The Freehills M&A team has kicked off the new financial year with a bang. The team has wasted no time, and within the first three business days of the new financial year, has advised on the following three major deals:
- Centennial Coal Company on its A$2.5 billion recommended takeover bid from Banpu Public Company Limited
- CSR on the A$1.75 billion sale of its sugar and renewable energy business, Sucrogen to Wilmar International Limited and
- Metcash on its A$215 million acquisition of the Franklins supermarket chain.
Speaking of the transactions, Freehills partner Andrew Pike said, ‘Our involvement in these three significant deals simultaneously, speaks volumes about the depth and capability of our M&A team.
‘The deals were across the M&A spectrum. One is a takeover response, another is a dual track de-merger/sale, with a negotiated acquisition thrown in for good measure. Together, these deals show the breadth of expertise in our team.’
According to fellow partner Tony Damian, ‘If the past three days are anything to go by, the second half of the calendar year should see heightened levels of M&A activity.’
Freehills has advised on the following three deals:
Centennial Coal on its 100% takeover bid from Banpu
Centennial Coal Company Limited (Centennial) yesterday announced its A$2.5 billion recommended takeover bid by Stock Exchange of Thailand listed Banpu Public Company Limited, through its wholly owned subsidiary Banpu Minerals (Singapore) Pte Ltd (Banpu).
Freehills is advising Centennial Coal on all aspects of the transaction.
The takeover offer is an all-cash, off-market takeover bid for 100% of the shares in Centennial Coal. With an offer price of A$6.20 per share, this values the fully diluted equity in Centennial Coal at approximately A$2.5 billion.
The Freehills team was led by Freehills partners Tony Damian and Andrew Rich and supported by lawyers Ben Jones, Li-Lian Yeo and Mark Nam. The team worked closely with Louise Baldwin, General Counsel of Centennial Coal.
Freehills partner Tony Damian said of the transaction ‘With some of the uncertainty of the RSPT now behind us, this could be the start of a renewed round of mergers and acquisitions in the resources sector’.
CSR on the sale of its sugar and renewable energy business
CSR Limited today announced the trade sale of its sugar and renewable energy business, Sucrogen Limited, to Singapore Exchange listed agribusiness company, Wilmar International Limited, for an enterprise value of A$1.75 billion.
CSR explored a number of strategic alternatives, including potentially demerging Sucrogen, and following the sale CSR is now able to focus on growing its building products business.
CSR Managing Director, Jeremy Sutcliffe, was quoted as saying that ‘the sale price of A$1.75 billion is an attractive valuation and will deliver significant value to CSR shareholders’.
The Freehills team was led by partners Andrew Pike and Philippa Stone, with Clayton James as the lead lawyer on the transaction.
Andrew Pike said of the transaction ‘Freehills was pleased to be able to assist our client CSR with the sale of its sugar business. The sale achieved the strategic objectives of CSR by separating the building products and sugar and renewable energy business’.
Metcash on the acquisition of Franklins
Freehills is advising Metcash Trading Limited on its acquisition of Interfrank Group Holdings Pty Ltd, which owns the Franklins business, for approximately $215 million. Franklins operates 85 supermarkets in New South Wales.
Completion of the acquisition is expected to occur by 30 September 2010 and is conditional upon, among other things, receipt of ACCC approval. Metcash has indicated that, following completion, it proposes to sell the Franklins stores to independent IGA retailers.
The Freehills team was led by M&A partners Martin Shakinovsky and Andrew Rich, with assistance from senior associate Ben Dennell. Freehills worked closely with Metcash’s general counsel, Greg Watson, on the deal.
Freehills partner Martin Shakinovsky said, ‘We are delighted to have acted for Metcash on another significant transaction. Freehills has a long-standing relationship with Metcash, having acted on a number of its most important strategic transactions, most recently on its acquisition of a 50.1% stake in Mitre 10’.
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