KKR leads £1.7bn race for Argos store-card owner NewDay

The backstage equity steadfast astatine the centre of a drawstring of bidding wars for British companies is starring the £1.7bn contention to bargain the proprietor of Argos's store-card operations.

Sky News has learnt that KKR is the frontrunner to bargain NewDay Group, which is owned by the buyout firms Cinven and CVC Capital Partners.

KKR is not successful exclusive talks, and different parties - said to see Pimco, the plus absorption giant, KKR, and a Bain Capital-led consortium - stay successful contention to get NewDay.

Some of the bidders, specified arsenic Pimco, person been funny successful pursuing a woody to bargain NewDay's user indebtedness publication alternatively than the institution arsenic a whole; others including KKR are understood to beryllium funny successful acquiring the full business, but perchance with its existing shareholders remaining invested for a play of time.

NewDay, which took ownership of Argos's store paper concern past twelvemonth successful a £720m woody with J Sainsbury, the supermarket giant, has been exploring a merchantability oregon banal marketplace listing for months.

Last November, Sky News reported that NewDay's owners were lining up concern bankers astatine Barclays to counsel connected a process.

NewDay is 1 of Britain's biggest privately held providers of user recognition services, with astir 4 cardinal customers.

Last year, it reported £213m of underlying pre-tax profit, with caller lawsuit acquisitions up 36%.

It besides launched a exertion and lending concern with Lloyds Banking Group, and launched the aviator of a exertion concern with Debenhams Group successful the last 4th of past year.

KKR has go engaged successful bidding wars successful caller months for Assura, the GP surgeries landlord, and investigating instrumentality supplier Spectris - some of which are listed connected the London banal market.

NewDay, KKR and CVC declined to comment.