Unisuper was offloading $500m of shares in APA Group on Thursday night through JPMorgan. Shares were being sold in a book build with a floor price of $7.23 ranging up to $7.43 each, with bids taken in 5c increments.
The discount range of the trade is 5.4 per cent to 2.7 per cent to the last traded price of $7.64. Approximately 69 million shares representing about 5.3 per cent of securities were on offer. According to a term sheet sent to investors, the seller has agreed not to divest shares in APA for 90 days.
Unisuper owns 9 per cent of APA Group and is its largest shareholder.
The company describes itself as a leading Australian energy infrastructure business, owning and operating a $21bn portfolio of gas, electricity, solar and wind assets.
The sale comes after private equity firm Odyssey sold its stake in AUB Group on Wednesday night through Barrenjoey.
Star debt still casts shadow
Star Entertainment may be able to move on now it knows the extent of the fines it must pay to NSW casino regulators, but casting a shadow over the group is still its onerous debt pile, including the $800m of owing on its Brisbane development.
DataRoom can report that there’s interest from funds to buy distressed debt in the casino operator, but the price they want to pay versus the seller’s expectations are still far apart.
Sellers want 80c or 90c in the dollar but acquirers want to pay far less.
The original lenders that had $300m of loans to Star were Macquarie Group, Deutsche Bank, Soul Patts, Perpetual, Barclays, Regal and ARCM and Westpac.
But some have left the syndicate as part of its recent refinancing, including ARCM.
As reported on Thursday, Star will be able to keep its Sydney casino operating, but will have to pay a $15m fine and remain under the close supervision of government regulators.
Yet there’s still questions how it will raise the further funds needed that are a condition of lenders providing an extra $100m of loans.
The understanding is that institutional investors are hesitant to participate in a convertible notes raising that could provide the funds because of the uncertainty over the Austrac fines Star faces for money laundering offences.
Private equity groups such as Oaktree Capital Management, which were eager to participate before, have also gone, because the holders of the $100m super senior debt provided to the company are the first in line to be paid.
PEP may look at Incitec Pivot arm
Pacific Equity Partners is believed to be positioning itself to weigh a purchase of the fertiliser arm of Australian listed industrials group Incitec Pivot when it returns to the market.
Suitors shortlisted in $1bn Singapore Post’s Aussie contest
Buyout funds will go head to head in the coming weeks to gain control of Singapore Post’s Couriers Please and Freight Management Holdings.