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ECM activity buoys the M&A market

14 October 2016

Strong support from equity market investors has buoyed the Australian M&A market in the third quarter of 2016 , with Allens' market leading M&A team prominent again in this activity, ranking:

  • First for deals by value to 30 September 2016 in Australia and New Zealand (Mergermarket);
  • First for completed deals by value to 30 September 2016 in Australia and New Zealand (Thomson Reuters); and
  • Second for announced deals by value to 30 September 2016 in Australia and New Zealand (Thomson Reuters and Bloomberg).

Commenting on the market, Allens' M&A partner Rob Pick said the real positive coming out of recent activity has been the strong support provided by equity market investors for M&A plans being executed by ASX-listed companies.

'In the past quarter, it was particularly pleasing to assist clients such as Evolution Mining and Bapcor in raising equity from shareholders for strategic M&A opportunities. Our role for the vendors of The Good Guys also provided a perspective on the successful raising undertaken by JB Hi-Fi to fund that acquisition.

'This bodes well for a strong finish to 2016.'

Some of the more significant deals announced in the third quarter in which Allens was involved included:

  • the long term lease of the Port of Melbourne for $9.7bn;
  • JB Hi-Fi's $870m acquisition of The Good Guys; and
  • Evolution Mining's acquisition of an economic interest in the Ernest Henry Mine in Queensland from Glencore.

According to M&A partner Tom Story, ongoing transactions in the infrastructure sector will also continue to benefit the M&A market.

'The continued strong interest in Australian infrastructure assets from both domestic and offshore investors is set to continue, which should underpin M&A volumes for the remainder of 2016,' Tom said.

Ends

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Notes for editors.

Allens is a commercial law firm working throughout Australia and Asia. Through its integrated alliance with Linklaters it provides clients access to 39 offices in 28 countries around the world.