Just when we thought the Quintis/TFS Corp saga couldn't get much messier, insert private equity giant and fellow Indian sandalwood grower KKR & Co.
Street Talk understands Quintis' biggest shareholder and now former CEO Frank Wilson has been in talks with KKR on and off over the past 12 months about merging the pair's plantations.
Quintis owns and manages Indian sandalwood plantations up near Kununurra in Western Australia and, as luck would have it, so too does KKR via its controlling stake in Santonol Group.
The two owners face a similar bunch of challenges in what is a capital-intensive operation and it is understood they have considering what amount of synergies there would be in combining their growing, harvesting and marketing operations.
Wilson and KKR are said to have built up quite a rapport in the past year.
And with UBS and Herbert Smith Freehills-advised Quintis now in a spin - thanks to US short-seller Glaucus Research publicising what had been a long-held position by a bunch of the local hedge fund set - Wilson's keen to explore all manner corporate and strategic tie-ups.
He tendered his resignation as CEO on Tuesday morning in an effort to work up a deal with his 15 per cent stake in the company. He said he had been approached by a "well funded, credible party" recently, with a view to buy Quintis.
And his mates at KKR are understood to remain interested in the background.
A KKR spokesman declined to comment.
Wilson's BidCo has retained Clayton Utz for advice.
Elsewhere, and as first reported by Street Talk on Tuesday, Platinum Equity is poised to wrap up the second leg of a consolidation play in Australia's $10 billion a year office supplies market.
It is understood the cashed-up global private equity firm has gained exclusivity status in the auction for Office Depot's Australian and New Zealand business, OfficeMax.
As this column also first reported, Platinum agreed to acquire Staples' Australian and New Zealand business - the second largest player in local office supplies on March 14.
OfficeMax, the country's No.3 player, has been up for sale through adviser Goldman Sachs with Platinum understood to have seen off private equity firm Adamantem Capital during the process.
Platinum will need to secure the approval of both Australian and Kiwi competition regulators. This won't be easy, with the Australian government - perhaps the biggest user of stationery in the country, understood to be one of the customers least impressed with the potential loss of competition in the market.
However, Office Depot is prepared to run the gauntlet of angry customers and skeptical regulators to get the deal done.
