CVC close to buying stake in London Eye owner Merlin

Wheel turns: Merlin, which runs the London Eye, was reported to have been considering going public earlier this year

11 April 2012

Private equity firm CVC is on the verge of a deal to buy a 30% stake in London Eye-to-Madame Tussauds operator Merlin Entertainments.

CVC would buy the minority stake from Merlin's existing shareholders, which include US private equity group Blackstone, Kirkbi — a private Danish holding company that owns three quarters of the Lego Group — and Dubai International Capital.

The move came after Merlin opted not to float on the stock market earlier this year due to the volatile financial markets.

The deal would create a three-way ownership structure with CVC, Blackstone and Kirkbi all holding about a 30% stake in Merlin, reports said today.

Dubai International Capital, which sold a 17% stake in Merlin last year, is expected to offload its remaining 6% to CVC.

Merlin, which owns the London Eye, Madame Tussauds and the Sea Life centres, declined to comment. CVC was not immediately available for comment on the report.