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STREET TALK
Teaser document for Hawker Pacific takes flight; Jefferies hired
October 5 2017 - 12:15AM
Australian-based aviation spare parts and servicing business Hawker Pacific is on the block, with United States investment bank Jefferies mandated to find a new owner.
Street Talk can reveal Jefferies' bankers have started drumming up buyer interest in the company, with a teaser sent to private equity firms and industry players.
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United States investment bank Jefferies is seeking a buyer for Hawker Pacific.
Headquartered in Sydney, Hawker Pacific delivers a range of services to aircraft owners including aircraft sales, aircraft support and management and aircraft supplies across Singapore, China, the Middle East and other locations.
It is understood the business has been pitched with $US25 million in earnings forecast for the 2018 financial year.
Hawker Pacific is well known in aviation circles. The company was founded in 1978 and has grown to employ more than 800 people in 19 locations and servicing corporate, government and private aircraft owners. It is owned by BH Global Aviation, which is based in the United Kingdom.
The teaser is expected to precede a formal auction. The sale document, obtained by Street Talk, spruiks Hawker Pacific as "the largest business and general aviation (B&GA) services provider within Asia Pacific, the fastest growing region for private aviation and maintenance, repair and overhaul (MRO) globally".
It also notes Hawker Pacific has the largest fixed-base operator network across Asia Pacific, "with exclusive rights in Shanghai."
Elsewhere, fund manager Propertylink isn't the only local company on the radar of Warburg Pincus.
Street Talk understands the private equity giant is also running the ruler over $1 billion data centre owner Metronode and may be seeking counsel from Citigroup.
With first-round bids due in just over a week, Warburg Pincus' participation in the process puts it on a collision course with $US35 billion global data storage heavyweight Equinix which has drafted in JPMorgan for advice, and Singapore's ST Telemedia, which has turned to Macquarie Capital.RBC Capital Markets and UBS are managing the Metronode auction.
Ontario Teachers' private equity arm took full control of Metronode in December 2016, having previously held a 71 per cent stake alongside CIMIC.
Finally, as first reported by this column, small-cap veteran Tim Powditch has crossed back to the buy-side, joining Sydney-based investor Glennon Capital.
Powditch started at Glennon Capital as a portfolio manager on Wednesday, working alongside founder and managing director Michael Glennon.
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