March 16 (Reuters) – Finnish lift maker Kone Oyj is in talks to buy TK Elevator, which has been preparing for an initial public offering, Bloomberg News reported on Monday, citing people familiar with the matter. TK Elevator’s owners have been seeking a valuation of as much as 25 billion euros ($28.74 billion), including debt, […]
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Kone in talks to acquire rival TK Elevator, Bloomberg News reports
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March 16 (Reuters) – Finnish lift maker Kone Oyj is in talks to buy TK Elevator, which has been preparing for an initial public offering, Bloomberg News reported on Monday, citing people familiar with the matter.
TK Elevator’s owners have been seeking a valuation of as much as 25 billion euros ($28.74 billion), including debt, in any transaction, the report added.
Kone aims to reach a deal as early as the coming weeks, the report said, adding that TK Elevator’s owners are continuing work on a potential listing alongside negotiations about a sale.
According to the Bloomberg report, Advent International and Cinven – the owners of TK Elevator – have been working on a planned IPO, but recent volatility in equity markets has made a sale more appealing.
Cinven, Advent, Kone, and TK Elevator declined to comment when contacted by Reuters.
Reuters reported last year that TK Elevator’s owners were weighing the United States as a location for a potential IPO. Sources had said the business would likely be valued at more than 20 billion euros.
($1 = 0.8700 euros)
(Reporting by Heera Hari in Bengaluru; Editing by Maju Samuel, Shailesh Kuber and Sumana Nandy)