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Corporate
Finance
SPECIAL REPORT
Photo by Scott Graham on Unsplash
Corporate finance
F E AT U R E M&A deals shift the dial
Several Perth companies executed value-creating mergers & acquisitions
last year, none more so than Pilbara Minerals.
Mark Beyer
mark.beyer@businessnews.com.au
@AMarkBeyer
8-PAGE FEATURE
A
RULE of thumb in take-
overs is that the bidder’s
share price falls after a
deal is announced while the tar-
get’s share price rallies.
Recent deals by prominent
Western Australian companies
have defied this rule.
The biggest M&A deal of the
year is a case in point.
The share price of both North-
ern Star Resources and Saracen
Mineral Holdings rallied in the
weeks after they announced a
‘merger of equals’ in October.
Nickel miner IGO has enjoyed
strong share price gains since
it announced the $1.9 billion
purchase of a minority stake
in Tianqi Lithium’s Australian
operations last month.
Similarly, MACA’s share price
is up strongly since it unveiled DEAL: Ken Brinsden says Pilbara Minerals had been ready to move quickly on its Altura acquisition. Photo: Matt Jelonek
the $175 million purchase of
Downer’s western region con- just two days after the strug- “They were quite close to our between the two operations,” “That was the way they dealt
tract mining business. gling miner was placed in business anyway.” he said. with us.”
The biggest gains, however, receivership. Mr Brinsden said Pilbara “The reality is, it has the effect In the lead-up to Altura’s
have been enjoyed by Pilbara Pilbara was advised by law had worked closely with mul- of sterilising ore, in particular lenders placing the company
Minerals’ shareholders, since firm Allen & Overy and invest- tiple equity and debt providers on the Altura side of the fence.” into receivership, Pilbara had
the company announced in ment bank Macquarie Capital, during 2020. He also recalled discussions, been one of several companies
late October it planned to which topped Business News’ “We were running multiple soon after joining Pilbara, about in Altura’s ‘data room’.
acquire Altura Mining’s lithium league tables for both M&A streams for refinancing the a friendly merger. “We participated in that pro-
operations. and capital raisings in 2020 (see Nordic bond,” he said. “Going back a long way, there cess in the knowledge we might
Helped by a recovery in the below). That played a part in Aus- was a discussion about whether be part of their refinancing solu-
global lithium market, Pilbara’s Ma nag i ng d i rec tor Ken tralianSuper and private equity there was a merger to be done, tion,” Mr Brinsden said.
share price has nearly tripled Brinsden said he was able to investor Resource Capital Funds one direction or the other, but we “The conclusion we came to
over the past three months. act swiftly because of the work signing up as major backers of could never agree terms,” he said. was that it was very difficult to
The $US175 million Altura Pilbara had done in previous its $240 million capital raising. In addition, Mr Brinsden said make an investment in Altura
deal, which is close to com- months and years. Mr Brinsden disclosed Pilbara Pilbara had been in discussions because in essence there was no
pletion, will enable Pilbara to “Knowing that Altura was and Altura had engaged in many over the past two years with equity value.”
extract large operational syn- running out of rope, we were discussions over the years about Altura’s lenders. The poor state of the Altura
ergies by bringing together ready to act at short notice,” Mr operational synergies from their “I think their logic in talking business was highlighted by
two neighbouring m in ing Brinsden told Business News. neighbouring operations. to us was to say ‘what’s this lith- administrators Cor Cordis.
operations. “The main reason that hap- This resulted in an MOU, ium business, what are you guys In a report to creditors, it said
It will also go down as one pened was because we had which subsequently expired. up to’,” he said. Altura had not been profitable
of the most deft M&A deals already brought the financiers “ The big elephant in the “That led to on-and-off dia- since 2018 and had been insolvent
of recent years, with Pilbara along with us during the course room that never got resolved logue to say ‘there might be an since at least 6 February 2020.
announcing a conditional agree- of 2020 for the purpose of refi- was, what do we do with the opportunity, we should keep in The Cor Cordis report said
ment with Altura’s creditors nancing our (Nordic) loan. tenement boundary that sits touch’. two parties submitted bids for
20 | January 18, 2021
FEATURE
As a result, it topped Business
It’s News’ league tables for both
M&A and ECM deals in 2020.
bounced back Director John Stanning said
2020 had been a volatile year,
into one of with the second half being par-
the best year’s ticularly buoyant.
“It’s bounced back into one of
we’ve had the best year’s we’ve had,” Mr
Stanning said.
- John Stanning In the M&A space, it also
advised Saracen on its merger
in a big way in growth until we with Northern Star, to create
get a very, very clear signal from a company with a combined
the market,” he said. market value of $16 billion.
