Salt, Swiss telecoms group, targets $2.7 billion valuation in autumn floatation

Salt, the third-highest ranked telecom group of Switzerland, is readying for a Zurich stock market flotation in the autumn in a deal that could place the company at about 2.5 billion francs ($2.7 billion) in value, three people close to the matter said.

They also added that the French entrepreneur Xavier Niel is looking for an out after seven years of investment.

It is being reported that the company is expected to sell roughly 700 million Swiss francs ($757 million) worth of shares which will mainly include new shares from a capital increase. Credit Suisse, Goldman Sachs, Morgan Stanley, and BNP Paribas are organizing the flotation, they added.

Although a decision has not been taken yet, Salt has stated that the company and owners are contemplating various financing options, including an IPO. The company last year posted adjusted earnings before interest, tax, depreciation, and amortization of 421 million francs on revenues of 1 billion francs. Core earnings were down 3% and sales were up 2.5% in the first quarter.

The IPO could value Salt at roughly 2.5 billion francs, including debt, the people said.

Salt was bought by Xavier Niel from buyout firm Apax in the year 2014 for a sum of 2.8 billion Swiss francs. The telecom entrepreneur has since streamlined the business through deals (Salt’s sale of telecom towers to Cellnex) and has benefited from dividend payments.

Earlier this year, the company partnered with Swisscom, enabling it to provide fiber-to-the-home connections to 3 million customers by 2025.