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
Insurance Lawyer (3-5 PAE)
Category: Insurance and Superannuation Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Dynamic organisation ·
View details
Legal Counsel
Category: Corporate and Commercial Law | Location: North Sydney NSW 2060
· 18 month fixed term contract · 3-5 years PQE with TMT exposure
View details
Coles Myer consolidates liquor empire

Coles Myer consolidates liquor empire

In a deal worth $306 million, Coles Myer has acquired 36 hotels, 103 bottle shops and 17 development sites from Hedley Liquor Group in an effort to promote its 1st Liquor brand throughout…

In a deal worth $306 million, Coles Myer has acquired 36 hotels, 103 bottle shops and 17 development sites from Hedley Liquor Group in an effort to promote its 1st Liquor brand throughout Queensland. The deal, which has taken nearly one and a half years to complete, involves a partnership arrangement between Coles and Hedley Liquor Group to develop the new sites.

Kerry Heilbronn, Freehills partner advising Coles Myer on the deal said that it was a “very strategic play” and that “it really gives Coles the opportunity to start to spin out its large box retail liquor sites right across Queensland, giving them a huge opportunity in the market”.

Heilbronn said the deal was “very complicated” due to the large number of properties involved and the fact that “a large portion of the consideration will be met by Coles issuing shares rather than paying in cash”.

Two other elements that necessitated careful analysis of the transaction were firstly that Hedley Liquor Group itself was and is acquiring other properties — thus according to Heilbronn, “all the assets were not even in the vehicles at the time we contracted”.

Secondly, as consideration is being paid in shares whose value shifts daily, Coles Myer “had to work out a pricing mechanism which was fair to both vendor and purchaser and that fairly pegged a price to reflect the value that the vendor thought he was getting”.

Freehills deployed a substantial amount of resources, large teams coordinating between its Brisbane, Sydney and Melbourne offices on what Heilbronn called a “terrific transaction involving virtually every aspect of corporate law”.

Coles Myer and Freehills are still awaiting ACCC clearance relating to the pricing mechanism, licensing and assets issues, but Heilbronn is confident that no problems will arise.

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

Coles Myer consolidates liquor empire
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
LCA president Fiona McLeod SC
07:05
Where social fault lines meet the justice gap in Aus
After just returning from a tour of the Northern Territory, LCA president Fiona McLeod SC speaks wit...
Marriage equality flag
07:00
ALHR backs High Court challenge to marriage equality postal vote
Australian Lawyers for Human Rights (ALHR) has voiced its support for a constitutional challenge to ...
Give advice
07:00
A-G issues advice on judiciary’s public presence
Commonwealth Attorney-General George Brandis QC has offered his advice on the public presence of jud...
APPOINTMENTS
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'...
opinion
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...
Help
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 & ...