March 16 (Reuters) – Finnish lift maker Kone Oyj is in talks to buy TK Elevator, which has been preparing for an initial public offering, Bloomberg News reported on Monday, citing people familiar with the matter.
TK Elevator’s owners have been seeking a valuation of as much as 25 billion euros ($28.74 billion) including debt in any transaction, the report added.
Kone aims to reach a deal as soon as the coming weeks, the report said, adding that TK Elevator’s owners are continuing work on a potential listing alongside negotiations about a sale.
According to the Bloomberg report, Advent International and Cinven, the owners of TK Elevator have been working on a planned IPO, but recent volatility in equity markets has made the owners more open to a potential sale instead.
Cinven, Advent and TK Elevator declined to comment on the report when contacted by Reuters, while Kone did not immediately respond.
Reuters reported last year that TK Elevator’s owners were weighing the United States as a location for a potential initial public offering. Sources had told Reuters at the time that the business would likely be valued at more than 20 billion euros.
($1 = 0.8700 euros)
(Reporting by Heera Hari in Bengaluru; Editing by Maju Samuel and Shailesh Kuber)
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