Machine tool maker UGG plans Zurich IPO, banks mandated

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FRANKFURT, Dec 7 (Reuters) - Machine tool maker United Grinding Group (UGG) is planning a stock market listing in Zurich next year, as its owner is hoping to take advantage of high stock market valuations, people close to the matter said.

Germany's industrial holding Koerber AG, which owns UGG, has asked UBS, Credit Suisse and Berenberg to organise the initial public offering as so-called global coordinators, they added.

Koerber declined to comment while the banks also declined to comment or were not immediately available for comment.

Tentative bids for UGG, which may be valued at 9-11 times its expected earnings before interest, tax, depreciation and amortisation in a potential deal, are due before Christmas, the sources said.

Several private equity groups as well as strategic peers are expected to hand in offers, they added.

UGG makes tools to grind surfaces and small workpieces and is expected to post core earnings of 70 million euros this year.

($1 = 0.8442 euros)

This article appears in: World Markets , Economy , Banking and Loans , US Markets , Stocks , IPOs

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