Fledgling property investment company MacarthurCook Investment Managers has struck a deal with a listed Internet provider to achieve a backdoor listing.
Mildura-based Local Telecom and Internet is to buy all the shares in MacarthurCook and become a property investment manager. The new listed company will then be known as MacarthurCook.
Craig Dunstan, former head of funds management atAustralian Unity, will become managing director of the new entity, with formerMerrill Lynchchief operating officer Christopher Nunn becoming head of operations.
FormerBNP Paribasdeputy general manager Richard Haddock will also join the board as chairman of the new company. Existing Local Telecom director Hugh Gurner, who has more than 20 years experience in the financial services industry, will remain on the board.
MacarthurCook tried to join a listed property company, Lion Equities, last year, but was knocked back at a meeting of shareholders.
This time around Local Telecom directors have welcomed the move. The sales should give the company $3.5 million in cash, which Dunstan says will be used to develop and market new property products and undertake acquisitions.
“The aim is to grow the business through both the launch of new property and mortgage funds and the acquisition of the right to manage funds which may no longer be core products of other managers,” he says.
According to the information memorandum, the new company will focus on mortgage and property investment funds, while also offering its services to other property companies. This will include equity underwriting, structuring finance, property analysis and development.
Local Telecom has 1,000 investors, many with unmarketable parcels. As part of the new deal, the company is issuing a further 12.5 million shares at 45 cents each to raise further capital and expand the share base.
Both Dunstan and Nunn are being issued shares and options in the new company.
A Local Telecom shareholders’ meeting is to be held in Melbourne on March 3 to approve the takeover of MacarthurCook.