“When we are making rea- Macquarie advised Iluka
sonable margins, we will turn Resources of its demerger of
our minds back to growth in Deterra Royalties and Downer
production, which initially will on the sale of its contract mining
include switching back on the business to MACA.
Altura operations but certainly In addition, it advised Mel-
no sooner than the middle of bourne-based New Century
this year.” Resources on the proposed
acquisition of the Goro nickel
Adviser rankings mine in New Caledonia, how-
The Pilbara Minerals transac- ever, this deal did not proceed.
tion was one of five M&A deals The poor state of the Altura
worth about $8 billion that Mac- business was highlighted by
PIPELINE: John Stanning says 2020 has been one of Macquarie Capital’s best years in
quarie Capital advised on last administrators Cor Cordis.
WA. Photo Gabriel Oliveira
year. In a report to creditors, it
It also had a lead role on 10 said Altura had not been prof-
Altura, though the second bid Mr Brinsden said his team was Pilbara was awaiting a stronger WA-related ECM deals worth itable since 2018 and had been
was withdrawn after it made working on ways to integrate market recovery. a total of $3.6 billion (see
further enquiries. the operations but cautioned “We are not prepared to invest page 24). Continued on page 26
tglaw.com.au
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FEATURE CORPORATE FINANCE
Advisers enjoy strong flow of listi
PLUGGED IN: DUG Technology founder Matt Lamont led his company to an ASX listing SMARTER: Stewart Washer chairs cannabis medtech business
last year. Photos: Gabriel Oliveira Clinics.
32
were (ready) to support activity,” “WA is a bit of a hidden secret
A post-pandemic bounce back in he said. when it comes to medtech and
initial public offerings could indicate
While WA was usually domi-
nated by smaller resources IPOs,
IPOs IN biotech,” he told Business News.
“There’s a number of corporate
confidence among WA investors. he said there had been plenty of 2020 advisers in WA that have a keen
activity outside that sector. Source: Data & Insights focus on medtech and biotech.”
One example was GenusPlus, a InteliCare’s raising was an
Matt Mckenzie busy as we’ve seen towards the power provider which raised $33 production without building med- eight-week process challenged
matthew.mckenzie@businessnews.com.au back of the year.” million in a December listing, with ical evidence for use cases. by the COVID-19 outbreak, Mr
@Matt_Mckenzie_ That was expected to continue Bell Potter advising. “(There) is a big glut of cannabis Hardcastle said, but this was
WHEN the ASX 200 plunged 36 into 2021, he said. Similarly, the two largest IPOs out there,” Mr Washer said. mitigated because the company’s
per cent over a few weeks during Valuations were high, making it during 2020 were not resources “Production ran ahead of medi- technology was probably made
March 2020 as a COVID-induced easier to raise capital. companies, although both had cal evidence.” more relevant by the pandemic.
recession loomed, investors surely Government stimulus and high strong resources links. Similarly, while there was solid HWL advised on 10 IPOs
did not expect they would soon commodity prices were supporting Duratec is an engineering investor interest in cannabis, it nationally last year, he said, nine
see a surging IPO market. that confidence, Mr Foster said. and construction business with was not at the level of two years of which were out of the Perth
But 2020 proved to be a strong Bell Potter director of corporate resources clients, while DUG ago when he said some weaker office.
year for Western Australian busi- finance Stephen Kite agreed the Technology started life providing companies were backed. There was a strong pipeline for
nesses listing on the stock exchange. high iron ore and gold prices were computing power for oil and gas. “Investors are getting smarter,” 2021, Mr Hardcastle said, and the
More than $340 million was a factor, as was stimulus. Mr Washer said. firm had 10 to 15 good prospects.
raised in 32 initial public offerings, The Reserve Bank of Australia Going green The Emerald IPO started before While the IPO boom is engag-
according to Business News Data unleashed about $130 billion to sup- Medical technology business Christmas 2019 and listed before ing advisers, Argonaut executive
& Insights. port economic activity during 2020. Emerald Clinics, now trading as COVID-19 hit markets. chairman Eddie Rigg cautioned
That compared with $321 mil- “The biggest determinant is the Emyria, listed in February 2020. Mr Washer said that led many about the surge of junior miners
lion from 18 listings in 2019. amount of central bank stimulus … Emerald, Little Green Pharma, funds to sell their stakes and put- coming to market.
Steinepreis Paganin was legal in the last year or so,” Mr Kite said. and Live Verdure were all 2020 ting downward pressure on the “We didn’t see a lot of quality in
adviser on 11 of the 2020 IPOs. It had provided a large pool of IPOs which have a cannabis or share price. there,” Mr Rigg said.
