been speculation over the last year that 3i could attract a bidder or management buyout offer.
Borrows has canada goose factory sale been close to the company for two canadian goose jacket decades, working on the flotation of the business in 1994 and advising on some of its most significant deals, including the sale Canada Goose Outlet of budget airline Go to Easyjet.
The London listed private equity firm said Borrows would take up his job immediately, replacing Michael Queen who has been in the post for a little more than three years.
One of Canada Goose Parka Borrows first tasks will be addressing 3i Canada Goose Coats On Sale high operating costs canada goose clearance and some people canada goose familiar with the group say he will not shirk from tough decisions on jobs and global ambitions.
am also going to determine the best shape and investment strategy for the business, Borrows told reporters.
3i woes are canada goose coats on sale more acute than many of its crisis hit rivals, as it invested heavily in companies during Canada Goose online the peak of the buy out market, in mature regions or declining Western European markets such as Britain and Spain.
is a really tough situation. They need someone who really knows the organisation because it will arconserve require severe cost cutting. In particular, they will have to cut down on some canada goose clearance sale of their global ambitions, a banker familiar with the group said.
Queen had said in March he would quit following continued shareholder frustration at 3i poor share price performance and weak results from its buyouts business.
think this early canada goose uk shop clarification of the new CEO and cheap canada goose uk his mandate to address performance should be received well in share price terms, Oriel Securities analyst Iain Scouller said.
After early gains, 3i shares were virtually flat at 179.7 pence at 1438 GMT.
The firm said there had been another knock to net asset value the key measure for valuing its portfolio of companies in the six months to end March. Asset value per share was 279 pence, compared with 294 pence at the end of September and 351 pence a year ago.
Dissatisfied shareholders have clamoured for immediate action, canada goose uk outlet with some, including activist investors Laxey Partners, asking for 3i to sell businesses and return them the proceeds.
To placate shareholders, 3i will hand investors up to 20 percent of the proceeds from company sales as long as leverage remains less that 20 percent of net asset value. think they have bought a bit of time. A new chief exec is quite a big move and the return of capital is clearly giving some of the shareholders what they wanted, plus on top canada goose coats of that you have the much higher dividend, which has more the doubled, Oriel Scouller Canada Goose sale said.
But should measures canada goose black friday sale fail to narrow the wide discount to asset value, the speculation about a bid or management takeover will come back, Scouller said.
Borrows said the future buy canada goose jacket shape of 3i global activities were a priority. The group has expanded beyond its core European market to the United States, Asia and uk canada goose more uk canada goose outlet recently Latin America, setting up in Brazil just last year.
are, in the main, going to be playing to our more established strengths but we do have Canada Goose Jackets some very strong teams in one buy canada goose jacket cheap or two of those emerging markets, Borrows said.
But Borrows said he had no plans to change the three pronged business structure of private equity, debt management and infrastructure put in place by his predecessor Queen.