Carlyle offers $350m for Contract Aviation
From: The Australian June 01, 2010 12:00AM
US-based private equity firm Carlyle Group has signed a deal to buy Contract Aviation that values the company at up to $350 million.
Contract Aviation was expected to lodge an initial public offering prospectus in late March or early April, but pulled that plan after entering into talks with the Carlyle Group.
The creation of Contract Aviation Industries involves the merging of two companies, Alliance Airlines and Airwork Helicopters, both of which have independent investor Hugh Jones as a major shareholder.
The companies provide helicopter and aviation services to the government, military and resources sectors.
This deal comes as activity in the Australian private equity sector has been hotting up. Several US-based private equity players havebid for hospital operator Healthscope and South African private equity Aspen Pharmacare has been allowed to conduct due diligence for its bid for Sigma Pharmaceuticals.
International private equity investors are awaiting a critical decision from the Australian Tax Office about how private equity investments will be taxed here after the ATO issued a draft ruling saying private equity exits should be subject to income tax, rather than being treated as capital gains, which are not taxed for foreign investors if they come from countries that have tax treaties with Australia.
The ATO last week delayed its final ruling.
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Carlyle offers $350m for Contract Aviation | The Australian