James Packer and Ashok Jacob reach for the magic formula
Colin Kruger, CBD
Colin Kruger, CBD
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It isn't a big step from litigation funding to baby food – not if you're a struggling ASX-listed litigator.
Perth-based Hillcrest Litigation never really recovered from the loss of a high-profile case that dragged in our PM, Malcolm Turnbull.
The case was always unmeritorious, brought in the hope that I would pay the plaintiff and his litigation funder money to which they were not entitled in order to avoid trial," said Turnbull at the time.
So now the company is serving as a back-door listing for The Infant Food Holding Co Pty Ltd – and will change its name to Bubs Australia Ltd at next month's AGM if all goes well.
Bubs is a Sydney company that offers certified organic toddler snacks and has also cornered the market for goat milk formula.
About 40 per cent of sales are overseas, but there is only a modest mention of the Chinese market in the documents, which is probably just as well given the tummy upsets at Bega Cheese and Blackmores at the moment
Let's hope Hillcrest has better luck with its latest corporate reincarnation. It made its last jump – from mining to litigation – just as the resource boom was kicking in.
Bubs' executive team includes co-founder, Anthony Gualdi, who was the man behind Shakespeare Pies – a decidedly non-organic treat that would not normally be fed to infants.
But he is not the only successful business name backing the float. If all goes to plan, Ellerston Capital will emerge as one of the largest investors with a 13.7 per cent stake.
Ellerston no longer functions as the Packer family's private investment vehicle, but James Packer still holds a 25 per cent stake in the mothership which is run by a close family associate, Ashok Jacob.
Don't worry they are not exactly betting the farm on this venture which will be worth just shy of $24 million when it hits the market just before Christmas. Which is not bad considering it generated revenue of just $1.8 million last year and made a loss of $363,000.
BAL Price at posting:
$10.76 Sentiment: Buy Disclosure: Held
