Allen & Overy is advising Kentix Limited, a wholly-owned subsidiary of Kerogen Investments, on its offer to provide both equity and mezzanine finance to ASX-listed company, AJ Lucas Group (AJL).
The transaction forms part of a major recapitalisation of AJL, which is expected to raise approximately $110 million.
Kerogen, a private equity fund adviser based in Hong Kong, has agreed to subscribe to a share placement equal to a 15 per cent interest in AJL to provide mezzanine finance of $66.5 million and be granted options to acquire further AJL shares and to sub underwrite a non-renounceable rights issue.
A&O partner Tony Sparks played a key role in advising Kerogen on the share placement, rights issue and options components of the transaction.
In addition to Sparks, the A&O team was led by corporate partner Aaron Kenavan, banking partner Chris Robertson and taxation partner Andrew Stals. They were assisted by corporate partner Grant Koch, banking partner Jason Huinink and senior associates Joy Lam, Daniel Lee and Ka Sen Wong.
Mallesons Stephen Jaques and Holding Redlich acted for AJL.