Published 11 June 2006
Passive Australian investor Record Investments Ltd has been turned into an active investment bank after its merger with its major shareholder & manager, Allco Finance Group Ltd.
Record shareholders agreed to the merger on Friday. It involves Record buying the Allco business for $A756 million in shares and changing Record’s name to Allco Finance Group Ltd.
Post-merger, Record’s former shareholders will own 52% & Allco shareholders 48% of the new company.
Allco has specialised in 6 core asset classes â€“ aviation, shipping, rail, property,small-ticket equipment & financial assets. It intends to expand into other asset classes and is working on a number of reneweable energy projects.
David Coe – chairman & managing director of Allco and chairman of Record until the merger process began, and executive chairman of the new Allco â€“ told the Record shareholders the company also saw opportunities for non-renewable energy outside Australia, but fewer opportunities for infrastructure assets in the highly competitive Australian market.
Mr Coe said the company would continue to generate regular annuity income by creating & managing specialist investment vehicles to support asset finance activities.
Allco listed in Australia in 2001. Its most recent listing was the Pan-Asia commercial reit in Singapore in March.
The Sydney-based group has had some involvement in New Zealand.
In March, Strategic Investment Group Ltd’s shareholders sold half their company to a privately held Allco arm, the Allco Principals Trust. Last year, another listed arm, Allco Equity Partners Ltd, bought 17.1% of Baycorp Advantage Ltd but a bid for control was successfully resisted.
All resolutions except one were carried near-unanimously at Friday’s Record meeting. The exception was the resolution to increase directors’ fees from $A700,000 to $A1.5 million, which Mr Coe said was a cap, allowing the company to hire new directors if new skills were required.
He said the nature & complexity of the business were changing, from a passive investment vehicle to a diversified global financial services business. The vote on the fees was carried with 56% support.
22 March 2006: Strategic’s shareholders sell 50% to Allco
Website: Record Investments
Attribution: Company statements, websites, story written by Bob Dey for this website.