Feeds

So who's going to buy Energis?

Rack of bidders lined up

  • alert
  • submit to reddit

The essential guide to IT transformation

Energis, the ailing alternative telco, has a rack of potential buyers lined, according to the weekend papers. The Sunday Telegraph names Worldcom as a bidder, while the FT reports that distress purchase/ private buyout firms Carlye Group, Kohlberg Kravis &Roberts, Providence Capital and Apax Partners have all tabled bids.

The FT also outs Peter Wilkinson, the guy who set up Planet Online - which he sold to Energis - and the founder of Sports Online, a company sold for the ludicrously large sum of £301m to BSkyB in April 2000 - i.e- a couple of months afterthe height of dotcom madness. He's supposed to be locked in with advisors UBS this weekend prepping an offer.

Wilkinson is the major force behind InTechnology, an enterprise data storage reseller/distie which is quoted on the stock market. He is on the look-out for cheap data hosting centres, according to the FT, which says he tabled an offer worth 17p a share recently for Telecity. The offer was rejected, the paper reports.

Energis' former parent company and still major shareholder, the National Grid, is unwilling to pump any more money into the business, which is not exactly a vote of confidence.

But Energis is, in the UK at least, a real business with real customers - as witnessed by the interest from trade and financial bidders. However, it carries a rack of debt on its books, accumulated through an ill-judged £1bn European buying spree (hindsight is not such a wonderful thing).

The company has gone into rapid retrenchment mode, last month cutting or selling off the European ops and 400 jobs. This follows 350 job cuts announced last November. But the move is too little, too late to meet its payment schedule to debt bondholders, who are owed £565m in total. They need squaring off, and this is perhaps easier said than done, especially if there are only low-ball bids on the table.

Energis, among other things, provides the Web hosting infrastructure for Freeserve, the UK's biggest ISP. This contract is almost certainly in its dying days; fortunately, the company is to provide a similar service for AOL in the UK. ®

Related Stories

VC firm rumoured stalking Energis
Energis culls 400 jobs
Energis poised to flog Euro ops

The essential guide to IT transformation

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Broadband slow and expensive? Blame Telstra says CloudFlare
Won't peer, will gouge for Internet transit
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Best practices for enterprise data
Discussing how technology providers have innovated in order to solve new challenges, creating a new framework for enterprise data.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?