Managing partner Mark Foster equity capital for ASX and other hemp focus. “We’re getting a stable following Gilbert + Tobin partner Justin
said it was the busiest year since markets, he said. Emerald chair Stewart Washer now,” he said. Mannolini said the same question
2007. Mr Kite agreed the IPO market said because cannabis had only HWL Ebsworth partner Shaun was asked during every market
“It was a tale of two periods,” Mr had been very poor in the first six recently been legalised for com- Hardcastle said there had been a rally.
Foster said. months of 2020. mercial purposes, the field was renewed interest in cannabis. But he believes the tougher reg-
“Early in the year, it was unprec- “As the market matured and still maturing, but quickly. The law firm advised on the ulatory standards applied by the
edented in terms of lack of work, the recovery matured, and there That was demonstrated by the InteliCare raising, another med- ASX in recent years have served
and after Easter, it got almost as was greater confidence, markets willingness of businesses to enter tech business. to raise the bar for new listings.
22 | January 18, 2021
CORPORATE FINANCE FEATURE
ngs
WA IPOs in 2020
Company Advisers Lawyers value ($m)
Duratec Euroz Hartleys K&L Gates 52.9
DUG Technology Canaccord Genuity Clayton Utz 34.8
GenusPlus Group Bell Potter Securities Gilbert + Tobin 32.8
WA Kaolin Canaccord Genuity, JP Equity Partners Gilbert + Tobin 22
Playside Studios Steinepreis Paganin 15
Pyx Resources HopgoodGanim Lawyers 14
COSOL Euroz Hartleys Murcia Pestell Hillard 12
Little Green Pharma Canaccord Genuity DLA Piper, HWL Ebsworth Lawyers 10
Cobre Ashanti Capital 10
Australian Gold and Copper Taylor Collison HopgoodGanim Lawyers 10
Siren Gold Steinepreis Paganin, HWL Ebsworth Lawyers 10
AML3D Steinepreis Paganin 9
Coda Minerals CPS Capital Group Blackwall Legal LLP 8.5
Caspin Resources Ashanti Thomson Geer 8
Miramar Resources Shaw and Partners Steinepreis Paganin 8
Errawarra Resources Euroz Hartleys Steinepreis Paganin 6
Emerald Clinics PAC Partners HWL Ebsworth Lawyers 6
Megado Gold Canaccord Genuity Steinepreis Paganin 6
Pathfinder Resources Arq Capital Steinepreis Paganin 6
Kingfisher Mining CPS Capital Group HWL Ebsworth Lawyers 6
Rincon Resources PAC Partners, Ironside Capital Steinepreis Paganin 6
InteliCare JP Equity Partners HWL Ebsworth Lawyers 5.5
Emyria, which listed as Emerald DC Two Alto Capital Nova Legal 5.5
Metal Hawk Canaccord Genuity HWL Ebsworth 5.5
Dynamic Drill and Blast JP Equity Partners HWL Ebsworth Lawyers 5
“The IPO process is getting Desert Metals Morgans Financial Steinepreis Paganin 5
harder,” he said. Live Verdure CPS Capital Group HWL Ebsworth Lawyers 5
“The ASX is applying a much
Prospech 5
tougher filter.
“Companies we worked with Kaiser Reef Peloton Capital Steinepreis Paganin 4.5
had more work than they would BPM Minerals PAC Partners Steinepreis Paganin 4.5
have anticipated to ensure they
Australian Sunny Glass Group (formerly Ventus Aqua ) Townshend Capital Blackwall Legal LLP 3
had the systems and processes
suitable for an ASX listing.” Benz Mining Corp HWL Ebsworth 2
January 18, 2021 | 23
FEATURE CORPORATE FINANCE
“Even the crap producers are
making good money,” he said.
Mr Rigg said WA was able to
take advantage of the favour-
able global trends because it
was a great place to explore and
produce.
This opinion was backed up by
Canada’s Fraser Institute, which
ranked WA as the most favourable
jurisdiction globally for mining.
The sector had also been
bolstered by two spectacular dis-
coveries in WA, first by De Grey
Mining (at Hemi) and then by
Chalice Gold Mines (at Julimar).
“They were just so positive for
the sector, it’s been unbelievably
important for improving senti-
ment,” he said.
Lead managers
Sydney-based Macquarie had
a lead role on 10 WA-related ECM
deals worth a total of $3.6 billion
during 2020 (see table).
After adjusting for the role
played by joint lead managers,
Macquarie raised $2 billion.
Its ranking was boosted by
FLOWS: Eddie Rigg says the start of 2021 is the busiest period he has experienced. Photo: Gabriel Oliveira
Macquarie’s Perth office advising
Brokers upbeat on raisings
on some large national trans-
actions, including a $1.1 billion
block trade for Wesfarmers (of
Coles group shares) and a $1 bil-
lion raising for Melbourne-based
For the second year running, Macquarie Capital and Canaccord Genuity Newcrest Mining.
