Phoenix Venture Holdings
|
|
Phoenix Venture Holdings (PVH), also known as the Phoenix Consortium, is a British company formed by four businessmen, John Towers, Peter Beale, Nick Stephenson and John Edwards, in March 2000 during BMW's break-up of the Rover Group. In a financially complex deal involving a £500 million "dowry payment" from BMW, PVH purchased Rover in May 2000 for the notional sum of £10, relaunching the car company as MG Rover.
| Contents |
Background
BMW had acquired the Rover Group in 1994, but by 1999 it had become a major financial liability. Since September 1999 the venture capital company Alchemy, run by Jon Moulton and Eric Walters, had been in talks with BMW about acquiring Rover. When news of the talks became public on March 16, Alchemy was widely expected to take control of MG and Rover. By that time, it was already decided that BMW would retain Mini and sell Land Rover. Alchemy intended to name the company the MG Car Company, selling the MG-F sports car and sporting versions of the existing Rovers including the new 75, probablt dropping the Rover brand.
On April 6, 2000 John Towers – the most prominent of the four men known as the Phoenix consortium – presented a counter-offer to BMW. During April, with access to the company accounts Alchemy got more nervous about the deal when acceptable terms could not be hammered out, and pulled out. On May 8, following a last-minute injection of finance from the First Union Bank of North Carolina, a deal with Phoenix was agreed. The sale occurred on May 9.
The "dowry" from BMW was made up of a £427 interest-free loan and stocks of cars.
Kevin Howe was appointed MG Rover's managing director in July 2000.
It is estimated that, by April 2005, the four Phoenix executives have made around £40 million from MG Rover, a good return on the £60,000 they each invested. MG Rover placed itself in administration on April 8, 2005.
Other assets
Included in the sale were:
- Studley Castle in Warwickshire, a conference hotel
- the Midland Powertrain engine plant, costing an additional £20
- Rover Capital (now MG Rover Capital), a book of car loans, costing an additional £50 along with a undisclosed sum from the Bank of Scotland
Pension fund
SAIC
See MG Rover.
External links
- Austin Rover unofficial site: Like a Phoenix from the flames (http://www.austin-rover.co.uk/index.htm?wschapter9f.htm)