AFR Opinion: Bain Capital’s big conundrum with a Virgin Australia float

[HS-TQE]

The authors not only speak of Virgin Australia, they also speak of fellow Bain Capital subsidiaries Boost Juice and Betty Burgers (operated by Retail Zoo Pty Ltd).

However, they speak of VA 1.0's time on the ASX

While the industry backdrop is helpful, Virgin Australia 2.0 would just need to convince investors it would work better as a listed company this time around. It would be a straightforward pitch; gone is the constipated full of cash-strapped strategic investors, the mammoth debt load and loss-making international operations, which combined brought the airline undone after 20-years on the ASX-boards.

IMO, Authors also forgot the TigerAir and Virgin Australia Regional (RPT) operations, both were also loss making and contributed at time towards VA 1.0's filing.

Bain Capital’s big conundrum with a Virgin Australia float

The IPO market is on life support, but there’s another reason Bain Capital’s treading so carefully with Boost Juice and Betty’s Burgers owner Retail Zoo.

www.afr.com

 

[moa999]

While VA had issues late in it's listed life,

If you look at the share price from the time of Virgin Blue's IPO till final death, the trend was never great.

 

[jakeseven7]

Personally I'm very interested in seeing VA2 listed so we can have a good look under the bonnet at all the details that are being buried right now! And we can have our resident AFF experts tell us what it means

 

[RooFlyer]

we can have our resident AFF experts tell us what it means

Well, being a private equity float, (and as a former investment banker) I can already tell you what it means:

* They will have plumped up the business ready for sale. Blue skies ahead!

* They will squeeze the P/E multiple till the pips squeak

* You'll see the words 'Caymen Islands' a few times in the footnotes

* The book build will be the most entertaining part - and you won't see any of that!!

* Don't expect any Australian residents amongst the principals after float, if the Myer float is any guide.

...

 

[RooFlyer]

From the Oz on-line this evening:

Bain boss says Virgin float delayed amid volatile market

It'll be paywalled, but some snippets:

Bain managing director Ryan Cotton has told a confidential Virgin Australia staff briefing that the airline’s planned ASX float was being hampered by volatile financial conditions.

Mr Cotton, who is also the airline’s chairman, flew in to Australia to speak with management and on Wednesday told staff that “IPO markets are effectively closed”.

Despite a “really strong quarter”, the timing of a float was outside Bain’s control, he added. “It will be unlikely to happen this year, but within the next two or three years, that’s our goal,” Mr Cotton told staff. “For the residual part of this year is nearly inaccessible for reasons that have nothing to do with us but the state of financial markets.”

 

[Pele]

Pfft volatile markets. That's a throw away line. They are still yet to achieve dot point number 1 from your post #4.

 

[AIRwin]

Bain has sold Boost Juice and Betty's Burgers:

Adamantem to swoop on Boost Juice, Betty’s Burgers owner

The buyout firm has purchased a majority stake in the Boost Juice, Betty’s Burgers owner that values the company at around $350 million.

www.afr.com