Its other key clients included
have topped Business News’ league table for capital raisings. Perth companies IGO, Pilbara
Minerals, Emeco Holdings, Belle-
vue Gold, Dacian Gold and Chalice
Mark Beyer confident the positive finish to transition, driving demand for driver because there is so much Mining.
mark.beyer@businessnews.com.au 2020 would continue this year. exposure to the green economy, idle capacity,” he said. Mr Owen said the investment
@AMarkBeyer “I’ve never seen it so busy in the including battery minerals for Macquarie Capital director bank had benefited from its long-
COMPANIES looking to raise first week of January,” he said. battery storage, electric vehicles John Stanning is more bullish on term presence in WA.
fresh capital enjoyed a strong Like other market watchers, Mr and renewables. lithium. “A lot of those transactions
finish to 2020 and most brokers Rigg said the main driver of global This underpinned a positive He said a big factor was the were the culmination of long-
and advisers are confident that equity markets was last year’s long-term outlook for battery quality of the hard rock lithium term relationships we have with
will continue this year. massive central bank stimulus. metals such as lithium, nickel deposits in Western Australia, local corporates over many years,”
For most dealmakers, 2020 “Every time there is a major sulphate and copper. which made them ideal for use he said.
ended up being a good year for fiscal stimulus, there is a two Mr Rigg said there were about in lithium hydroxide for higher Canaccord Genuity was by far
equity capital markets (ECM) to five-year period of outper- 10 so-called battery metals and energy-intensity batteries, com- the busiest player in the market
deals. formance for commodities,” he the impact would be highly pared with the ‘brine’ deposits last year.
“The ECM floodgates opened said. variable. that were abundant in other It had a lead role on 92 ECM
in July,” Gilbert + Tobin partner “We’re in the early days of a “The one I like best is copper,” countries. deals worth $2.5 billion in
Justin Mannolini said. long trend.” he said. “Our research team have iden- aggregate.
Mr Mannolini said 2020 had Macquarie Capital director He said the market for copper tified battery minerals, including That followed 62 deals worth
been a year in three parts, with Stuart Owen said the support was already bigger than nearly lithium and nickel, as winners on $1.4 billion in 2019.
the first two months being very for capital raisings had predom- all other battery metals com- a five-year view,” Mr Stanning This strong deal flow highlights
positive before the onset of inantly come from Australian bined and was set to grow, with said. the success of Canaccord Genui-
COVID caused a period of market institutions. electric vehicles using nearly four Mr Rigg expects the gold price ty’s $25 million acquisition of
wobbles. With interest rates at record times as much copper as a petrol will go back above $US2,000, from Perth-based Patersons Securities.
Even then, most companies lows, they were chasing higher vehicle. about $US1,850 currently, but the Canaccord led transactions for
looking to raise capital during returns in equities. “The other one that everyone impact on local producers will be companies as diverse as Lynas Rare
the second quarter, often to repair “There is also the strong com- is strong on is nickel sulphate,” offset by a stronger Australian Earths, Resolute Mining, Galaxy
battered balance sheets, had been modity outlook which leads to a he said. dollar. Resources, Bellevue Gold, De Grey
able to do so. strong risk appetite.” That’s because all battery types Nonetheless, he emphasised Mining and Salt Lake Potash.
Argonaut executive chairman Mr Owen said the market was need nickel. that even at current prices, local Canaccord’s WA deals included
Eddie Rigg, who spoke to Busi- also responding to the trends He is less positive on lithium. miners were generating great lead roles on four IPOs (see
ness News earlier this month, is toward digitisation and energy “We don’t see lithium as a major margins. page 22).
