Allco Finance in BIMBO of Allco Equity

Allco Finance Buys Management Control of Allco Equity (Update2)
By Robert Fenner

July 26 (Bloomberg) -- Allco Finance Group Ltd., an Australian manager of energy, aviation and property assets, took control of Allco Equity Partners Ltd. after agreeing to buy out Chief Executive Officer Peter Yates and director Greg Woolley.

Woolley and Yates agreed to sell shares to Allco Finance, lifting its interest in Melbourne-based Allco Equity to 12.5 percent, the companies said in a statement today. Allco Finance also acquired options that may raise its stake to 35 percent, according to the statement.

Allco Finance will also move to 100 percent ownership of the company that manages Allco Equity, from 39 percent, after buying the stakes held by Yates and Woolley. The price paid for the shares and buying out management wasn't disclosed, with the options exercisable at A$5 a share.

Shares in Allco Equity rose 17 cents, or 4 percent, to A$4.39 at the 4:10 p.m. close of trading in Sydney, giving the company a market value of A$438 million ($389 million). Stock of Sydney-based Allco Finance fell 38 cents, or 3.5 percent, to A$10.49.

Marcus Derwin will replace Yates as CEO of Allco Equity.

Allco Finance and Allco Equity were part of a bidding group led by Macquarie Bank Ltd. that failed to take over Qantas Airways Ltd. this year.

Allco Finance is opening an office in Milan as it seeks more investments in Europe. The firm agreed in March to buy $200 million of wind energy assets in Germany and France, and may look to bundle these into a new investment fund. On June 13, it agreed to buy 50 percent of Italy's Industria Petroli Meridionale Srl.