CORRECTED-UPDATE 1-Dutch trust firm Intertrust seeks 475 million euros in IPO
(Corrects first and sixth paragraphs to make clear Intertrust does not provide tax advice)
(Reuters) – Intertrust, which provides tax and regulatory compliance services to 17,000 companies, said on Monday it will seek an initial public offering (IPO) of shares on the Euronext stock exchange.
The Amsterdam-based company did not say how large a stake will be sold during the IPO, but it hopes to raise 475 million euros ($537 million) to repay debt.
The company, which is 74 percent owned by Blackstone, also reported adjusted earnings before interest, taxes, and amortization (EBITA) of 122 million euros ($138 million) in 2014, on revenue of 296 million.
The balance of the company is held by 165 employees and managers who may sell part of their shareholdings in the offering, Intertrust said in a statement.
CEO David de Buck said the listing would also improve the company’s visibility and give it “added financial flexibility to take advantage during an important period of consolidation in our sector.”
Intertrust, which has reportedly been considering a public listing since 2014, has suffered from image problems as it provides tax avoidance and administrative services for “mailbox” companies.
The Netherlands is a popular location for holding and trust companies, due to favourable Dutch tax rules on intellectual property, royalties and a policy of providing companies with upfront decisions on how they will be taxed.
In addition, the Netherlands has a large network of tax treaties that help companies shift taxes to countries with low tax rates such as Ireland and Bermuda.
It is not clear how Intertrust will balance the transparency demanded of a public company with its business model, which includes shielding customers from scrutiny.
Intertrust’s supervisory board is packed with major names in the Dutch financial world, including former central bank chairwoman Helene Vletter van Dort and former Heineken CEO Anthony Ruys.
Intertrust is advised by Lazard, with Deutsche Bank and UBS acting as joint global coordinators of the listing. ($1 = 0.8840 euros) (Reporting by Toby Sterling; Editing by David Holmes)
