Thats unreal. Did Australia get rooted ? What about the mum and dad investors !!! Need to worry about the value of the investment in Myer !!! Will they see $4 ever again or what they paid for it ?
The Australian November 13, 2009 12:00AM
THE Australian Taxation Office is urgently pursuing private equity firm TPG for $452 million related to its cash windfall from the float of the Myer department store chain.
The tax office froze a National Australia Bank account late on Wednesday night, concerned the money would be sent offshore. But in a dramatic twist, The Australian can reveal that the ATO was told yesterday the bank account had been almost completely emptied in the past seven days.
TPG last night refused to comment, but there is no evidence the firm knew of the tax office claim when the money was moved from the account. The Australian understands the court action was a complete surprise to TPG, and the tax office has not discussed the tax bill with the company.
Cayman Islands-based TPG Newbridge Myer was the ultimate parent company of the Myer Group, which last week listed on the Australian Securities Exchange after a $2.3 billion float.
Start of sidebar. Skip to end of sidebar. End of sidebar. Return to start of sidebar. TPG and its minority partner Blum Capital took a cheque for about $1.58bn, reflecting the sale of their entire 81 per cent stake.
The sale crystallised a huge profit for TPG, which is headed in Australia by Ben Gray, the son of former Tasmanian premier Robin Gray. TPG, Blum and the Myer family put in about $500m in cash to buy the chain from Coles Myer in 2006 and had already recouped their entire investment in dividends before this month's $1.58bn from new shareholders in Myer.
Since listing, the shares have fallen from their $4.10 issue price to close yesterday at $3.92.
The tax office took urgent action in the Victorian Supreme Court on Wednesday evening, seeking to restrain the funds in the NAB account.
It moved so quickly it did not have time to file a writ. Instead, the judge heard oral arguments from the tax office's barrister, Terry Murphy SC, and at 11pm an order was made to freeze the account.
The tax office is pursuing two offshore companies for the $452m - TPG Newbridge Myer and Luxembourg-based NB Queen SARL.
The tax office was successful in having the bank account frozen "in relation to the proceeds from the sale of shares in the company now known as Myer Holdings Ltd". The account was known as "My Piece of Myer", the slogan used to promote the share offer. Judge David Habersberger made the orders and the two offshore companies were also restrained "from dealing in any way" with share-sale proceeds.
Yesterday the matter returned to court, where it was revealed the money in the account had already been sent overseas. The case was subsequently dismissed.
The two offshore companies were not aware of the court proceedings and had not been served with court documents by yesterday.
There was no evidence the companies were trying to avoid paying the tax and the companies were not represented in either of the two court hearings. The $452m tax bill stands and will be accruing interest on a daily basis.
