Baker & McKenzie Advises Rey Resources on Successful Takeover Defences
Deal Announcement
2 August 2010
Melbourne, Australia, 2 August 2010 – Baker & McKenzie acted for Rey Resources Limited on its successful takeover defences of hostile takeover bids by Gujarat NRE Minerals Limited and Crosby Capital Limited.
The matter was particularly interesting due to the interplay between Rey's need to raise capital whilst subject to a hostile takeover bid. This resulted in Takeovers Panel proceedings being successfully overcome by Rey following the Panel accepting certain undertakings. This matter was also unusual because the takeover offer remained open for approximately a year.
Commenting on the deal, Baker & McKenzie partner, Richard Lustig, said, "To my knowledge, it is unprecedented that a takeover bid has run for a full year, and this created certain issues. It is also unusual that the bidder ended up with a lower stake in the target at the end of its bid compared to that with which it started."
The Baker & McKenzie team, led by Richard Lustig, partner John Mollard and Simon Schenkel, worked closely with corporate advisers Gresham Advisory Partners Limited. BBY acted as capital markets adviser to Rey and was led by David Smith.
Steinepreis Paganin acted for Gujarat. Freehills acted for Crosby Capital.