Two of Western Australia’s most iconic companies are looming as takeover targets and face the prospect of their respective founding families losing controlling interest.
Construction giant Multiplex Group and debt-ridden wine group Evans & Tate are the subject of interest by national and international companies, although neither has committed to an offer at this stage.
Multiplex is being targeted by Canada-based asset developer Brookfield Asset Management Inc, which this week made an approach to acquire the company’s non-trust businesses, including its construction operations.
The remainder of the group is expected to remain a managed listed entity.
Separation of the company’s assets would require the assent of Roberts Family Nominees, which holds about 25.6 per cent of Multiplex and is associated with Andrew and Tim Roberts, respectively chief executive and managing director developments at Multiplex.
The company announced earlier this week that any deal would be conditional on the approval of the Roberts family vehicle and that a potential acquisition price had not yet been provided.
Meanwhile, US-listed Yarraman Winery Inc submitted a $131 million merger proposal to the board of Evans & Tate in December, which was subsequently knocked back by the company in January.
Sydney-based Yarraman responded by upping its offer to $141 million on February 1, which the Evans & Tate board announced it would consider.
The offer was made through a conditional sale deed with Evans & Tate founder and former executive chairman Franklin Tate’s company, Grape Expectations Enterprises, with Yarraman originally proposing to buy 18.3 million shares, or 19.9 per cent, of Evans & Tate’s issued capital.
Under the revised offer, Mr Tate would be paid in Yarraman shares, on a one-for-6.75 basis, rather than being paid in cash, while the sale of the company would reduce Mr Tate’s holding from 31.5 per cent to 11.7 per cent.
Yarraman said the merged group would be better positioned to refinance Evans & Tate’s $90 million of debt.
