Seven Group and Carlyle review ownership of Coates Hire

Seven Group Holdings and the Carlyle Group are jointly undertaking a strategic review of their ownership of Coates Hire. Seven Group said the review was in response to recent enquiries about the rental business.

The review, being coordinated by Goldman Sachs, is expected to take several months.

Seven Group’s chief executive Peter Gammell, quoted on The Australian website, said; “The objective is to see what is the value of the business and who else might want to come and invest in it.

"Clearly, there is not an IPO market available at the moment but we have had inbound enquiries . . . that have said 'what are you doing with your stake?'"

Carlyle and Seven Group each have an approximate 46% share in the Coates business. Coates is Australia's largest equipment rental business, with 200 branches and revenues of A1.3 billion for the twelve months ending 30 June 2012.