Hong Kong fund administrator Vistra Group is confident it will secure Aussie firm Mainstream Group, as the Foreign Investment Review Board has flagged no objections to the potential deal.
Vistra entered into a scheme implementation deed with Mainstream on 9 March, which outlined the sale of 100 per cent of the shares in the Australian company at $1.20 per share, or $180.1 million.
Jonathon Clifton, regional managing director, Asia Pacific at Vistra commented the Foreign Investment Review Board (FIRB) approval is an “important condition” of the pair’s dealings.
“We are already regulating in all the key jurisdictions where Mainstream operates and are well progressed with seeking the necessary approvals,” Mr Clifton said.
“Vistra and Mainstream are a good strategic and geographic fit. The acquisition would help us grow our alternative investment business and add significant scale to our fund services offering.”
The scheme implementation deed has also given Mainstream room to shop around for any competing proposals for a month.
But Vistra is also confident that its $180.1 million offer will compare favourably, Mr Clifton said, commenting it represents an EBITDA (earnings before interest, depreciation and amortisation) multiple of 17.4 times Mainstream’s projecting earnings for 2021.
It has previously indicated plans to drive further growth for Mainstream. The Australian data administrator’s chief executive and director Martin Smith intends to remain with the business.
The transaction is expected to be implemented in mid-June.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].