24 | January 18, 2021
CORPORATE FINANCE FEATURE
There is Data & Insights Equity Capital Markets - Top Advisers 2020
also the strong Lead managers Number of Value of deals
deals ($m)
Amount raised
($m) Key clients
commodity outlook Macquarie Capital 10 3,649 1,957 Wesfarmers (block trade), Newcrest Mining, IGO, Pilbara Minerals, Emeco Holdings, Bellevue Gold,
Dacian Gold, Chalice Mining
Lynas Rare Earths, Resolute Mining, Galaxy Resources, Bellevue Gold, De Grey Mining, Salt Lake Potash,
which leads to Canaccord Genuity 92 2,529 1,586 Dacian Gold, DUG Technology IPO
a strong risk UBS 3 2,279 1,139 Wesfarmers (block trades), Galaxy Resources
Goldman Sachs 4 1,532 736 Wesfarmers (block trade), Coronado Global Resources, Emeco Holdings
appetite - Stuart Owen
Euroz Hartleys* 72 1,258 939 Salt Lake Potash, MACA, Emerald Resources, Firefinch, Ora Banda Mining, Duratec IPO, Mincor Resources
Global investment banks UBS
and Goldman Sachs ranked high Citigroup 1 766 383 IGO
on the ECM league table, after
Argonaut 24 491 326 De Grey Mining, Pantoro, Capricorn Metals, Northern Minerals, Family Zone Cyber Security, Atrum Coal
having lead roles on a handful of
large WA-related transactions. Bell Potter Securities 26 470 303 Chalice Mining, BCI Minerals, PYC Therapeutics, GenusPlus Group, De Grey Mining, Horizon Minerals
Perth-based brokers Euroz and
Hartleys merged during the year, Merrill Lynch 1 425 213 Lynas Rare Earths
having been market leaders in
Petra Capital 7 317 218 Geopacific Resources, Red 5, Big River Gold, Galena Mining, Good Drinks
their own right in many previous
years. Morgans Financial 12 264 195 Panoramic Resources, Kalium Lakes, Stavely Minerals, Poseidon Nickel
Combining all deals led by the
two firms during the year, they Ashanti Capital 11 105 82 Trident Royalties, GenusPlus Group, Cobre, Canyon Resources
had a lead role on 74 transactions
Shaw & Partners 12 102 75 Family Zone Cyber Security, Strandline Resources, Saturn Metals, Pacifico Minerals
worth nearly $1.3 billion.
Perth-based Argonaut had a Taylor Collison 17 81 63 Rox Resources, Kalamazoo Resources, Core Lithium, Matsa Resources
lead role on 24 transactions worth
Number of Value of deals
$491 million. Legal advisers deals ($m)
Key clients
That placed it just ahead of
HWL Ebsworth Lawyers 80 1,218 Bellevue Gold, Chalice Mining, Red 5, Salt Lake Potash, Panoramic Resources, Kalium Lakes, Calidus Resources
national firm Bell Potter Secu-
rities, which was lead manager Herbert Smith Freehills 6 1,132 IGO, Gascoyne Resources, Australian Finance Group, Capricorn Metals
on 26 transactions worth $470
million. Corrs Chambers Westgarth 15 783 Kape Technologies plc, Geopacific Resources, Dacian Gold, AEX Gold Inc, MACA, Decmil
Other firms that were busy
Gilbert + Tobin 21 558 Salt Lake Potash, Panoramic Resources, Firefinch, BCI Minerals, Mincor Resources, WA Kaolin IPO
during the year, mostly at the
junior end of the market, included Ashurst 6 529 Dacian Gold, Panoramic Resources, Mincor Resources
Taylor Collison and local broker
CPS Capital Group.
King & Wood Mallesons 6 507 Lynas Rare Earth, Australian Finance Group, Cardinal Resources
Legal advisers Allen & Overy 8 473 Pilbara Minerals, Dacian Gold, Tigers Realm Coal, Shaw and Partners
Among the law firms, HWL Steinepreis Paganin 61 422 Emerald Resources, Peel Mining, Playside Studios IPO, Otto Energy, PictureWealth, Douugh, Siren Gold IPO
Ebsworth Lawyers was the
DLA Piper 12 348 Resolute Mining, Kalium Lakes, Ora Banda Mining, Little Green Pharma IPO
market leader in 2020.
It topped the rankings for both Thomson Geer 15 259 Piedmont Lithium, PYC Therapeutics, Musgrave Minerals
number of transactions (80) and
value ($1.2 billion). Hogan Lovells 3 216 Emeco Holdings, Peninsula Energy
This is a highly unusual
HopgoodGanim Lawyers 10 203 Red 5, Breaker Resources, Pyx Resources IPO
outcome – typically the big
international firms like Herbert *Includes all Euroz and Hartleys deals
Smith Freehills and King & Wood For full details, go to: businessnews.com.au/bniq/Corporate-Finance/ECM/Top-Deals
Mallesons top the league table for
deal value while local firms such active law firm servicing small and Geer and will be looking to make rapidly than at any time in his- could be disappointed by the
as Steinepreis Paganin top the list mid-cap listed companies. their presence felt this year. tory,” he said. impact.
for deal number. The combination of HWL and With very low interest rates The final word goes to
HWL’s top ranking capped off a Bellanhouse bumped Steinepreis Future risks and relatively high yields on Cottesloe-based fund manager
period of rapid expansion for the Paganin off its perch. Looking ahead, Katana Asset shares, he believes advisers and Packer & Co, which is extremely
national firm, helped by its 2019 The ranking of law firms may Management portfolio manager investors have no alternative but bearish.
acquisition of successful Perth change again this year, following Romano Salla Tenna is one of the to increasingly allocate money to “Never in our careers have
boutique Bellanhouse Lawyers. the resignation of HWL partner most bullish people in the market. equities. the investment risks been
The second ranked firm by deal (and Bellanhouse founder) Bryn “Unlike many, we are not cau- Mr Mannolini agrees the out- greater,” the firm said in its latest
value was Herbert Smith Freehills Hardcastle. tiously optimistic,” he said. look is positive but cautions the newsletter.
