Mobile phone tycoon 'to net £1bn winfall'

Mobile phone tycoon John Caudwell looked set for a massive windfall today amid reports the sale of his business empire could net £1bn (€1.46bn).

The Phones4U boss put Caudwell Group up for sale in November so he could fulfil his ambition of sailing around the world.

The Sunday Times today said three private-equity bids worth around £1bn (€1.46bn) had been tabled and would be considered by Mr Caudwell this week.

The bids are said to have come from CVC Capital and Providence Equity Partners, Warburg Pincus, and Bain Capital and Nordic Capital.

Mr Caudwell is expected to enter exclusive negotiations with one of the bidders within the next few weeks, although he could pull out of the sale if he cannot agree a price.

Mr Caudwell set up the business with his brother in 1987 when mobile phones were virtually unheard of.

Earlier this year he said he would probably move into another venture after the sale.

The private company’s profits outstripped forecasts in the year to December 31 after a strong Christmas driven by demand for the latest handsets.

The group’s focus on the 16 to 30 age group meant there was strong demand for 3G mobile phones, since many of its customers were embraced new technology.

Group sales rose 15% to £2.12 billion, while earnings before interest, tax and goodwill came in at £149 million – well ahead of the £115 million predicted by the firm.

Mr Caudwell first disclosed in November that he was inviting offers for the Caudwell Group, which also includes mobile repairs and distribution businesses. The sale will not include fixed-line telecoms arm Caudwell Communications, although that could be offloaded at a later date.

Phones4U expects to add another 100 stores to its network of 353 sites across the UK over the next two years. More than 8,500 staff are employed across the wider group.