September 21 2007, 14:20

Lion Capital to obtain loan for "Nidan" purchase

British investment foundation Lion Capital announced the purchase of "Nidan" juice company in August; it will obtain syndicated loan for this deal. In August the joint release came out saying that Goldman Sachs would organize the loan. "The sum of loan may total $350-450 mln", a banker, familiar with the process of syndication preparation, told to "Vedomosti". But this is not the whole sum which Lion Сapital is to pay for "Nidan": the foundation will partially finance the deal by means of own funds. In the beginning of negotiations "Nidan" was estimated to be worth to $650 mln; the top manager of Russian food company specifies. But this sum might further decrease. Andrey Yanovskiy, the General Director of "Nidan", earlier estimated his company to be worth $800 mln. in his interview to Interfax.

Goldman Sachs, Lion Capital and "Nidan" made no comments. SPV-company has been created to get 100% of "Nidan" shares. This company also obtains the syndicated loan, the representatives of two investment banks (familiar to the syndication process) informed "Vedomosti". Lion Capital will own a part of this company's shares, the present shareholders of "Nidan" will own the other part. Maxim Arefyev, the Executive Director, Department of Investment-banking management, "Troyka-Dialog" told in August that "thanks to the deal structure, suggested by Lion, "Nidan" shareholders will be able to share the profits of the future growth of the company". On the 20th of September he made no comments. SPV-company is created exactly to obtain the syndicated loan: banks require 100% ownership of the purchased company by the borrower, according to the explanations of financial specialist informed about the deal structure. Actually it is the first example of the classical LBO in Russian practice, he says. Although there have already been cases of leveraged buy-out in Russia, during "Nidan" purchase the banks - participants of the syndicate will be able, for example, to choose one of three loan yield depending on the risk level.