Nothing lights up the capital markets like an aftermarket raid!
Listed micro cap Avada Group, which offers integrated traffic management services in Queensland and NSW, found itself in the middle of one on Tuesday evening as Regal Funds Management, owner of a 15.4 per cent stake in the company, pressed sell.Sydney buyout fund Pacific Equity Partners, which owns the country’s largest full-services traffic management business Altus Traffic Management alongside the founder David Lundberg, was the party on the other side of the trade, Street Talk can reveal.
PEP bought Altus Traffic for about $200 million in 2022 out of its $2 billion-plus Fund VI. Avada, with its $42 million market capitalisation, is tiny by PEP standards. But it could still be a nice little bolt-on acquisition down the line.But we wouldn’t expect a takeover bid to hit tonight or tomorrow morning, with sources telling Street Talk that PEP’s Altus intends to sit on the stake as a strategic investor.