G+T advised J.P. Morgan as the sole lead manager and underwriter of Cochlear’s $880 million placement and $50 million share purchase plan. Cochlear is a successful ASX-50 company which designs, manufactures and supplies innovative hearing implant devices.
The underwriter, J.P. Morgan, notified fund managers late on Wednesday 25th March, that the offer had been increased from $800m to $880m due to significant demand from both overseas and domestic accounts.
Separately, G+T also advised TDM Growth Partners as major shareholder and sub-underwriter of Somnomed’s $15.5 million capital raising structured as an accelerated, non-renounceable entitlement offer. Somnomed is an Australian company engaged in manufacturing and marketing of innovative medical devices, with a focus on sleep-disordered breathing.
In the context of the current share market volatility and operational and financial uncertainties facing many listed entities, these capital raisings are an initial positive sign that equity capital raisings can be done, albeit at deep discounts. It is expected that more companies will look to raise capital in the coming weeks and months as they deal with the impacts of COVID-19 on their businesses.
G+T has one of Australia’s leading ECM teams, and was able to utilise their considerable experience to assist the underwriters on novel considerations and issues in the face of the current economic uncertainty and share market volatility. Peter Cook and Adam D'Andreti were the partners on the Cochlear transaction, and Adam also lead the team working for TDM on the Somnomed capital raising. The team were assisted by Corporate Advisory lawyers Michael Tong and Cassie Bell.
G+T’s Corporate Advisory team, which boasts some of Australia’s leading M&A and Private Equity lawyers, has advised on many of Australia’s largest and most innovative transactions, including recently advising Quadrant on its acquisition of QMS, TPG Capital on its $1 billion acquisition of ASX-listed pets and vets company, Greencross Limited, Konekt on its acquisition by Advanced Personnel Management, DuluxGroup on its $3.8 billion acquisition by Nippon Paint and KKR on its $2 billion acquisition of MYOB.