Crescent wins investor support after raising ClearView offer

GPG, which owns 47.8% of ClearView, dismissed Crescent's earlier bid as wholly inadequate, saying it didn't reflect the company's value. The investor indicated yesterday that it was prepared to accept the improved offer and sell its 210.7 million shares.

In addition to receiving A$0.55 per share, ClearView shareholders will be entitled to a A$0.018 dividend already declared, plus another A$0.022 dividend once Crescent's offer becomes unconditional. This is in turn dependent on regulatory approval and the acquisition of more than 50% of ClearView's shares.

"For some time GPG has been an announced seller of its ClearView shareholding, giving rise to a situation not satisfactory to either GPG or the company and its share register," Ray Kellerman, ClearView's CEO, said in a regulatory filing. "Under the negotiated arrangements, GPG is able to fulfill its objective, ClearView shareholders receive a substantially increased payment opportunity, and the company gains a majority shareholder with the capital and experience to add value."

ClearView, a provider of life insurance and financial planning advice, has seen its share price jump nearly 27% since Crescent first expressed an interest in the company. As of August 30, it was trading at A$0.59.

ClearView is being advised by Emerald Partners, while Gilbert + Tobin is providing legal counsel to Crescent.

Weak public market valuations have led to several private equity buyout offers for listed Australian companies, although Tim Sims, co-founder and managing director of Pacific Equity Partners (PEP), told AVCJ that other, more fundamental factors are also at play: overseas institutions have pulled back from Australian equities; questions have been raised about the high levels of equity concentration among domestic institutions; and retail investors have shifted their capital into bank deposits.

Recent takeover bids haven't been well received by company boards. It took PEP several weeks to get permission to carry out due diligence on cleaning and catering services contractor Spotless, with a transaction finally going through last month, while Billabong rejected TPG Capital's advances despite its need for capital to service debts.

However, CHAMP Private Equity's A$186 million acquisition of Gerard Lighting Group appeared to progress reasonably smoothly.

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• Topics
• Australasia
• Buyouts
• Financials
• buyout
• Australia
• Financial Services
• Crescent Capital Partners