PRIVATE EQUITY – AUSTRALIA

Cashed-up PE firms prowl ASX for deals

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 13 & 16 : 13-Aug-18

The value of announced mergers and acquisitions involving Australian-listed companies has topped US$39.3bn so far in 2018. Private equity investors have been particularly active; US$11.4bn ($15.6bn) worth of such deals involving both listed and unlisted assets have been announced so far in 2018, which is 47 per cent higher than at the same time in 2017. Experts anticipate that the private equity sector will continue to pursue listed companies, with Tom Story of law firm Allens noting that suitors and their targets have been more willing to agree on price in 2018.

CORPORATES
ALLENS, DEALOGIC (AUSTRALIA) PTY LTD, INVESTA OFFICE FUND – ASX IOF, THE BLACKSTONE GROUP LP, SIRTEX MEDICAL LIMITED – ASX SRX, CDH INVESTMENTS FUND MANAGEMENT COMPANY, BWX LIMITED – ASX BWX, SINO GAS AND ENERGY HOLDINGS LIMITED – ASX SEH, SANTOS LIMITED – ASX STO, HEALTHSCOPE LIMITED – ASX HSO, OAKTREE CAPITAL MANAGEMENT LLC, BILLABONG INTERNATIONAL LIMITED, PACIFIC EQUITY PARTNERS PTY LTD, LIFEHEALTHCARE PTY LTD, CITIGROUP PTY LTD, BGH CAPITAL PTY LTD, BAIN AND COMPANY, I-MED RADIOLOGY, ACCOLADE WINES LIMITED, CHAMP PRIVATE EQUITY PTY LTD, THE CARLYLE GROUP, MANUKA HEALTH, IXOM, PEMBA CAPITAL, DEVICE TECHNOLOGIES AUSTRALIA, GOLDMAN SACHS AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, AMCOR LIMITED – ASX AMC, NEW YORK STOCK EXCHANGE

EMR Capital buys BHP Chile copper mine for $310 million

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Original article by James Thomson
The Australian Financial Review – Page: 13 : 20-Jun-18

BHP Billiton has sold its Cerro Colorado copper mine in Chile to private equity firm EMR Capital for $US230m ($A310m). BHP will also receive $US40m from the sale of inventory from the mine, while a potential additional payment of up to $US50m is linked to the outlook for the copper price. EMR’s co-founder Jason Chang says the firm’s focus is on increasing the mine’s output and its resource base, rather than the copper price. Chang expects EMR to make further acquisitions in the next two years.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, EMR CAPITAL PTY LTD, RIO TINTO LIMITED – ASX RIO, ADARO ENERGY

Healthscope $6 billion bid ‘opportunistic’, but worth a look

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Original article by Jessica Gardner, Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 15 & 22 : 27-Apr-18

Private hospital operator Healthscope has received a $A4.1 billion takeover bid from a private equity consortium led by BGH Capital. Other members of the consortium include AustralianSuper and the Ontario Teachers’ Pension Plan Board. They are offering $A2.36 per share in cash, as well as taking on around $A1.7 billion in debt. Australian Ethical Investment fund manager Andy Gracey considers the bid to be "opportunistic", but one that investors with a more short-term view may consider.

CORPORATES
HEALTHSCOPE LIMITED – ASX HSO, BGH CAPITAL PTY LTD, AUSTRALIANSUPER PTY LTD, ONTARIO TEACHERS’ PENSION PLAN, AUSTRALIAN ETHICAL INVESTMENT LIMITED – ASX AEF, GIC PRIVATE LIMITED, CANADA PENSION PLAN INVESTMENT BOARD, TELSTRA CORPORATION LIMITED – ASX TLS, WATERMARK FUNDS MANAGEMENT PTY LTD, HYPERION ASSET MANAGEMENT LIMITED, ELLERSTON CAPITAL PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, SUMITOMO CORPORATION

Private equity upbeat on deals, record capital

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 17 & 20 : 2-Mar-18

Bain & Company has released a report which notes that the global private equity industry had some $US633bn worth of funds to invest at the end of 2017. Meanwhile, private equity experts who attended the annual Asian Venture Capital Journal conference are positive about the outlook for deal-making in Australia during 2018. Data from Dealogic shows that $US1bn ($A1.3bn) worth of deals were made in the first two months of the year.

CORPORATES
BAIN AND COMPANY, PACIFIC EQUITY PARTNERS PTY LTD, KKR AND COMPANY LP, I-MED/MIA NETWORK LIMITED, LIFEHEALTHCARE GROUP LIMITED – ASX LHC, DEALOGIC (AUSTRALIA) PTY LTD, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, BGH CAPITAL PTY LTD

Private equity ready to splash $7.7bn cash

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Original article by Scott Murdoch
The Australian – Page: 17 & 18 : 19-Feb-18

The Australian Private Equity & Venture Capital Association has reported that the industry raised $A3.35 billion in 2017. Local private equity funds invested $A3.38 billion in deals in 2017, while private equity and venture capital funds are estimated to have a $A7.7 billion "war chest" at their disposal. Vic­toria Allen of Minter Ellison says sectors that can expect to attract private equity and venture capital investment include healthcare, technology and disability services.

