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The Washington H Soul Pattinson logo is seen displayed on a smartphone screen.
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Actions of the Australian investment company Washington H. Soul Pattinson, also known as Soul Patts, and its Affilié BrickWorks jumped after the two companies announced a A merger of $ 14 billion ($ 9 billion).
Soul Patts’ shares negotiated 13.78% higher, while Brickworks, the largest brickmaker in Australia, jumped from 10 p.m. to 1 p.m..
As part of the agreement, a new company listed in Sydney acquire all the actions in circulation Soul Patts and Brickworks. The merged entity should be worth around $ 9 billion, with real estate assets, investment capital and credit totaling $ 13.1 billion.
“The merger of Soul Patts with Brickworks has a lot of strategic and financial meaning”, Todd Barlow, CEO and managing director of Soul Patts, Todd Barlow, said in a press release. He added that the agreement “simplifies the structure, adds a scale and creates a more investable business”.
The merger will have a 56 -year -old mutual property which was designed to postpone hostile takeover and promote long -term investment strategies. Soul Patts holds 43% of Brickworks, while the Brickker has a 26% stake in Soul Patts. However, criticisms argued that it had deleted the value of shareholders and the transparency of companies.
Brickworks shareholders are expected to receive an implicit value of $ 30.28 per share, reflecting a bonus of 10.1% compared to the closing price of the action last Friday.
Pitt Capital Partners acts as an advisor to Soul Pattinson, and Citigroup Global Markets Australia advises BrickWorks.
The merger follows several unsuccessful attempts To relax between Soul Patts and Brickworks, including a concerted effort by the perpetual management of investments and the venture capital Mark Carnegie between 2012 and 2017, which was rejected after the Federal Court ruled that the structure was not detrimental to shareholders.
“The structure [was] ODD, set up in 1969 as a sharing sharing between two companies with similar market capitalizations to protect themselves against each other, “said Hugh Dive, director of investments at Atlas Funds.
“Historically, we have avoided both of us because the Cross Holdings / Complicated structure saw the two companies discount on their peers,” added Dive.
Although this decision is not significant in terms of a mergers and acquisitions in Australia, investors “clearly like this,” he said, pointing to the sharing decision.
