EMAP ARTICLE

Emap could offer loan to secure sale
By Dominic White
Last Updated: 1:04am BST 11/09/2007
Emap's lending banks have indicated that they could offer a loan to potential buyers to aid the sale of the £1.9bn magazines and radio group.
FHM owner Emap is keen to secure a sale despite the credit crunch
One of the groups circling Emap has asked whether the owner of FHM magazine and Magic radio station could offer so-called "stapled financing" amid fears that the liquidity squeeze in the credit market might put its normal lenders off backing such a large takeover.
The radio-to-magazines company, which has eight relationship banks including BNP Paribas, Society Generale, ABN Amro, Citigroup and Royal Bank of Scotland, indicated to the potential bidder that some of its lenders could help with finance if necessary.
Emap put itself up on the block in July and is keen to secure a sale despite the squeeze in the credit market.
Stapled financing, whereby a vendor's banks offer a loan to the company's buyers, is often used by private equity owners selling on assets but is increasingly common among listed companies eager to secure deals.
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Emap has attracted initial interest from more than two dozen trade buyers for all three of its divisions - business to business publishing, the £700m consumer magazines group, and radio, valued at £400m.
They include several foreign companies, including magazine groups Mondadori, Lagardere, Hachette-Filipacchi and, reportedly, the Finnish group Sanoma.
Guardian Media Group has also expressed an interest as have several private equity houses, including Apax Partners.