CPPIB paid 2.5% premium for Apax stake

Apax Europe VII recently exited Swiss mobile operator Orange Communications for $3bn.

The Canada Pension Plan Investment Board (CPPIB) paid a 2.5 percent premium for the Apax Europe VII stake it purchased last year.

CPPIB bought the fund stake from listed fund of funds Standard Life European Private Equity Trust (SLEPET). It assumed SLEPET’s £3.4 million in unfunded commitments, according to SLEPET’s interim management report for the period ended 31 December.

The sale generated roughly £21.8 million in proceeds for SLEPET.

Apax Europe VII is a 2007-vintage, $11.2 billion fund that invests in medium and large-sized pan-European buyouts. Targeted industries include consumer, financial and business services, healthcare, media, technology, and telecom and retail.

The fund recently led the take-private of Nordic IT company Evry for NOK16 ($2.13; €1.87) a share. The price represented a 53 percent premium to the volume-weighted average share price for the preceding six month period, Apax’s website disclosed.

In December 2014 Fund VII agreed to sell mobile phone company Orange Communications SA, which operates in Switzerland, to NJJ Capital, the holding company of French telecom entrepreneur Xavier Neil, for CHF 2.8 billion ($3 billion; €2.62 million). Apax initially acquired the company in 2012.

Last year the fund also exited TriZetto Corporation in a $2.7 billion all-cash deal. Apax initially invested $1.4 billion in the healthcare technology company in 2008 using Fund VII and its predecessor.

Fund VII was generating a 1.2x net multiple as of 31 March 2014, according to SLEPET documents.

Apax declined to comment.

CPPIB previously bought a stake in the fund from Michigan-based grant making organisation Charles Stewart Mott Foundation.