Ardent Leisure's extraordinary meeting, which was slated for Monday September 4 and expected to be fiery, has been called off. 

Street Talk understands Ardent chairman George Venardos informed the ASX late on Sunday.

The move was prompted by Venardos asking Ariadne director Gary Weiss and US-based Brad Richmond onto the board over the weekend. 

It is thought two existing non-executive directors will step down from the Ardent board by the embattled company's annual general meeting. 

Rebel shareholder Ariadne Australia has been campaigning for Weiss and Richmond to join the board to push for more value to be created for Ardent shareholders. 

Proxy firms ISS and Ownership Matters recommended against the election of the pair, but Ardent has still opted to skip the formalities of the EGM which may say something about the expected outcome. 

In their reports to shareholders, both groups had opposed the appointment saying that Ariadne had failed to convince the wider pool of shareholders that it offered a distinct plan for Ardent, which is battling to recover from last year's fatal accident at its Dreamworld theme park.

Ariadne a 10.9 per cent shareholder withdrew three resolutions it earlier wanted to put to shareholders at an EGM. The activist group continued its push for the election of Weiss and Richmond to the board of the leisure company.

 

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Citi has sold a $50 million block of shares in Costa Group, Street Talk understands.

The shares were offered at $5.25 apiece and sold on behalf of US-based private equity firm Paine & Partners.

The block represents about 3 per cent of Australia's largest grower and distributor of fruit and vegetables.

Costa was named after Rich 200 member Frank Costa, a former Geelong Football Club president who is estimated to be worth $352 million.

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Bankers are hoping for a sprint to the finish in the final four months of 2017. 

But as it stands Macquarie Capital is leading the pack across a trifecta of league tables including announced and completed mergers and acquisitions and equity capital markets activity. 

In ECM, Macquarie is followed by UBS and Goldman Sachs respectively, while in announced M&A UBS and Deutsche Bank round out the top three.

Macquarie - which has the largest investment banking team in this market - showed its mettle again on Wednesday night when it executed a $373 million block trade in Reliance Worldwide on behalf of chairman Jonathan Munz.

As first reported by this column, Munz will retain a 10 per cent stake worth $200 million at the last traded price, and "is entering into a voluntary escrow for 180 days in respect of this holding," according to a term sheet send to fund managers.

The block trade was launched in a quiet market for ECM bankers who are fretting over this year's small fee pot. 

A dearth of large transactions has seen ECM volumes as at August 31 slump to $US8.1 billion, the lowest year-to-date total in 15 years, according to Dealogic.  

Floats for companies including Officeworks and Craveable Brands were shelved this year, while the likes of tap business Zip Industries and Retail Apparel Group opted for a trade sale. 

A pipeline of listed investment companies - which tend to come towards the end of an ECM cycle - are out marketing to investors. Other large transactions which could go either way include Lattice Energy and Quadrant Energy.

Melbourne-based investment and superannuation advice company Netwealth Group is among a small group of ASX aspirants that have pencilled in an October investor roadshow.

Thankfully for banks, fees are more plentiful in M&A.

Announced deals amount to almost $US55 billion this year, up on US$53.3 billion at the same time in 2016. 

The M&A market has also had its fair share of hiccups in 2017 with multiple private equity bids for Vocus Group and Fairfax Media, publisher of The Australian Financial Review, being withdrawn after parties conducted detailed due diligence.

The largest transactions this year include the NSW government's $7.6 billion privatisation of a stake in Endeavour Energy and the sale of Alinta Energy.

 

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There"s certainly no shortage of investors looking to clean up from cleaning up

Just days after Downer's $1.2 billion offer for Spotless came to an end - with Downer lifting its stake to just below the compulsory acquisition threshold - Phil Cave and Callen O'Brien's Anchorage Capital Partners has signed a deal to acquire TJS Services.

Founded by Todd Jaques more than 20 years ago, TJS Services claims to be one of the fastest growing facility maintenance providers in Australia. It handles cleaning, maintenance, construction and facility management services at more than 2,250 sites in Australia, New Zealand and the US in sectors such as commercial, retail, education, hospitality and entertainment – sort of like a mini version of Spotless. 

Some of its biggest customers include Good Life Gyms, Fitness First, Spotlight and Anaconda Group, and Goodstart Early Learning Centres.

Anchorage is better known for its investments in retailing, but it's not the first time the mid-market private equity firm has delved into the services sector.

The firm, which specialises in turnarounds and takes a hands-on approach to investments, owns scaffolding and formwork business Acrow as well as a bunch of consumer assets including Shoes & Sox, childcare owner Affinity Education Group and Australian brands owner Brand Collective.

Anchorage's acquisition of TJS suggests it sees some upside by restructuring the business or helping it reach its full potential. It may also see scope for further industry consolidation.

However, TJS faces increased competition from Spotless under its new owner. Spotless and Downer have formed a joint bidding group to target contracts that would have been hard to win independently, such as providing catering and maintenance services to mining camps.

Westpac financed the TJS deal for Anchorage while Minter Ellison provided legal counsel. KPMG Corporate Finance and JWS advised TJS.

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Management meetings are set to begin late next week for potential suitors of the nation's biggest milk processor Murray Goulburn. 

Street Talk understands the meetings will begin in the latter half of the week, ahead of a bid date slated for September 15. 

Murray Goulburn has Deutsche Bank in its corner after the company said it had received a number of "confidential and unsolicited indicative proposals from third parties." 

Interestingly, sources suggested Murray Goulburn had opted not to open a formal data room which leaves prospective acquirers relying largely on ASX materials.

The processor's camp is said to have a preference for whole of company offers over piecemeal bids. 

Murray Goulburn was plunged into crisis last year when it retrospectively cut prices to its farmer suppliers after a strategy under former chief executive Gary Helou to pay above market prices using profits from more profitable product sales in China backfired.

The company is struggling to recover after farmers left for rival processors, culled herds or quit their farms.

 

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