Reuters: Private Equity: UPDATE 1-Talanx, KSPG set to announce IPO in May -sources

Reuters: Private Equity Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-Talanx, KSPG set to announce IPO in May -sources May 4th 2012, 16:05 Fri May 4, 2012 12:05pm EDT * Kolbenschmidt (KSPG) IPO to be unveiled next week -sources * 50 pct KSPG stake for sale worth about 500 mln eur-sources * Talanx set to announce IPO in late May -sources * Talanx to IPO 25-30 pct stake, worth 1 bln eur -sources (Adds detail, background) FRANKFURT, May 4 (Reuters) - German insurer Talanx and car parts maker Kolbenschmidt Pierburg are set to announce their stock market listings later this month, sources familiar with the transactions said. Stock markets have been on the rise since the beginning of the year and bankers say the market volatility is low enough for IPOs. Fears about the euro zone debt crisis and the U.S. economy have eased, prompting more companies to tap the public markets after being effectively shut out for the last few months. Kolbenschmidt Pierburg (KSPG) , owned by defence group Rheinmetall, is likely to be the first in line, with its intention to float expected to be published on Monday or Tuesday next week, several people familiar with the matter said. Germany's third-biggest insurer Talanx is likely to officially announce in the last week of May its plan to float on the stock exchange, two different sources said. Separately, industrial conglomerate Evonik may on May 25 announce a planned listing. However, it remains unclear if the RAG Foundation, which owns a 75 percent stake in Evonik, will put the flotation on ice given depressed valuations in the chemical sector. A final decision on the IPOs, including the possible volumes and pricing, will depend on market conditions. Despite the uppick since the beginning of the year, bankers caution that an external shock like a renewed deterioration in the European debt crisis may scupper plans. "However, some companies have put so much work into IPO preparations that they are keen to push the button even if markets turn out to be not absolutely perfect," a banker working on several transactions in Germany said. More activity is expected to come from private equity firms, as they look to exit investments, many of which date back to the buyout boom of 2006-2007. Germany may see a such deal with a third-quarter listing of chemicals group H.C. Starck, which is owned by Advent and Carlyle, bankers said. The IPO of Kolbenschmidt is likely to value the company at around 1 billion euros ($1.3 billion), with about 50 percent of the shares being sold to investors, the people said. The unit specialises in emissions components as well as pistons, engine blocks and bearings. The Talanx flotation will likely have a volume of almost 1 billion euros, the sources said. As Japanese insurer Meiji Yasuda Life would also exchange convertible bonds worth 300 million euros into shares, Talanx would need to raise only 600-700 million euros on the market, bankers said. The insurer is aiming to list 25-30 percent of its shares four weeks later in a deal that could value it at about 4 billion euros, the sources said. This could make it a candidate for inclusion in Germany's midcap index MDax. Talanx is hoping that investors value it in line peers like Allianz which trades at 80 percent of its book value. However, investors will also look for a so-called IPO discount of about 10 percent, the sources said. The book value of Talanx shareholder's equity stood at 5.421 billion euros at the end of 2011. Talanx declined to comment. Rheinmetall was not available for comment. ($1 = 0.7603 euros) (Reporting by Arno Schuetze, Alexander Hübner and Jonathan Gould) Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions