Candover to sell Wood Mackenzie to Charterhouse

Candover to sell Wood Mackenzie to Charterhouse

Chairman of Wood Mackenzie, SIR George Mathewson is going to step down after the London-based private equity firm Candover has agreed to sell its energy-research unit Wood Mackenzie to Charterhouse, another London-based private equity company.

Speaking on the topic, SIR George Mathewson said, "Wood Mackenzie itself is a growth business, with very substantial growth prospects."

Candover, which provides energy research in about 93 countries and has offices in 12 cities globally, has decided to divest its controlling stake in the energy consultancy for £553 million.

The sale will assist Candover to generate £36.2m and will alleviate its fear of going bankrupt. 

It is worth mentioning here that last year the firm lost £215m in the course of plunging valuations of its assets.

Candover had been evaluating its alternatives after many of the businesses in its portfolio were tattered by the recent global recession.

According to an Oriel Securities analyst, Iain Scouller, the transaction would have a positive impact on Candover's balance sheet by cutting its net debt and relaxing market fears about bond agreements. 

Candover's UK casino operator, Gala Coral and Spanish theme park operator, Parques Reunidos, are struggling hard for existence. 

On the other hand, the London-based Charterhouse owns the pub company Barracuda; Levantina, a Spanish natural stone company; PHS, a support services business, as well as Vivarte, a French retailer.

According to the credit agency Standard & Poor's, European private equity firms will have to face hard times in refinancing an estimated $3.9 trillion debt that will mature over the next three years.

Shares of the company closed up 11.5 per cent at 300p.