Gadens is pleased to have advised Australian Food Super (AFS) on its successful on-market takeover bid for all of the shares of Dynamic Holdings (DDB). At the end of the offer period, which ended at close of trading on ASX on Monday, 9 September 2024, AFS successfully acquired a 98.979% interest and voting power in DDB.

Gadens advised on all aspects of the transaction including the strategic approach by AFS, preparation and lodgement of takeover documents and advising on the legal requirements of the Australian takeover regime.

DDB is an ASX listed Australian company providing exploration, water drilling and drilling and blasting services to the exploration, mining and construction industries in Australia. AFS’ strategic acquisition of DDB highlights the superfund’s commitment to maintaining a diversified investment portfolio and strong performance for its AFS members.

Commenting on the transaction, Murray Rutherford, CEO & CIO of AFS said: “This was our first transaction working with Gadens and we were impressed by their professionalism and responsiveness.”

So far this year there have only been three on-market takeovers in total, and Gadens has advised the bidder on two of those transactions. Earlier this year Gadens also advised PRM Services LLC on its on-market takeover bid of Sierra Rutile Holdings.

Also commenting on the transaction, lead partner, Michael Kenny said: 

"This transaction was a great example of how on-market takeover bids can be used to exceed the 20% ownership threshold in a efficient and timely manner. We were pleased to have been able to support Australian Food Super in its successful on-market takeover bid. This acquisition in the mining services space is a key step for our client, reinforcing its dedication to a diversified investment strategy and ensuring strong returns for AFS members.”

Value:  Approximately $33.5m (based on AFS’ valuation of the equity of DDB on an undiluted basis under its takeover bid)