The offer implies an enterprise value for Mainstream of $180 million (including transaction costs and net debt). The purchase will be funded from existing internal cash reserves and undrawn finance facilities.
Vistra has entered into conditional call option agreements to acquire a total of 19.9% of Mainstream shares. The Mainstream Board of Directors and founding majority shareholders, holding approximately 37.9% of the voting rights of Mainstream, have indicated their intention to support the scheme .
Mainstream, listed on the Australian Securities Exchange, is a specialist fund administrator headquartered in Sydney, Australia providing a one-stop-shop to fund managers. Clients include major fund managers, superannuation trustees, listed companies, family offices and dealer groups.
“Mainstream would add significant scale to Vistra’s fund services offering, which is a strategic growth priority for Vistra. If successful, this acquisition would establish Vistra as a market leader in the largest funds management industry in Asia and fourth largest in the world; it also provides a unique opportunity to strengthen Vistra’s capabilities in the US Alternatives market,” said Jonathon Clifton, Regional Managing Director, Asia-Pacific, Vistra.
“Vistra has a good relationship with the Board of Mainstream and we both view Vistra as an excellent strategic and cultural fit for Mainstream and its clients due to Vistra’s existing fund administration capability, our global footprint, and shared value of committing to clients’”, said Jonathon.
Vistra intends to work with Mainstream’s management team, including the Chief Executive Officer and Director, Martin Smith, and Managing Director, Americas, Jay Maher, who would remain with the business, to drive and accelerate further growth.
Mainstream is free to solicit competing proposals until 11:59pm (Sydney time) on 11 April 2021 pursuant to agreed ‘go shop’ arrangements. Vistra has matching rights during this period and an exclusivity agreement thereafter.
Sylvia Evans, Head of Communications
The contents of this article are intended for informational purposes only. The article should not be relied on as legal or other professional advice. Neither Vistra Group Holding S.A. nor any of its group companies, subsidiaries or affiliates accept responsibility for any loss occasioned by actions taken or refrained from as a result of reading or otherwise consuming this article. For details, read our Legal and Regulatory notice at: http://www.vistra.com/notices . Copyright © 2022 by Vistra Group Holdings SA. All Rights Reserved.
Global payroll implementation: What happens after you sign the contract?
18 May 2022
Despite lockdowns, political upheavals, supply chain disruptions and other challenges to the global economy, organisations continue to expand across borders, hire local workers and establish local payrolls…
How CLOs are changing and why they're resilient and buoyant
11 May 2022
Your opportunities in China: discover more about Free Trade Zones
02 Jun 2022
Pillar Two: Are we on the cusp of a global minimum tax?
04 May 2022
Luxembourg and Ireland: Two competing or complementary securitisation markets?
07 Jun 2022
NFTs explained: Why these blockchain-based digital assets are attracting investors
28 Apr 2022