Successful $600m equity raising allows company to navigate the uncertain market from a position of strength
Arnold Bloch Leibler (ABL) has advised a billionaire Australian family on a blockbuster raising for their company.
The commercial law firm has advised the Wilson Family on the $600m equity raising of the ASX-listed Reece Group.
The group, which had solid performance before the pandemic, said earlier this month that it conducted the raising so that the company remained solid as it navigates the crisis. CEO Peter Wilson even told the Australian Financial Review that the funding will even allow it to acquire competitors that collapse.
The raising was comprised of a fully underwritten $232m accelerated pro rata non-renounceable entitlement offer, a fully underwritten $368m institutional placement, and a non-underwritten share purchase plan.
The Wilson family, which is the major shareholder of the company, committed $170m to the raising. The family was advised by a team headed by commercial partner Jonathan Wenig, who was supported by lawyer Max Grunwald.
“The equity raising will enable Reece to navigate through current market uncertainties from a position of strength,” Wenig said.
ABL’s commercial team also advised the Wilson family about two years ago when the family invested $300m into the Reece Group. The investment was made through an entitlement offer, which was part of a $560m equity raising.
In February, ABL played a key role in the sale of a popular property in Byron Bay to a financial giant. The record-setting deal is the biggest pub transaction in Australia, the firm said.
In October, the firm advised an Australian agricultural chemical company sell off its Latin American assets in a $1.19bn deal. The business and assets were acquired by a Japanese chemical giant.
