founder sells entire stake for $160.5mil

March 7, 2013, 10:42 PM
Founder of Warburg Pincus-Backed TPI Sells Entire Stake
Article Comments Deal Journal Australia HOME PAGE »
By Gillian Tan

The founder of Australia’s largest waste-management company, Transpacific Industries Group TPI.AU -2.58%Ltd., sold his entire 11.3% stake in the company after the market closed on Thursday, fetching 160.5 million Australian dollars (US$164.8 million), a person familiar with the matter said.

Terry Peabody sold his stake at 90 Australian cents a share, a 4.8% discount to the stock’s last-traded price of 94.5 cents on Thursday. The sale was underwritten and managed by Macquarie Capital MQG.AU -1.18%.

Buyers included institutional shareholders both in Australia and offshore, the person said—though not TPI’s major shareholder, U.S. private-equity firm Warburg Pincus, which holds a 33.9% stake.

In 2010, Mr. Peabody retired as chairman of the company, which he’d founded in 1987. In January 2012, TPI said Mr. Peabody lodged a claim alleging that it breached contracts and duties to his associated entities by stopping KKR KKR -0.27%& Co. from participating in an equity raising in late 2011. KKR had attempted to buy a 7.6% stake at a premium, but was knocked back by TPI and its advisers because its offer came 50 minutes after the closing.

http://blogs.wsj.com/dealjournalaustralia/2013/03/07/founder-of-warburg-pincus-backed-tpi-sells-entire-stake/