find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Property lawyer - Melbourne
Category: Property Law | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Impressive client list, national firm · Well-led and high-performing team
View details
Senior family lawyer - Melbourne
Category: Family Law | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Outstanding national firm · High-calibre family law team
View details
Allens on largest capital raising

Allens on largest capital raising

ALLENS ARTHUR Robinson worked on the largest ever capital raising by an Australian mining company and the third largest capital raising on the ASX this year in the Newcrest Mining Ltd…

ALLENS ARTHUR Robinson worked on the largest ever capital raising by an Australian mining company and the third largest capital raising on the ASX this year in the Newcrest Mining Ltd accelerated renounceable entitlement offer (AREO).

The firm was the Australian legal adviser to the company on the deal, which involved a capital raising of $2.042 billion by way of a pro rata offer to existing shareholders.

The transaction involved a non-traditional AREO, and included an accelerated offer to Newcrest’s institutional shareholders, another offer to Newcrest’s retail shareholders, and separate bookbuilds in relation to each of the institutional and retail offers.

Newcrest was not able to rely on common exemptions from US securities law requirements due to its large number of US investors.

Blake Dawson Waldron was the Australian adviser to the underwriters, while Skadden, Arps, Slate, Meagher & Flom was the US adviser to Newcrest.

Lead Allens partner on the deal, Greg Bosmans, said instability in global equity markets, and changing conditions in the gold market meant tight execution of the deal was critical to its success.

“The process probably really only started in earnest in mid-July, and then August was really a crunch month. Part of the issue during that process was that there were some ructions in the equity markets. There was a subprime issue that emerged in the US and that was affecting the equity markets worldwide.

“So there was a lot of uncertainty in relation to deal execution for a period there, and it was a case of ‘is it going to proceed or is it not?’. But we needed to put ourselves in the best position to take advantage of the circumstances,” Bosmans said.

The last four weeks of the deal were intense, according to Bosmans, while the planning phase has existed over a longer period.

“Part of the issue in this transaction was that Newcrest has a very significant shareholder base and, in order to ensure the offer could be extended to those investors, there was a significant requirement to ensure that US practice and legal requirements were followed. This meant a whole lot of additional work in terms of disclosure and diligence and those sorts of things in order to ensure that we were able to achieve that,” he said.

Bosmans said that it was unlike most companies that don’t have that size investor base, and that can prepare a relatively straightforward rights issue type prospectus.

“In this case there was a very substantial, few-hundred-page document that was needed to be prepared for US purposes. Then the process of making sure that that tied properly with the Australian side of things was part of the additional challenge,” he said.

As well as Bosmans, the Allens team comprised partner Rob Pick, senior associate Gadi Bloch, and Georgie Fast, Paul Bernath, Martin Hecht, Toby Woods and Romy Weisfelt.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Allens on largest capital raising
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Aug 23 2017
NT Law Society sounds alarm on mandatory sentencing
The Law Society Northern Territory has issued a warning over mandatory sentencing, saying it hasn’...
Aug 22 2017
Professionals unite in support of marriage equality
The presidents of representative bodies for solicitors, barristers and doctors in NSW have come toge...
Aug 21 2017
Is your firm on the right track for gig economy gains?
Promoted by Crowd & Co. The way we do business, where we work, how we engage with workers, ev...
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...