Valad Property Group’s European chief executive and managing director are spearheading a proposed management buyout of the Australian company’s European business, writes David Sands of Estates Gazette sister title Europroperty.
Valad’s European chief executive Martyn McCarthy, European managing director Peter Hurley, and other senior management have made an “indicative and incomplete” proposal to buy the company.
Because of his involvement in the bid, Hurley is taking a leave of absence as managing director. Valad may appoint an acting chief executive.
Lloyds Banking Group could finance a buyout, although it is understood not to have undertaken any due diligence.
Valad said that were such a deal to take place, the proceeds would be used to reduce bank debt in DUKE, the 50/50 joint venture with Lloyds.
In 2009, the firm restructured its European business and created the £1.1bn (€1.28n) European property joint venture with the bank.
Valad said: “The board of Valad continues to review various corporate initiatives that are aimed at maximising value for the group and its securityholders.
“The independent directors of Valad will manage the process of assessing the MBO proposal as well as any other proposals.”
david.sands@estatesgazette.com
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