– it advised on six transactions He is due to start this year “We are, rather, outrightly window of opportunity for capi- “The world economy is a sham-
worth $1.1 billion. with Allens, which is looking to bullish about the outlook for the tal raisings could shut quickly. bles, with escalating trade wars
By number, the second ranked broaden its corporate practice. coming year.” He observed the market had and severely overvalued invest-
firm was Steinepreis Paganin, Another big change last year His confidence is based on the run hard on the US election result ment markets,” Packer said.
which advised on 61 transactions was the defection of most of DLA successful intervention by global and positive news about COVID “Our primary goal is to survive
worth $422 million. Piper’s WA corporate law team. central banks. vaccines. what we believe is an incredibly
Perth-based Steinepreis Paganin Led by Michael Bowen, the “Central banks globally have In both cases, Mr Mannolini turbulent investing environment
had for many years been the most 10-member team is now at Thomson ‘printed’ more money more said there was a risk the market with our capital intact.”
January 18, 2021 | 25
FEATURE CORPORATE FINANCE
Data & Insights M&A - Top Advisers 2020
Perth firm LSV Borrello in
June 2019 and poached most of
DLA Piper’s corporate team in
Number of August last year.
Financial advisers deals Value of deals ($m) Key clients
As a result, DLA Piper and
Macquarie Capital 5 8,020 Saracen Mineral Holdings, Iluka Resources, Pilbara Minerals Thomson Geer both worked for
the same clients on the same
Sternship Advisers 9 6,291 Northern Star Resources, Pilbara Minerals, Primero Group transactions at different times.
The Business News data-
Euroz Hartleys 8 2,819 Cardinal Resources, Spectrum Metals, MACA
base also highlights the top
public relation firms in the
Canaccord Genuity 5 2,361 Cardinal Resources
local market, including FTI
BMO Capital Markets 4 2,353 Cardinal Resources Consulting, Cannings Purple,
Citadel-MAGNUS and Read
Gresham Partners 3 2,220 Iluka Resources, Infrastructure Capital Group Corporate.
Grant Samuel 1 1,900 Tianqi Lithium Deal outlook
Mr Stanning said there would
PwC 5 1,092 Dongshan Investment, RM Williams, Zenith Energy
be two key drivers for M&A
Azure Capital 8 947 ENGIE ANZ, Altura Mining, Elemental Infrastructure BidCo activity in 2021.
“I see more consolidation
Morgan Stanley 1 578 Shandong Gold where there are logical deals to
be done in Australia, across both
Bacchus Capital 1 565 Nordgold gold and battery minerals,” he
Number of said.
Legal advisers deals Value of deals ($m) Key clients
“Shareholders have shown
they will be supportive, and
Ashurst 6 8,213 Northern Star Resources, Deterra Royalties
companies get good re-ratings,
DLA Piper 12 6,623 Saracen Mineral Holdings, Nordgold, Resolute Mining on logical accretive deals that
make sense for both parties.”
Norton Rose Fulbright 6 5,514 QGC Common Facilities Company, Windfield Holdings He c ited t he Nor t her n
Sta r -Sa rac en dea l , wh ic h
Herbert Smith Freehills 9 4,136 IGO, Iluka Resources, ENGIE ANZ brought together two compa-
nies that were already joint
King & Wood Mallesons 11 3,884 Alacer Gold, Shandong Gold, Brookfield
owners of Kalgoorlie’s Super
Clayton Utz 9 2,947 Tianqi Lithium, Tattarang, Invesco Pit.
“Investors will support nil or
HopgoodGanim Lawyers 20 2,502 Cardinal Resources, Aeris Resources low-premium transactions if the
assets end up in the best hands.”
Allen & Overy 9 1,649 Total Oil, Mitsubishi Corporation, Pilbara Minerals Mr Stanning also antic-
ipates renewed interest in
Gilbert + Tobin 21 1,038 Cardinal Resources, RM Williams
offshore acquisitions, subject
to COVID-19 vaccines allowing
Corrs Chambers Westgarth 15 474 Pilbara Minerals, NRW Holdings, Perseus Mining
a resumption of international
Thomson Geer 14 408 Resolute Mining, Primero Group, Cassini Resources travel later this year.
“Some of our clients certainly
HWL Ebsworth 22 362 Chifeng Jilong Gold Mining, Dacian Gold will be looking offshore, so that
leg of growth will open again.”
