
US-based private equity firm Bain Capital is said to be considering making another bid for UK-based component supplier TI Automotive, reports The Sunday Times. Sources have told the newspaper that the bid could value the company at around GBP1.2 billion (USD1.84 billion). However, the people said that it was not certain that Bain would make a formal offer unless an agreement over pricing is reached.
Significance: This would be the third bid for TI Automotive that the private equity firm would have made in the past few years. The investment fund had originally been one of three investors which were interested in taking on the business from another fund, Oaktree Capital, during 2011. After this bid failed to materialised, Bain made another approach during late 2013, although its bid was considered too low and talks again stalled. However, Oaktree is thought to be keen to sell, having last year hired advisers to explore a potential flotation or sell the business, which led to talks with Cooper-Standard. Since then Oaktree has realised a dividend of USD435 million after arranging a USD1.25-billion loan. It remains to be seen whether the two funds can reach a deal for the company, which manufactures fluid systems on this occasion or whether Oaktree will hold on to the business which it has had an interest in since 2007.