Investment Matters

Takeover vote 1: Patties Foods - approved

Today Patties held the Scheme of Arrangement meeting for Pacific Equity Partners takeover. Shareholders voted overwhelmingly in favour.  The hearing for the Court ratification (as is usual under a Scheme of Arrangement) is scheduled to occur 2-Sep-16.  Given the straight-forward nature of this Scheme, we expect this will also be successful.

A "private-Patties" is being established as part of the Pacific Equity Partners (PEP) takeover.  Equity holders can transfer between 40% and 100% of their shares to an unlisted Patties company, and co-invest with Pacific Equity Partners. 

Those First Samuel clients with an Alternative allocation will have a portion of their Patties shares transferred from their Equity to their Alternative allocation, and become investors in "unlisted-Patties"  (tax carry forward will apply in relation to CGT).

We view this as an exciting opportunity to invest along side PEP as they develop and grow Patties - through acquisitions, organic sales growth and operational improvements. 

Energy Developments was a highly successful case in point in relation to this - where we co-invested, with the very same company - PEP - being the majority shareholder, for a number of years (in that case First Samuel clients remained as minority listed security holders).  We look forward to again a successful journey with PEP as co-investors, as Patties takes the next step up as a company.