For full details, go to: businessnews.com.au/bniq/Corporate-Finance/MA/Top-Deals Gilbert + Tobin partner Justin
Mannolini anticipates a shift in
M&A deals Chinese company Shandong
Gold ended up winning the take-
Legal advisers HopgoodGanim was one of
the busiest law firms, advising
2021.
He said the major trans-
shift the dial over battle, though only after Ashurst topped the rankings
for law firms, after advising
on 20 transactions worth $2.5 actions of 2020 were logical
lifting its bid price several times. billion. mergers where management
Azure Capital continued to on six transactions worth $8.2 As noted above, this included could extract incremental gains
rank as one of the busiest corpo- billion. advising Cardinal Resources on from operational synergies.
From page 21 By far the biggest was advis-
rate advisers in the local market, three separate takeover bids. Mr Mannolini expects a dif-
insolvent since at least 6 Febru- working on eight transactions ing Northern Star. Gilbert + Tobin also had ferent focus this year.
ary 2020. during the year. It was followed by DLA Piper, a busy year, advising on 21 “I think you will start to see
The Cor Cordis report said This included helping Altura which advised on 12 transac- transactions. more step-out transactions,” he
two parties submitted bids for with its failed refinancing. tions worth $6.6 billion. Clayton Utz’s WA practice said.
Altura, though the second bid PCF Capital Group was Its major clients included Sar- gained a boost from its relation- “That will be the theme that
was withdrawn after it made another busy adviser, working acen, Nordgold, Resolute Mining ship with Andrew and Nicola dominates M&A in 2021.”
further inquiries. on six transactions in the junior and Genesis Minerals. Forrest’s private company He cited the positive reac-
Cardinal had a team of four mining sector. Other law firms that ranked Tattarang. tion to IGO’s Tianqi deal, which
financial advisers – along with Sydney-based Grant Samuel high on deal value included It advised on six purchases by included a 25 per cent stake in
HopgoodGanim Lawyers – help- and global banking group Stand- Herbert Smith Freehills (which Tattarang, including its purchase the world’s largest lithium mine
ing it deal with three takeover ard Chartered ranked high on advised IGO) and King & Wood of boot maker RM Williams. at Greenbushes.
offers (and a fourth unsolicited deal value after advising on one Mallesons (which advised Shan- A new addition to the list is “The market loves access to
proposal). transaction – IGO’s Tianqi deal. dong Gold). Thomson Geer, which bought global, tier-one assets,” he said.
26 | January 18, 2021
CORPORATE FINANCE FEATURE
Major Deals - 2020
EQUITY CAPITAL MARKETS (COMPLETED)
Company Transaction Type Amount ($m) Lead managers Lawyer Public Relations
Wesfarmers Block trade of Coles shares 1,067.5 Goldman Sachs, UBS
Wesfarmers Block trade of Coles shares 1,051.0 Macquarie Capital, UBS
Newcrest Mining Placement + share purchase plan 1,000.0 Macquarie Capital (JLM) Citadel-MAGNUS
IGO Placement + entitlement offer 765.7 Citigroup, Macquarie Capital Herbert Smith Freehills Citadel-MAGNUS
Lynas Rare Earths Placement + entitlement offer 425.3 Canaccord Genuity, Merrill Lynch King & Wood Mallesons
Coronado Global Resources Inc Placement + entitlement offer 250.0 Goldman Sachs (JLM)
Pilbara Minerals Placement + entitlement offer 240.0 Macquarie Capital Allen & Overy Read Corporate
Resolute Mining Placement 171.0 Canaccord Genuity DLA Piper
Kape Technologies Placement 161.0 Corrs Chambers Westgarth
Galaxy Resources Placement + entitlement offer 160.7 Canaccord Genuity, UBS Ashurst, Herbert Smith Freehills (for joint lead manager) Cannings Purple
Emeco Holdings Entitlement offer 149.2 Goldman Sachs, Macquarie Capital Hogan Lovells
Geopacific Resources Placement 140.0 Petra Capital, Sprott Private Wealth Corrs Chambers Westgarth
Bellevue Gold Placement + share purchase plan 135.0 Canaccord Genuity, Macquarie Capital HWL Ebsworth Lawyers, Herbert Smith Freehills (for JLMs) Read Corporate
