Private equity firm TPG Capital reportedly no longer participating in auction for a combined 77% stake in U.K. retailer Iceland Foods; Asda, Morrisons reported to be among those participating in second round of bidding

Allison Oesterle

LOS ANGELES , December 6, 2011 (Industry Intelligence) – According to an anonymous source who is familiar with the bidding process, private equity firm TPG Capital is no longer participating in the auction for a combined 77% stake in Iceland Foods Ltd., Reuters reported on Dec. 5.

Failed Icelandic banks Landsbanki and Glitnir, which are holding the auction, hope that the final price will value the entire Iceland Foods chain either at or above £1.5 billion (US$2.36 billion).

According to the anonymous source, rival bidders Asda Stores, Ltd., private equity firm Bain & Company, private equity firm BC Partners, and Wm Morrison Supermarkets Plc. have all made it through to the second round of bidding. They are expected to place their offers sometime around the end of January.

Under a shareholder agreement, Malcom Walker, the founder of the Iceland Foods chain, will win the auction if he manages to match the highest competing bid.
Walker and other managers hold a 23% stake in the Iceland Foods.

The primary source of this article is Reuters, London, England, on Dec. 5, 2011.

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