PE firms bail out of NXP
Some of the private equity firms which bought NXP in 2006 are to sell 25 million NXP shares.
The PE firms are KKR, Apax, Silverlake, Bain and Alpinvest.
The shares being sold represent 9.8% of outstanding shares in the company.
With its shares at $38 where they are now, NXP has a market cap of $9.5 billion.
When KKR &Co bought the company in 2006, it did so at a valuation of $9.4 billion which made the shares worth $26.
In February this year the PE companies sold 30 million shares for around $30 each,
In March this year they sold another 25 million shares.
In August 2010, at the first public sale of shares since the 2006 takeover, the PE consortium sold 34 million shares for $14 each.
In March 2011 25 million shares were sold when the share price was around $27.
When the PE companies bought NXP in 2006 they loaded up the NXP balance sheet with $6 billion of debt to help defray the purchase cost. After six years, the debt is still $3.3 billion.