SALE OF BUSINESS ENTERPRISES – AUSTRALIA

Bond holder bid shakes Virgin

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Original article by Robyn Ironside, Damon Kitney
The Australian – Page: 13 & 17 : 25-Jun-20

Virgin Australia’s administrator Vaughan Strawbridge has been presented with a debt-for-equity proposal from about 5,500 of the failed airline’s bond holders. They would receive shares in Virgin and provide an $800m capital injection for the airline, which would remain a listed company if their proposal is accepted. The bond holders would have the option of immediately selling their shares and receiving about $0.70 for every dollar that they are owed. Bond holders contend that it is best outcome for Virgin and its employees. Strawbridge is slated to select the preferred private equity bidder within days.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, DELOITTE TOUCHE TOHMATSU LIMITED

Bauer Media offloads Aussie magazine arm for $50m, eight years after buying it for $525m

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Original article by Shannon Molloy
News.com.au – Page: Online : 18-Jun-20

Private equity firm Mercury Capital has struck a deal to acquire the Australian magazines business of Bauer Media. The sale price has not been disclosed, although it is believed to be less than $50m. Germany-based Bauer bought ACP Magazines for $525m in 2012, and it recently paid $40m for the Pacific Magazines division of Seven West Media. The Mercury Capital deal is expected to be completed in July.

CORPORATES
BAUER MEDIA AUSTRALIA PTY LTD, MERCURY CAPITAL PTY LTD, BAUER MEDIA KG, PACIFIC MAGAZINES PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM

Growing Virgin bondholders group emerges as kingmaker

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Original article by Lucas Baird
The Australian Financial Review – Page: 13 & 27 : 16-Jun-20

Final, binding offers for failed airline Virgin Australia are due on 22 June, with a decision on whether Bain Capital or Cyrus Capital Partners gets chosen as the successful bidder due at the second creditors’ meeting in mid-August. Unsecured bond and note holders in Virgin are owed around $2 billion, and a group of them has increased to almost 6,000 members in recent weeks; the group is getting advice from law firms Faraday and Corrs Chambers Westgarth on the sales process. Jason Harris from the University of Sydney Law School says any sales agreement that results in the bondholders getting little in the way of their money back is likely to be challenged in court.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, BAIN CAPITAL LLC, CYRUS CAPITAL PARTNERS LP, FARADAY AND KENT, CORRS CHAMBERS WESTGARTH, QANTAS AIRWAYS LIMITED – ASX QAN

AAP enters final stages of sale, will continue to operate but says some jobs will be lost

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Original article by Hannah Blackiston
Mumbrella – Page: Online : 9-Jun-20

A consortium of investors and philanthropists headed by former News Corp Australia CEO Peter Tonagh is set to acquire the newswire business of Australian Associated Press. The consortium has commenced negotiations with AAP for a binding sale contract, and the deal is expected to be finalised by mid-June. The Media, Entertainment & Arts Alliance has welcomed the deal to sell the AAP Newswire business, but notes that it will result in the loss of some jobs. The consortium will retain 85-90 jobs, including at least 70 editorial staff. AAP’s existing shareholders will retain the other parts of its business.

CORPORATES
AUSTRALIAN ASSOCIATED PRESS PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS

Bidders spell out Virgin job cuts to unions

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Original article by Jemima Whyte,Lucas Baird
The Australian Financial Review – Page: 13 & 16 : 4-Jun-20

Bain Capital and Cyrus Capital Partners must submit binding offers for Virgin Australia by 22 June. The two final bidders for the failed airline are under growing pressure to outline their plans for Virgin, including the likely job losses. Unions held talks with Bain and Cyrus on 3 June, and some sources have suggested that more than 20 per cent of Virgin’s employees could be retrenched. BGH Capital is said to have been looking at cutting 2,000 jobs if it had acquired Virgin.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH,BAIN CAPITAL LLC,CYRUS CAPITAL PARTNERS LP,DELOITTE TOUCHE TOHMATSU LIMITED,BGH CAPITAL PTY LTD

