Perth’s wholesale fruit and vegetable market has been sold for A$135.5m to an industry-based consortium, which includes Brisbane Markets Limited (BML).
Perth Markets Limited took ownership of the Canning Vale based Market City on 31 March 2016, with BML chief executive Andrew Young appointed to the new PML board.
Industry-based consortium BML bought the Rocklea-based Brisbane markets form the Queensland government in 2002, which BML chairman Tony Joseph said would assist in PML establishing itself as a private enterprise.
“Our industry approach and experience will add value to both the market operation and to BML Shareholders,” Joseph said. “It is anticipated that it will provide BML with potential for increased synergies and with a unique opportunity for our core business, being one of only six central markets in Australia.”
David Timmel has been appointed CEO of PML.
BML sees Brisbane markets takeover unlikely
BML has announced today that it considers the takeover bid for the Rocklea-based wholesale markets to be unlikely due to low interest from BML shareholders.
Sydney private equity firm VGI offered a takeover of A$3.50 per share though its subsidiary PMQ last November, and has since extended its offer until 1 July 2016.
In a statement released 3 April, BML CEO Andrew Young said he saw the extension of the offer as a sign that VGI had not garnered enough interest from shareholders
“Obviously people can change their position, but there clearly is strong ongoing support to retain the current industry ownership structure,” Young said.
“At the start of the hostile takeover over four months ago, VGI/PMQ disclosed that it had an interest in 19.99 per cent of BML shares.
“VGI/PMQ is legally required to disclose when it has achieved acceptances from 25 oer cent of BML shareholders. It has not done so, which we assume means that VGI/PMQ has not achieved acceptances for even an additional 5.01 per cent of BML shares.”
