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Terra Firma scraps Deutsche Annington IPO amid ‘adverse conditions’

3 Jul 2013

stock market_lrgGuy Hands’ private equity firm Terra Firma has decided against floating German property group Deutsche Annington due to “persistent adverse market conditions.”

The decision comes after Terra Firma failed to fill order books for the IPO, which was priced at €18 to €21 per share and expected to raise €1bn for a 25 per cent stake including €400m worth of new shares issued by the company.

“You could place the shares for €17, but I’m not sure whether Terra Firma would agree to that,” a person familiar with the situation told Reuters.

Global stock markets have recently experienced a sharp decline after Federal reserve chairman Ben Bernanke indicated that the quantitative easing programme would likely end next year.

Deutsche Annington completed its refinancing that included a €550m investment from Terra Firma last November.

Earlier in 2012 AltAssets reported that Deutsche Annington could be seeking an IPO in 2013, while the FT said in January that Guy Hands aimed to return €3bn to investors within the next 12 to 18 months before launching a new fund.

Terra Firma has recently secured a new trial for its lawsuit alleging that Citigroup tricked it into overpaying for EMI Group.

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