Baker & McKenzie Advises Elph on Its $30 Million Investment in Coote
Deal Announcement
2 August 2010
Melbourne, Australia, 2 August 2010 – Baker & McKenzie acted for Elph Pty Ltd on its A$30 million investment in Coote Industrial Limited, increasing its stake in Coote from 25 percent to 44 percent. Elph's investment was undertaken by way of a partial takeover offer to Coote shareholders and by Elph underwriting an entitlement offer by Coote. Elph also provided Coote with a bridging loan facility.
The takeover bid was unusual given that Coote's directors changed their recommendation to support Elph's bid over the course of the offer period without an increase in Elph's offer price.
The entitlement offer was unusual given that ASIC withdrew its application to the Takeovers Panel as a consequence of an agreement reached between Elph, Coote and ASIC as well as the provision by Coote of information to ASIC in relation to allocations under the issue.
Commenting on the transaction, Baker & McKenzie partner, Richard Lustig said, "This transaction was complex due to an involved series of takeover and capital raising aspects. Further, the proportional nature of the bid was relatively unusual and may foreshadow an increase in this method of increasing a stake in a public company."
Partner Richard Lustig led the Baker & McKenzie team together with partner Simon De Young and associate Simon Schenkel.
Cochrane Lishman Carson Luscombe and Gresham acted for Coote.