The financial banks used by Emap may offer to provide funds to potential bidders trying to raise money to buy the publishing group. [ALL]
The financial banks used by Emap may offer to provide funds to potential bidders trying to raise money to buy the publishing group.

The practice is known as stapled financingbecause the loan terms are literally stapled to bid documents. It is already commonplace when private equity owners are selling on assets.

If one of the financial institutions that Emap regularly does business with decides to offer stapled loans, it is likely to be offered in three segments, one for each of the consumer magazine, trade magazine and radio divisions.

Few buyers are understood to be interested in acquiring the company as a whole.

An Emap spokesperson said: 'There has been no sudden emergence of stapled finance, it is a commonly available alternative in any transaction where lenders familiar with the assets provide the buyer with conventional finance.'

Emap reiterated that, contrary to several newspaper reports, it would be the banks rather than Emap itself that would organise the loan.

Emap, which owns Magic 105.4 FM and Kiss 100 FM as well Broadcast, currently banks with France's BNP Paribas, Citigroup, Barclays and Royal Bank of Scotland.

Around 30 potential buyers are said to have expressed an interest in buying either the whole group or separate divisions.

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