SIX Group considers bid for Allfunds, no offer imminent (updated)

Allfunds

23/01/2024 15:59

(Add share reaction, paragraph 3)
    By Amy-Jo Crowley, Oliver Hirt, Andres Gonzalez and Pablo
Mayo Cerqueiro
       LONDON, Jan 23(Reuters) - Swiss stock market operator
SIX Group is considering a bid for fund distribution company
Allfunds  ALLFG.AS , according to two sources with knowledge of
the situation, a move that could be complicated by the
difficulty of raising acquisition financing.   
    Allfunds management is expected to meet prospective bidders
next month, one of the sources said, while the other said no
offer from the Zurich-headquartered SIX was imminent.
    Allfunds shares rose as much as 9.5% after Reuters initially
reported the news and were last up 7.9% at 6.29 euros per share.
    Amsterdam-listed Allfunds is working with Goldman Sachs and
Citigroup on a strategic review that could lead to a sale and
has also attracted interest from private equity firms, two other
people with knowledge of the situation said. 
    Although conversations over the future of Allfunds are
preliminary, they may gain momentum during the first quarter
after it publishes its annual results in February, the two
sources said. 
    Funds including Advent, Brookfield, CVC and KKR have shown
an interest, two people familiar with the process said, but it
was unclear if any planned to pursue an offer. 
    Spokespeople for SIX, which is owned by around 120 banks, 
and Allfunds, declined comment. Advent, Brookfield, CVC and KKR
declined to comment. 
    None of the five sources could be named because the
discussions are not public.
    Some of them said SIX could face challenges in raising
financing for an acquisition. 
    It announced a net loss of up to 1.1 billion Swiss francs
($1.27 billion) for 2023, mainly because of impairments of its
stake in European payments provider Worldline  WLN.PA .  
    Euronext  ENX.PA , home to the Paris, Amsterdam and Milan
stock exchanges, made an aborted 5.5 billion euro ($5.97
billion) bid for Allfunds last year. 
    The board of Allfunds, which had a market capitalisation of
3.62 billion euros on Tuesday, said it had held talks with
Euronext but the terms of its proposal were "inadequate".  
    Allfunds, which provides funds access to a broad network of
financial institutions, has 1.3 trillion euros of assets under
administration through 860 distributor contracts and 17 offices
around the world. 
($1 = 0.8693 Swiss francs)
($1 = 0.9203 euros)

 (Reporting by Andres Gonzalez Estebaran, Amy-Jo Crowley, Oliver
Hirt and Pablo Mayo Cerqueiro. Editing by Anousha Sakoui and
Barbara Lewis)
 ((andres.gonzalez@thomsonreuters.com; +44 (0) 7551 790019;
Reuters Messaging:
andres.gonzalez.thomsonreuters.com@reuters.net))