Stock windfall for Greenhill bosses
The bankers on Thursday were named joint vice-chairmen of the New York-based parent company, Greenhill & Co.
Greenhill, which secured its foothold in the Australian market through the acquisition of Caliburn, this week said fourth-quarter profit fell 6.1 per cent to $US15.1 million as returns from investments deteriorated. Profit for the full year was $US42.1 million, down from $US44.6 million in 2011.
New York-based chief executive Scott Bok told analysts that revenue from Australia was "down meaningfully", consistent with a weak domestic merger and acquisition market.
However, he noted this followed "a very strong couple of years" from the Australian business.
Mr Bok also revealed Mr Mordant and Mr Malek are set to receive 659,000 shares in Wall Street-listed Greenhill as part of an earn out agreement. This equates to $US38.8 million based on Greenhill's last closing price. The shares are being paid after the Australian business hit cumulative revenue targets over the first three years.
This rounds off on the upfront share payment the two and the Caliburn chairman Peter Hunt received for the sale.
Among deals Greenhill has been involved in over the past 12 months has been the defence of GrainCorp following its $2.68 billion takeover approach from Archer Daniels Midland. Greenhill was also Alesco's defence adviser during Dulux's $188 million acquisition.
In a joint statement, Mr Mordant and Mr Malek said their new role positions the Australian arm of the advisory firm for "continued global growth".
Frequently Asked Questions about this Article…
Simon Mordant and Ron Malek are set to receive 659,000 Greenhill shares as a delayed final payment tied to the sale of their Caliburn Partnership business; based on Greenhill's last closing price this equates to about US$38.8 million (nearly $40 million).
The share payment is part of an earn‑out agreement from the Caliburn sale — Greenhill paid the shares after the Australian business met cumulative revenue targets over the first three years following the acquisition.
They were named joint vice‑chairmen of Greenhill & Co's New York‑based parent company, a move the pair say positions the Australian arm for 'continued global growth.'
Greenhill reported fourth‑quarter profit fell 6.1% to US$15.1 million, and full‑year profit was US$42.1 million versus US$44.6 million in 2011.
CEO Scott Bok told analysts Australian revenue was 'down meaningfully,' consistent with a weak domestic merger and acquisition market, although he noted this followed 'a very strong couple of years' for the Australian business.
Over the past 12 months Greenhill advised on several high‑profile matters in Australia, including the defence of GrainCorp after a US$2.68 billion takeover approach from Archer Daniels Midland and acting as Alesco's defence adviser during Dulux's US$188 million acquisition.
Yes — in addition to the earn‑out shares for Mordant and Malek, the Caliburn chairman Peter Hunt received an upfront share payment as part of the sale.
For investors, the story highlights that Greenhill is integrating Australian leadership into senior roles and rewarding performance via earn‑outs, while recent results show pressure on revenue from a softer Australian M&A market; investors should weigh the company’s global positioning and recent profit trends when monitoring Greenhill shares.
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