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The global firm assisted dairy giant Murray Goulburn Co-operative on its new capital structure.
Firms: Herbert Smith Freehills (Murray Goulburn); King & Wood Mallesons (Macquarie)
Value: $500 million
Area: Banking and finance
Key players: Melbourne partners Tim McEwen (pictured) and James Crowe lead the HSF team, supported by senior associate Nick Golding and solicitors Peter Moh and Lauren Faba. Executive counsel Marita Batty, as well as a number of other specialists, also advised.
Deal significance:
Murray Goulburn is Australia’s largest dairy foods company, supplying dairy foods and products domestically and internationally with its flagship Devondale, Liddells and Murray Goulburn Ingredients brands.
According to a statement from HSF, Murray Goulburn’s new Capital Structure involved the establishment of a unit trust (MG Unit Trust), a special purpose funding vehicle, which listed on the ASX on 3 July 2015.
“The initial public offer (IPO) of units in the MG Unit Trust raised A$437.7 million, with an additional A$62.3 million raised through two supplier share offers in Murray Goulburn,” the statement said.
“The funds raised by the MG Unit Trust have been invested into Murray Goulburn to provide unitholders with an economic exposure to Murray Goulburn equivalent to the economic exposure of shareholders in Murray Goulburn. The Capital Structure includes a profit-sharing mechanism which aligns the interests of suppliers and unitholders, with each benefitting from an increase in milk prices.”
HSF confirmed the IPO did not change Murray Goulburn’s ownership structure.
The new structure also involved establishing a shareholder trading platform (STP) – “a private trading platform allowing Murray Goulburn’s shareholders to buy and sell their shares at the prevailing unit market price”.
Macquarie Capital (Australia) Limited acted as sole lead manager of the capital raising and Macquarie and Lazard Australia acted as financial advisers to the Capital Structure.
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Stefanie Garber
