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.