Brisbane Markets Limited (BML) shareholders would be aware that when BML committed to investing in Perth Markets Limited (PML) as part of the industry based bid to acquire Perth Wholesale Fruit and Vegetable Markets, a Call Option was granted to PML which allowed PML to require BML to sell 5,000,000 securities. PML exercised its Call Option on 27 September, which required BML to proceed with the sell down of 5,000,000 securities in PML.
As a result of this sale, BML received $5,431,528 on Thursday, 29 September 2016 and has reduced its number of securities held to 21,501,501, which represents an ownership interest in PML of 36.54%. The amount initially paid by BML for the securities that were sold was $5,000,000.
The proceeds of this sale are in addition to the $150,000 (plus GST) payment, received by BML from PML, as the fee to enter into this “underwriting” type of arrangement.
For the 3 months ended 30 June 2016, PML has paid a distribution of approximately 2.72 cents per security. The distribution paid to BML, in respect of BML’s total 45% holding of 26,501,501 securities at that time, resulted in a total distribution to BML of $721,004. The distribution was received by BML on Friday, 30 September.
BML has therefore recorded a return on its investment in PML of $1,302,532 since January 2016.
BML’s investment in PML represents a strategic investment in BML’s core business area of owning, developing and managing Produce Markets.
The impact of these transactions will be reflected in the financial accounts for the half year ended 31 December 2016.
Chief Executive Officer