more on aeq : allco equity partners limited [aeqca
$550m 'cash box' ready to roll By Christian Catalano November 20, 2004 Former Publishing and Broadcasting Ltd chief Peter Yates has completed a rapid return to the Australian business scene, announcing yesterday that the private equity and corporate raider fund he has taken charge of will complete a $550 million float before Christmas. Investor interest in the Allco Equity Partners (AEP) float was massive, with an initial book-build process believed to have attracted more than $1 billion in initial applications. This is despite the fact that AEP - which has the primary backing of financier David Coe and Melbourne's wealthy Liberman family - will essentially be a listed "cash box" fund, with no current investments. But a lack of large Australian floats in recent months and the imminent sell-off of News Corporation shares as it reincorporates to the US has created investment demand from local fund managers, a host of which have subscribed to the AEP offer. The fund's two biggest backers are Mr Coe's private company Allco Finance Group and the Liberman family's LJCB Investment Group, which will take $200 million of shares, or 36 per cent of the listed company. AMP Capital Investors are the next biggest backers in AEP with $75 million, while three other major institutions are believed to have invested $160 million between them. It was Mr Coe and the Liberman family who earmarked Mr Yates for the managing director's role earlier this month. Mr Yates, a highly successful investment banker with Macquarie throughout the 1980s, said yesterday: "AEP represents an exciting opportunity to invest in the private equity and public markets, using the skills and resources of two very successful Australian investment and financial groups." Mr Yates' primary role will be "to invest in unlisted private and public company situations". These will include buying out underperforming assets from other companies, funding for other pre-float situations, corporate restructuring and recapitalisation of existing entities. AEP is believed to have received special approval from the Australian Stock Exchange, which has traditionally frowned upon the listing of equity funds that do not hold any investments. But to reflect the time it may take for Mr Yates and his time to find suitable opportunities, AEP shareholders would only have to pay for their initial $6 shares in three equal parcels of $2 over two years. The float will put Mr Yates back in command of a public company less than six months after he announced his retirement from PBL. In September PBL announced that Mr Yates had pocketed a final pay packet of $10.55 million, including a $6.54 million termination payout. Mr Yates is believed to have invested some of this in the AEP offer.
Company Details Company Name: Allco Equity Partners Limited Industry Sector: Investment and Financial Services ACN: 111 554 360 Address: Level 24 Gateway, 1 Macquarie Place, Sydney, NSW, 2000 Website: http://www.allco.com.au Telephone: 1300 307 601 Information: Private equity has long been considered an attractive and desirable alternative asset class, owing to it's potential superior returns compared to those generally available from public markets. However, this class of investment has not generally been available to the public or to investors that require liquidity through a stock exchange listing. In Australia, there have been a number of activist or opportunistic public market situations in which shareholders were either too fragmented or unwilling to commit the time and effort required to acheive corporate change. The Offer provides the opportunity for investors to participate directly in private equity transactions and activist public market situations through a freely tradable security listed on the ASX.
The involvement of the Allco Group and the LJCB Investment Group differentiates the Company from other private equity investment opportunities. The Company is expected to benefit from the private equity transaction flow originated by these two organisations, the financial structuring skills of the Allco Group and the public marktet experience of the Manager's executive team.
The Allco Group has consistently created value for the shareholders of the companies it has created and listed, such as Record Investments, Record Realty and the Allco Hybrid Investment Trust. The Allco Group has also founded a range of successful private businesses in the field of financial services, including RAMS Home Loans, Rentworks, Mobius Financial Services and The Mortgage Insurance Company.
The Directors believe that the Company represents an attractive investment proposition as a result of the experience of the Manager's executive team; the strong track records of, and the transaction flow emanating from, the Allco Group and the LJCB Investment Group; the financial structuring skills of the Allco Group; and the flexible investment strategies of the Company.
Offer Information Offer Status: Open Open Date: 26th November, 2004 Close Date: 10th December, 2004 Float Date: 22nd December, 2004 Issue Price: $6.00 Amount Sought: $500,000,000 Number of Shares: 83,333,333 Market Cap at Issue Price: $555,555,552 Corporate Services Accountant: Deloitte Touche Tohmatsu Auditor: KPMG Share Registry: Computershare Registry Services Pty Ltd Manager: Tricom Equities Limited Manager: Bell Potter Securities Limited Manager: E.L & C. Ballieu Stockbroking Ltd Lead Manager: Credit Suisse First Boston Australia Equities Priv Lawyer: Mallesons Stephen Jaques Board Members Chairman: David Coe Managing Director: Peter Yates Director: Marcus Derwin Director: Geoff Morgan Director: Greg Woolley
