Carlyle mandates Goldman Sachs to sell stake in Turkey's Penti - sources (updated)

Mavi Giyim Sanayi ve Ticaret

28/09/2017 17:28

(Adds details, background) 
    By Ebru Tuncay 
    ISTANBUL, Sept 28 (Reuters) - U.S. private equity firm 
Carlyle Group  CG.O  is looking to sell its 30 percent stake in 
Turkish lingerie and swimwear retailer Penti and has mandated 
Goldman Sachs  GS.N  to advise on the sale, three people 
familiar with the matter said. 
    The potential deal comes as appetite for Turkish assets has 
recovered after last year's failed coup. Despite chronic 
political worries, investors remain keen for companies that tap 
into Turkey's young, fast-growing population.  
    Penti's founders, who retained 70 percent of the company 
after Carlyle bought its stake in 2012, are also looking to sell 
down their holding and have also mandated Goldman Sachs as 
adviser, two of the people said. 
    Penti, which has more than 400 stores and a presence in some 
30 countries, sells hosiery, swimsuits and lingerie. The company 
said it was not considering a share sale, but confirmed it had 
mandated Goldman Sachs and London-based Dome Group to advise on 
investment opportunities. 
    "As of today, Penti has not taken any decision on an 
acquisition, stake sale, merger or a decision to initiate these 
processes," it said. "However, the company mandated Goldman 
Sachs and Dome Group to research market conditions and evaluate 
possible investment opportunities."  
    Spokesmen for both Carlyle and Goldman Sachs declined to 
comment. 
    While the due diligence has not yet started, private equity 
firms Turkven and Actera have both expressed interest in a 
potential acquisition, two of the sources said.  
    Turkven and Actera were not immediately available for 
comment. 
     
    DEMOGRAPHIC DIVIDEND 
    Once seen as a star emerging market, Turkey has lost some of 
its lustre thanks to concerns about politics under President 
Tayyip Erdogan, an increasingly authoritarian leader frequently 
at odds with the West. 
    Erdogan has cracked down on opponents following last year's 
failed coup. More than 150,000 people in the civil service, 
police, military and private sector have been sacked or 
suspended and some 50,000 jailed. Asset seizures since the 
crackdown have also given investors pause. 
    The government says such measures are necessary, given its 
multiple security threats. 
    For some, at least, those concerns have been trumped by 
Turkey's enviable demographics. Its population of 80 million is 
the youngest in Europe and, thanks to rising disposable incomes, 
keen to spend on smartphones, designer trainers and handbags.    
     
    In June, jeans maker Mavi Giyim listed in Istanbul after a 
$334 million initial public offering. Its shares have surged 16 
percent since.  
    Carlyle's 30 percent stake in Penti was worth around $100 
million at the time of the transaction in 2012, according to a 
separate source familiar with that deal.  
    Penti had revenue of 600 million lira ($168 million) and 
earnings before interest, tax, depreciation and amortisation 
(EBITDA) of 95 million lira, and is expected to reach 700 
million lira of revenue this year, the source said. 
    Last year Carlyle exited Turkish private school operator 
Bahcesehir Koleji and in 2014 exited an investment in Turkish 
health-care provider Medical Park. 
($1 = 3.5671 liras) 
 
 (Writing by Ezgi Erkoyun; Editing by David Dolan and Adrian 
Croft) 
 ((ezgi.erkoyun@thomsonreuters.com; +90-212-350 7051; Reuters 
Messaging: ezgi.erkoyun.thomsonreuters.com@reuters.net;)) 
 
Keywords: PENTI M&A/CARLYLE GROUP