CORPORATES
AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED, MINTER ELLISON, UBS HOLDINGS PTY LTD, KKR AND COMPANY LP, KOHLBERG KRAVIS ROBERTS AND COMPANY, VARDE PARTNERS INCORPORATED, I-MED/MIA NETWORK LIMITED, EQUITY TRUSTEES LIMITED – ASX EQT, PERMIRA ADVISERS LIMITED, LASER CLINICS AUSTRALIA PTY LTD, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, CLAYTON UTZ, FORT STREET CAPITAL PTY LTD, DEUTSCHE BANK AG, REDCAPE PROPERTY GROUP, MOELIS AND COMPANY, DIXON GROUP, VENTIA, APOLLO GROUP INCORPORATED, FITNESS AUSTRALIA, QUADRANT CAPITAL PTY LTD

Chocolate maker Darrell Lea sold for a lip-smacking $200m

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Original article by Nick Toscano, Sarah Danckert
The Age – Page: 5 : 16-Jan-18

Tony and Christina Quinn have sold the Darrell Lea confectionery business to Quadrant Private Equity in a deal worth $A200m. The couple, who acquired Darrell Lea from administrators in 2012, previously sold VIP Pet Foods to the private equity firm in 2015. Quadrant has flagged plans to expand the Darrell Lea brand in Australia and offshore. Darrell Lea booked an after-tax profit of $A8.75m in 2016-17, with revenue of $A81.2m.

CORPORATES
DARRELL LEA CONFECTIONERY COMPANY PTY LTD, QUADRANT PRIVATE EQUITY PTY LTD, VIP PET FOODS

PE floats sag in 2016, but not over 3 years

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 19 : 4-May-17

Rothschild and the Australian Private Equity & Venture Capital Association have produced a report which shows that IPOs backed by private equity firms underperformed the broader IPO market in 2016. The former delivered an average share price gain of 2.8 per cent, compared with a gain of 10.5 per cent for other floats. However, there were just five private equity-backed IPOs in Australian during the calendar year, and analysis shows that such IPOs have outperformed since 2013.

CORPORATES
NM ROTHSCHILD AUSTRALIA HOLDINGS PTY LTD, AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED, ZIP INDUSTRIES AUSTRALIA, QUADRANT PRIVATE EQUITY PTY LTD, QUICK SERVICE RESTAURANTS HOLDINGS PTY LTD, OFFICEWORKS SUPERSTORES PTY LTD, WESFARMERS LIMITED – ASX WES, BINGO INDUSTRIES LIMITED – ASX BIN, TEGEL GROUP HOLDINGS LIMITED – ASX TGH, INGHAMS GROUP LIMITED – ASX ING, SCOTTISH PACIFIC GROUP LIMITED – ASX SCO, BRAVURA SOLUTIONS LIMITED.- ASX BVS, GTN LIMITED – ASX GTN, STANDARD AND POOR’S ASX SMALL INDUSTRIALS INDEX, SPOTLESS GROUP HOLDINGS LIMITED – ASX SPO, CYAN INVESTMENT MANAGEMENT PTY LTD, REGAL FUNDS MANAGEMENT PTY LTD, ALINTA ENERGY (AUSTRALIA) PTY LTD, ACCOLADE WINES LIMITED

Private equity gives Guvera cold shoulder

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Original article by Sally Rose
The Australian Financial Review – Page: 21 : 10-Jun-16

The proposed sharemarket float of Guvera is backed by AMMA Private Equity, which was established by Darren Herft, who also co-founded the streaming music provider. He is CEO of Guvera and executive chairman of AMMA. Australian Private Equity & Venture Capital Association CEO Yasser El Ansar is concerned that the IPO could damage the reputation of the private equity industry. El Ansar says members of AVCAL – which do not include AMMA – must comply with a strict code of conduct, which includes their relationship with the businesses in which they invest.

CORPORATES
GUVERA LIMITED – ASX GUV, AMMA PRIVATE EQUITY PTY LTD, AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED, BENCHMARC GROUP, PACIFIC EQUITY PARTNERS PTY LTD, CHAMP PRIVATE EQUITY PTY LTD, ARCHER CAPITAL PTY LTD, KKR AUSTRALIA PTY LTD

Private equity floats lag for second year

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Original article by Vesna Poljak
The Australian Financial Review – Page: 17 : 23-Feb-16

New figures show that Australian IPOs in 2015 that were backed by private equity firms delivered an average return of 13.1 per cent. In contrast, the average return of IPOs that had no private equity involvement was 19.3 per cent. Private equity-backed IPOs have not outperformed since 2013, when they achieved an average return of 19.6 per cent. However, they have comfortably exceeded the performance of non-private equity IPOs over a three-year period.

CORPORATES
AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED, NM ROTHSCHILD AUSTRALIA HOLDINGS PTY LTD, GATEWAY LIFESTYLE – ASX GTY, CBL CORPORATION LIMITED – ASX CBL, BESTON GLOBAL FOOD COMPANY LIMITED – ASX BFC, PEPPER GROUP LIMITED – ASX PEP, MYER HOLDINGS LIMITED – ASX MYR, DICK SMITH HOLDINGS LIMITED – ASX DSH, ECLIPX GROUP LIMITED – ASX ECX, ANCHORAGE CAPITAL PARTNERS PTY LTD, McALEESE LIMITED – ASX MCS

Hegarty-backed private equity vehicle snaps up copper mine

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Original article by Amanda Saunders
The Australian Financial Review – Page: 20 : 22-Sep-15

EMR Capital will pay $A45m for the Mt Gordon copper mine in Queensland, which was placed in care and maintenance mode by Aditya Birla Minerals in 2013. EMR was founded by Owen Hegarty and Jason Chang, and the private equity firm acquired the Mt Gordon Mine via its inaugural investment fund. Chang has flagged further acquisitions for EMR in the mining sector, with copper, gold, coking coal and potash assets among the likely targets.

CORPORATES
EMR CAPITAL PTY LTD, ADITYA BIRLA MINERALS LIMITED – ASX ABY, LIGHTHOUSE MINERALS PTY LTD