Shareholder Thorney Investment Group has expressed early support for Adamantem’s $100.6 million acquisition of Legend Corporation, giving the deal a good shot at getting across the line.
Thorney Investment Group has a shareholding of about 16 per cent in the target, making it a key player in getting the transaction done.
“In principle, we support this transaction, subject to there being no superior offer, and our review of the upcoming independent expert’s report,” Thorney’s operating chief Peter Landos told Dataroom in an email.
Legend which has a presence globally in electrical, IT and semiconductor markets, is among the latest targets of private equity on the ASX
Adamantem secured a recommended deal with the company at 36.5 cents per share or $79.6 million on Friday. The transaction equates to an enterprise value of $100.6 million and a premium of 17.7 per cent to where the stock finished trading on May 22.
It’s 22.1 per cent over the Legend one-month volume weighted average price.
The deal will require Foreign Investment Review Board sign off, likely due to the composition of Adamantem’s investor base.
There is also scope for a special dividend to be paid which would reduce the amount payable under the transaction.
This column on Friday revealed Adamantem had tapped industry stalwart Gary Uren to run the group should the deal proceed.
Uren has experience in the electrical and electronics manufacturing sector.
He was formerly the managing director of Legrand in Australia before undertaking various roles internationally with Tyco and Atkore International.
Legend designs, manufactures and distributes products and accessories to electrical, power, rail, mining and telecommunications end markets.
The proposed acquisition is Adamantem’s second public-to-private transaction and will mark the fund’s sixth investment since launching in 2017. Last year, the firm acquired ASX-listed Zenitas Healthcare.
Adamantem, which was founded by Rob Koczkar and Anthony Kerwick, counts ANZ chairman David Gonski and Manikay Partners chairman Russell Aboud on its advisory council.
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