International edition
July 28, 2021

It has raised us$ 750 million

Permira sells Galaxy shares

(Hong Kong).- European private equity firm Permira has raised us$ 750 million by selling around half of its stake in Macau casino operator Galaxy Entertainment Group, two sources with direct knowledge of the deal said. The widely expected deal, struck this week, was Permira's second sale of Galaxy shares in less than a year.

T

he latest sale takes Permira's total gains to more than 60 percent on its original investment in Galaxy in 2007, profiting from the boom in Macau's gaming industry in recent years.

Permira sold 278.8 million Galaxy shares at us$ 2.7 each, putting the total deal value at us$ 754.2 million, the sources said, speaking on condition of anonymity because they were not authorised to talk publicly on the matter. It sold the shares at a 4.1 percent discount to Monday's close of us$ 2.82.

Permira has raised around us$ 1.37 billion from the sales on Tuesday and last September, and it still holds a stake of approximately 6 percent valued at about us$ 734.8 million at current market prices. The buyers were a small group of investors, with one investor alone taking up the majority of the stock offered, the source added.

The deal took place the day after Galaxy reported a ninefold surge in first-half profit. "Risk appetite is higher now than at the beginning of the summer, but investors are being selective," one of the sources said.

Permira declined to comment. The Galaxy investment has been hugely profitable for Permira, which invested us$ 841.9 million in 2007 for a 20 percent stake in the casino company. A shareholder had agreed to sell about 280 million of its shares, Galaxy said in a statement, without identifying the seller.

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