Coates takeover approvedShareholders have voted in favour of a...

Coates takeover approved

Shareholders have voted in favour of a $1.7 billion takeover scheme by the private equity-backed offer from rival National Hire Group Limited

The company said 89% of Coates shareholders voted in favour of the scheme following a unanimous recommendation from Coates' non-executive directors.

The bidding consortium, including Kerry Stokes' National Hire and private equity firm Carlyle Group, has formed a new company, called Ned Group Holdings Pty Limited to acquire Coates and National Hire's rental services businesses.

National Hire and Carlyle will each hold a 50% voting interest in Ned Group according to a statement issued by National Hire.

The rental operations of Coates and National Hire will be merged within Ned Group to create the largest equipment hire business in Australia.

Synergy benefits in excess of $30 million per annum are expected to be realised from the transaction once the two businesses have been fully integrated, National Hire said.

The scheme remains subject to approval of the Federal Court.