Bain, Cyrus to battle for Virgin

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Original article by Glenda Korporaal, Damon Kitney, John Durie
The Australian – Page: 13 & 16 : 3-Jun-20

Vaughan Strawbridge of Deloitte says the unsuccessful bidders for Virgin Australia could potentially team up with Bain Capital or Cyrus Capital Partners in buying the failed carrier. Bain and Cyrus must submit binding bids for Virgin by 12 June, after the final short-listed was culled from four to just two. A consortium led by BGH Capital and AustralianSuper had been regarded as a prime contender to buy Virgin, but sources have indicated that neither party is likely to seek to return to the bidding process.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, BAIN CAPITAL LLC, CYRUS CAPITAL PARTNERS LP, DELOITTE TOUCHE TOHMATSU LIMITED, BGH CAPITAL PTY LTD, AUSTRALIANSUPER PTY LTD

AAP bid: consumer watchdog warns Nine and News Corp against any attempt to block sale

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Original article by Paul Smee
The Guardian – Page: Online : 25-May-20

Former News Corp CEO Peter Tonagh is heading a consortium that has tabled a bid for Australian Associated Press. The consortium also includes Samuel Terry Asset Management MD Fred Woollard and Australian Impact Investments MD Kylie Charlton. It is believed that AAP’s shareholders – News Corporation, Seven West Media and Nine – have yet to accept any offer for the news wire service. Australian Competition & Consumer Commission chairman Rod Sims has stressed the importance of AAP to media diversity and competition, and he warns that any attempt by Nine and News to block its would raise concerns in regard to competition law.

CORPORATES
AUSTRALIAN ASSOCIATED PRESS PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Singapore, BGH lead Virgin race

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Original article by Glenda Korporaal, Damon Kitney
The Australian – Page: 13 & 17 : 15-May-20

Deloitte’s Vaughan Strawbridge is expected to receive four serious non-binding indicative bids for Virgin Australia on 15 May. They are tipped to include a consortium that is headed by AustralianSuper and private equity firm BGH. Singapore’s Temasek will not be a member of the consortium, although it would gain indirect exposure to Virgin via its investment in BGH’s $2.5bn equity fund. Queensland government-owned QIC has ruled out making an indicative bid on 15 May, although it might join a consortium in the second round of the bidding process.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, DELOITTE TOUCHE TOHMATSU LIMITED, AUSTRALIANSUPER PTY LTD, BGH CAPITAL PTY LTD, TEMASEK HOLDINGS (PTE) LTD, QIC LIMITED

Forrest among Virgin suitors as June sale set

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Original article by Robyn Ironside
The Australian – Page: 13 & 20 : 1-May-20

The first meeting of Virgin Australia’s creditors has been told that eight prospective buyers of the carrier have signed non-disclosure agreements with the administrators. A further 12 parties are still in negotiations with Deloitte, which is seeking indicative offers by mid-May with a view to finalising the sale of Virgin by 30 June. Meanwhile, a spokesman for Andrew Forrest’s Minderoo investment group has declined to comment on speculation that the iron ore magnate could buy Virgin. ACTU president Michele O’Neil has called for government support for Virgin.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, DELOITTE TOUCHE TOHMATSU LIMITED, MINDEROO PTY LTD, ACTU

BGH’s Team Australia appeal for Virgin

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Original article by Patrick Durkin, Lucas Baird
The Australian Financial Review – Page: 1 & 20 : 24-Apr-20

Twelve parties are believed to have expressed interest in acquiring or investing in Virgin Australia. They include Australian private equity firm BGH Capital, which contends that a local buyer would be in the best interests of the airline and its employees. Foreign private equity firms and hedge funds are said to be interested in Virgin. Meanwhile, former Ansett Australia chairman Rod Eddington has backed calls for Virgin to cease servicing international routes and focus on the domestic market.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, BGH CAPITAL PTY LTD, ANSETT AUSTRALIA HOLDINGS LIMITED