re: Ann: David Jones Response to Unsolicited ......

re: Ann: David Jones Response to Unsolicited ... http://blogs.wsj.com/dealjournalaustralia/2012/06/29/david-jones-says-eb-private-equity-behind-1-7-billion-approach/

David Jones Says EB Private Equity Behind $1.7 Billion
By Gillian Tan

Four hours after announcing the receipt of an unsolicited approach, department-store retailer David Jones revealed the interested party is U.K.-based EB Private Equity.

EB Private Equity’s identity was revealed on a U.K. finance blog which reported that the group lobbed a 1.1 billion pound (US$1.7 billion) for the prominent Australian department store chain David Jones.

“EBPE’s proposal is said by EBPE to be A$1,650 million for a 100% acquisition of David Jones and described in the letter received by the company as being based upon “$850 million of equity provided by the EBPE led consortium, $450 million of lending provided by a syndicate of banks and investment institutions and $450 million in residual equity for the existing David Jones shareholders, a portion of this residual equity shall be underwritten,” David Jones’ statement to the Australian Securities Exchange said.

The amounts in the letter add to $1,750 million according to Deal Journal Australia’s calculations. No currency denomination is specified for the three figures referred to in the release.


“No details of EBPE’s financial capacity, its management, or any of the terms of the residual equity have been made available. No further details in relation to the proposal have been provided,” the statement concluded.

The U.K. blog said the fund is spearheading a consortium which includes Australian real estate funds. The blog said the consortium is being advised by Jones Lang LaSalle, Chalkhill Partners and other advisers.

Jones Lang LaSalle’s U.K.-based Head of Retail Investment Adrian Peachey and Chalkhill Partners Chief Executive Officer Stewart Booth were unavailable for comment when contacted by Deal Journal Australia.

EB Private Equity’s website describes the firm as a Luxembourg and U.K. real estate and real estate related investor, developer and private equity partner which is predominately centered on North America, Asia and Africa.

“We are focused on the acquisition of several classes of commercial real estate, alternative investment classes of real estate and the acquisition and development of luxury hotels,” the website says. “EB Private Equity has developed an expertise in real estate investments that ranges from investments in commercial (office and retail), leisure and alternative asset class investments,” the website continues.

Research conducted by Deal Journal found no record of the firm apart from its website which does not disclose a contact phone number or address.

“If it’s real and you can get A$3.12 a share, which is the mooted A$1,650 million number divided by the shares on issue, that’s a good result,” Allan Murray portfolio manager Simon Mawhinney said. “I don’t think it changes much at all, we don’t get excited about these highly conditional offers because it’s so difficult to know the outcome of these bids, about which we know nothing,” he added. Allan Murray owns more than 5% of David Jones.

David Jones was 13.7% higher at A$2.57 a share before the company entered a trading halt to announce EB Private Equity as the party behind the unsolicited approach.