Buddle Findlay Advises On Fiji's Public Takeover

Buddle Findlay Advises On Fiji's First Public Takeover

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Buddle Findlay acted as legal adviser to the board of RB Patel Group Limited (RBG) and it three largest shareholders on the partial takeover by Fijian Holdings Limited (FHL) of RBG. The transaction is ground breaking for Fiji, being the first ever takeover of a public company listed on the South Pacific Stock Exchange.

RBG owns and operates the RB Patel supermarkets in Fiji. FHL is a local Fijian investment company which has investments in tourism, manufacturing, building and construction, real estate, media, as well as the New World supermarkets in Fiji. Both RBG and FHL are listed on the South Pacific Stock Exchange in Fiji. The transaction values the RBG share capital at FJ$42 million and gives a multiple of 7x based on RBG’s 31 March 2007 EBITDA.

FHL, through its subsidiary, FHL Retailing Limited, made a partial cash offer for 50.2% of the shares of RBG for FJ$1.40 per share. Under the terms of the deal, the three largest shareholders based in Hong Kong agreed to sell their 50% holding to FHL and granted FHL an option to purchase the management contract under which they manage and run the business of RBG.

The transaction team of Buddle Findlay was led by corporate partner Grant Dunn and was supported by senior associate Sharon McGrath.

Grant Dunn commented - “Buddle Findlay was happy to give the benefit of our takeovers experience and advise the various parties on international market practice and compliance with Fiji’s Takeover Regulations which are predominantly based on the Takeover Codes in NZ and the UK.”

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