Embattled truckers move to float above fire
Financial reports say the company that owns Cootes Transport will go ahead with its stock market float, despite its subsidiary’s troubles and safety review.
The Mark Rowsthorn-chaired McAleese Transport company is looking to raise $166 million from the pockets of investors, despite the ongoing fallout from a fatal fuel-tanker crash in recent weeks. The crash has prompted a large-scale review of the Cootes fleet, so far pulling 89 vehicles off the road over safety concerns.
Mr Roswthorn has been seen putting together an elite logistics executive team, poaching a number of board members from companies such as ports and rail firm Asciano – where he was himself CEO until 2011.
Insiders say McAleese’s brokers have pitched the sale of 113.1 million new shares to investors at $1.47 each. The offer is 11 per cent lower than the $1.65 per share price recommended before the tragic crash.
The incident that left two people dead on a New South Wales highway will weigh into the offering, when the company beings trading on the ASX in early December. Still, McAleese will hit the market backed by a capitalisation of $421 million.
The existing owners, including Mr Rowsthorn, will retain more than half of the company.
McAleese's complete prospectus is expected be released this week, following the end of the institutional fund gathering.