Australia’s Ironbridge completes Bravura take-private

Bravura was suspended from trading on September 26, according to a regulatory filing.

Ironbridge Fund II - a A$1.05 billion vehicle that closed in 2006 - already held a 67.12% stake in Bravura and offered A$0.28 per share in cash for the rest of the company via a scheme of arrangement. This represented a 65% premium to Bravura's closing price on June 27, the last trading day before the bid was announced.

A further 14.13% of the company was held by Fisher Funds, leaving a free float of just 18.8%. Limited liquidity posed a potential obstacle to shareholders' ability to realize their investments and this was one of the reasons why the Bravura board endorsed the offer.

Ironbridge supported the transaction with debt facilities provided by Commonwealth Bank of Australia, which include the rollover of existing debt Bravura had with the lender.

Bravura has more than 730 employees located in 16 offices around the world. The company operates as a transfer agency, managing all aspects of record keeping and reporting in relation to mutual funds held by retail and institutional investors. It also offers back office and processing services for wealth management and life insurance providers.

Bravura posted a net profit of A1.7 million for the 2013 financial year, down 68.5% year-on-year. Sales revenue fell 1.8% to A$124.3 million over the same period, while EBITDA dropped by 3.9% to A$22.3 million.

Ironbridge first invested in Bravura in 2009, paying AS33.4 million for a 33% stake via a rights issue.

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• Topics
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• Australasia
• Ironbridge Capital
• Financial Services
• buyout
• Australia