champ, headland capital lift stakes in miclyn

late trades -> 5:14:27 pm 220 45,083,518 28 $99,183,740 2


4:42 am
Apr 23, 2013
Asia

Champ, Headland Capital Lift Stakes in Miclyn Express


By Gillian Tan

Australia’s Champ Private Equity and Hong Kong’s Headland Capital Partners have lifted their stakes in Miclyn Express Offshore Ltd. MIO.AU -1.29%, which provides vessels to support exploration and production of oil and natural gas, people familiar with the matter said Tuesday.

The private equity firms hired UBS AG UBSN.VX +1.41% to canvass the market for sellers at A$2.20 a share, a 14.6% premium to the stock’s closing price of A$1.92. That was its lowest closing price in 12 months after an updated outlook for earnings earlier Tuesday.

UBS helped them acquire another 8.1% each, or 22.5 million Miclyn Express shares. Champ and Headland owned 33% and 26% of the company, respectively, before the trades.

—Bloomberg News
Champ acquired its stake for A$199 million last September, from Macquarie Capital MQG.AU +1.23%–the investment banking arm of Macquarie Group Ltd. Headland bought its stake in August 2011.

The firms said in October 2012 that they would work together to “collectively achieve a positive outcome”, which included granting each other rights around the acquisition and disposal of shares.

Champ and Headland didn’t respond to requests for comment.

Based in Singapore, Miclyn charters a range of vessels to the oil and gas industry across Southeast Asia, Australia and the Middle East. It also operates a shipyard in Indonesia, which undertakes construction of new vessels and maintains internal and external boats.

“At this stage, we are uncertain about what their next steps are,” Miclyn Express Offshore general manager Adam Clayton told MoneyBeat.

Although listed in Australia, Miclyn Express Offshore is governed by corporate law in Bermuda. Champ and Headland now have a combined 75% stake and are able to vote for a takeover by amalgamation or merger, but this would require board approval. An amalgamation is similar to a scheme of arrangement.

They currently have two directors on Miclyn Express Offshore’s five-strong board, but could seek a special general meeting to increase their representation.

Under Bermuda’s corporate law, any bidder for Miclyn Express Offshore would need to acquire 95% of shares before it can compulsorily purchase the remaining stock. That compares to a 90% threshold in Australia.

http://blogs.wsj.com/moneybeat/2013/04/23/champ-headland-capital-lift-stakes-in-miclyn-express/