Baycorp Bidder May Sell Debt Collection Operation

By Robert Clow, The Australian

ALLCO Equity Partners may offload takeover target Baycorp Advantage’s debt collection operation, sparking consolidation of the fragmented and volatile industry.

D&B Australasia (77.5 per cent owned by AMP Capital Investors) and Portfolio Management Group (20 per cent owned by Allco and 40 per cent owned by DB Capital Partners) have been mooted as partners in a potential tie-up for the debt collection operation orchestrated by AEP, a David Coe-backed finance house.

Baycorp’s shares rallied 58c to $3.80, overshooting the $3.50 a share takeover bid from AEP on speculation that other bidders could emerge for Baycorp, Australia’s biggest credit reference and debt collection group.

The Caliburn Partnership, which is managing the defence for Baycorp, had been conducting a strategic review of the underperforming company when the bid emerged.

A source close to the deal last night suggested that AEP might have picked up on the fact that the boutique was just starting to sound out the market on a potential sale.

Baycorp was last night preparing a letter for shareholders recommending that they take no action pending a formal offer, noting that the bid was highly conditional and that shareholders would require further explanation of the impact of the proportional bid.

For this complete story, please visit Shake-up for debt set.