Bridgepoint and AXA make €600m bid for Italian gaming company

The bid is said to value the company at six times its 2009 EBITDA. Bridgepoint would own 75 per cent of the group, and AXA 25 per cent.

Snai operates 900 branded betting shops and over 2,500 smaller gambling stalls, as well as the San Siro racetrack in Milan, which is not included in the bidding.

The two private equity firms have reportedly been granted a period of exclusivity, which gives them until next week to come up with a final offer for the company, although Snai could still opt to refinance through a bond issue instead.

Snai is not the only gaming company currently attracting private equity attention. US firm Blackstone has offered £300m (€332.56m) for UK gaming group Gala Coral, in return for a 40 to 60 per cent stake, according to reports. The US private equity firm is conducting due diligence on the company, which reportedly owes £2.5bn (€2.7bn). There are rumoured to be eight other private equity firms circling Gala, but Blackstone is the first to make a bid.

Copyright © 2009 AltAssets