NORTON Rose Australia has secured work on a major deal as listed investment companies Milton Corporation Limited and Choiseul Investments Limited have agreed on terms for a $2 billion merger.
The firm is advising Choiseul Investments, which has agreed to merge with Milton Corporation Limited by way of scheme of arrangement.
Choiseul and Milton are well known Australian listed investment companies. The two companies have been in talks since late August, and Milton said last week it had entered into a merger implementation agreement with Choiseul.
It is anticipated that the merged entity will have more than 18,000 shareholders and a market capitalisation in excess of A$2 billion.
The merger is conditional on, among other things, Choiseul shareholder and court approval. It is currently anticipated that the merger will be implemented in December 2010.
The legal team is led by financial institutions M&A specialist Tim Woodforde, assisted by Rodger Spencer, Susanna Taylor and Kathryn Martin.
Partner Tim Woodforde said the transaction is anticipated to provide benefits to shareholders, “including a reduced management expense ratio and a reduction in the extent to which shares trade at a discount to net asset backing, flowing from a larger combined asset base and increased liquidity”.