Moelis & Co closes in on Redcape Hotel Group
by Leon Gettler
American investment bank Moelis & Co has the Redcape Hotel Group in its sights.
Following months of negotiations starting out last year. The bankers and the pub group have signed a heads of agreement.
This now opens the way for Moelis to complete a final due diligence.
It is understood the offer price is $620 million, down from the $650 million initially offered.
The prospective deal also comes at a time when Redcape, which owns 23 pubs in NSW, had been considering an ASX listing with hedge funds York Capital and Varde Partners cashing out. JP Morgan and UBS had been working on the float plan.
The idea for the float was pulled off the table because of market volatility.
Redcape expects the acquisition will be wrapped up by end of this quarter. Signing a heads of agreement, or letter of intent allows Moelis to finalise the deal in the first quarter of this year.
The hedge fund backed Redcape Hotel Group has been on the market for some time. Last year, the Queensland Investment Corporation, Woolworths' hospitality arm, ALH Group, and Charter Hall Group were all named as prospective buyers.
23rd February 2016