Red 5 Placement 125.0 Petra Capital HopgoodGanim Lawyers, HWL Ebsworth Lawyers (for lead manager) Read Corporate
De Grey Mining Placement 100.1 Argonaut, Canaccord Genuity Fivemark Partners
Chalice Mining Placement 100.0 Bell Potter Securities, Macquarie Capital HWL Ebsworth Lawyers, Herbert Smith Freehills (for JLMs) Read Corporate
Salt Lake Potash Placement + entitlement offer 98.5 Canaccord Genuity, Euroz Hartleys HWL Ebsworth Lawyers, Gilbert + Tobin
Dacian Gold Placement + entitlement offer 98.4 Canaccord Genuity, Macquarie Capital Corrs Chambers Westgarth, Ashurst (for JLMs), Allen & Overy (US counsel)
Panoramic Resources Placement + entitlement offer 90.1 Canaccord Genuity, Morgans Financial Gilbert + Tobin, Ashurst (for Western Areas), HWL Ebsworth (for JLMs) Fivemark Partners
Sezzle Inc Placement + share purchase plan 86.3 Squire Patton Boggs
Gascoyne Resources Placement 85.2 Canaccord Genuity Herbert Smith Freehills
Piedmont Lithium Public offer 81.2 Canaccord Genuity, Evercore Partners Thomson Geer
MMA Offshore Placement + entitlement offer 80.0 Canaccord Genuity (JLM) Ashurst, Clarendon Lawyers (for JLMs), Allens (for lenders) FTI Consulting
AEX Gold AIM listing 77.4 Corrs Chambers Westgarth
MERGERS & ACQUISITIONS (ANNOUNCED)
Bidder Target Value ($m) Bidder Financial Adviser Bidder Lawyer Target Financial Adviser Target Lawyer
Northern Star Resources Saracen Mineral Holdings 5,800.0 Sternship Advisers Ashurst Macquarie Capital DLA Piper
Global Infrastructure Partners Australia Queensland Curtis LNG Common Facilities 3,300.0 Norton Rose Fulbright
SSR Mining Inc Alacer Gold Corp 2,600.0 King & Wood Mallesons
IGO 49% of Tianqi Lithium Energy Australia 1,900.0 Standard Chartered Bank Herbert Smith Freehills Grant Samuel Clayton Utz, Norton Rose Fulbright
Deterra Royalties Iluka Resources 1,800.0 Ashurst Gresham Partners Macquarie Herbert Smith Freehills
Capital
Total Oil Australia 50% of Adani Green Energy's solar portfolio 759.0 Allen & Overy
Dongshan Investment Cardinal Resources 645.4 PwC PwC BMO Capital Markets, Canaccord HopgoodGanim Lawyers
Genuity, Euroz Hartleys
Shandong Gold Cardinal Resources 578.2 Morgan Stanley Wealth Management King & Wood Mallesons BMO Capital Markets, Canaccord HopgoodGanim Lawyers
Genuity, Euroz Hartleys
Nordgold Cardinal Resources 564.8 Bacchus Capital DLA Piper BMO Capital Markets, Canaccord HopgoodGanim Lawyers, Gilbert + Tobin
Genuity, Euroz Hartleys
Engineers & Planners Cardinal Resources 564.8 BMO Capital Markets, Canaccord HopgoodGanim Lawyers
Genuity, Euroz Hartleys
30% stake in the Mantoverde copper mine in
Mitsubishi Corporation 447.0 RBC Capital Markets Allen & Overy
Chile
Infrastructure Capital Group Australian Renewable Energy Trust 400.0 Gresham Advisory Partners Ashurst Azure Capital Herbert Smith Freehills
Invesco 50% of Brookfield's Chevron Tower 400.0 Clayton Utz King & Wood Mallesons
Pilbara Minerals Altura Mining 245.0 Macquarie Capital, Sternship Advisers Allen & Overy, Corrs Chambers Azure Capital Clayton Utz
(for RCF) Westgarth
Automic Group Security Transfer Australia WND Ventnor Capital HWL Ebsworth Lawyers
Midland Brick brand and its manufacturing
BGC Australia WND Clifford Chance, Hotchkin Hanly Squire Patton Boggs
operations
BHP Nickel West Norilsk Nickel' Honeymoon Well project WND HWL Ebsworth Lawyers
Chevron's 16.67% stake in North West Shelf
WND UBS
Venture
Madison Dearborn Partners 55% Ownership Stake in APM Group WND Allens Citibank Gilbert + Tobin
Kelly Services Australia Pty Ltd and Kelly Services
Programmed Skilled Workforce WND Ashurst Baker McKenzie
(New Zealand) Limited
Viburnum Funds Cranecorp Australia Holdings WND Norton Rose Fulbright Azure Capital Lavan
View our comprehensive database of corporate transaction activity WND - would not disclose
Data & Insights businessnews.com.au/bniq/Corporate-Finance
January 18, 2021 | 27Corporate
Data & Insights
Showing 6 of 2,319
Finance
Ringing endorsement for Infinity lithium play in
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full project financing. It says the San Jose hard-rock project has
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