offers $3.35 for alh

Coles Myer, Australia's biggest retailer by sales, and Macquarie Bank plan to
acquire ALH through a joint venture company - CMM Hotel & Retail Investments
Ltd. - with 60% of its equity provided by Macquarie and the balance by ALH.
Coles Myer's contribution to the joint venture's equity is A$172 million, with
Macquarie contributing about A$260 million.
Coles Myer Chief Executive John Fletcher said Wednesday the proposed
transaction would also see Coles acquire leases for 17 hotels in Queensland
state and the development rights to 14 bottle shops in Victoria for about A$255
million.
The bottle shops have "outstanding potential" for redevelopment as large
liquor sores," Fletcher said in a statement.
Coles Myer would also have first and last right of refusal over certain retail
development opportunities in ALH's existing and future portfolio.
Woolworths, Australia's second largest retailer by sales, originally offered
A$2.75 a share for ALH, but late last month raised the offer to A$3.15 after
U.S. private equity investor Newbridge Capital Inc. offered A$3.05.
ALH, valued by KPMG at between A$3.19 and A$3.42 a share, controls about 4% of
Australia's A$11 billion retail liquor market.
Coles said its A$450 million investment, which includes the equity in the
joint venture and the acquisition of the leases and properties, will be earnings
per share positive in the first year.
Fletcher said Coles Myer still plans "substantive capital management
initiatives" in its current fiscal year, "albeit in a modified form."
Macquarie Bank said it has advised on the establishment of a A$440 million
senior debt facility, underwritten and arranged by Barclays Capital, to help
fund the takeover.
The takeover is conditional on approval from 75% of ALH shareholders and on
Federal Court approval.