Sinclair Knight Merz Management Pty Limited, in the matter of Sinclair Knight Merz Management Pty Limited (No 2) [2013] FCA 1366

EX TEMPORE REASONS FOR JUDGMENT 1 This is an application by the plaintiffs for orders under s 411(4)(b) of the Corporations Act 2001 (Cth) (Corporations Act) approving two inter-conditional schemes of arrangement. The first is between Sinclair Knight Merz Holdings Limited (SKM Holdings) and the holders of its ordinary shares (Equity Shares). The second is between Sinclair Knight Merz Management Pty Limited (SKM Management) and its redeemable voting preference shareholders (Voting Shares). The plaintiffs also seek an order under s 411(12). 2 Terms used in these reasons bear the same meaning as in my reasons for making orders on 5 November 2013: see Sinclair Knight Merz Management Pty Limited, in the matter of Sinclair Knight Merz Management Pty Limited [2013] FCA 1211. 3 I will make the orders sought by SKM Management and SKM Holdings. 4 My reasons for making the orders are generally as set out in the submissions of Mr R Dick SC with Mr D Barnett dated 9 December 2013, which together with a schedule showing compliance with formal requirements, is marked MFI-4. I have marked as MFI-5 the index to the Court Book for both hearings, which sets out the affidavits read and exhibits tendered at the hearings. 5 In particular, I am satisfied that: The procedural requirements of s 411 have been satisfied. I note the matters addressed at the first court hearing set out in my reasons for granting the orders on 5 November 2013 and the written submissions provided to me by Senior Counsel for SKM Group for the first court hearing which (together with the schedule showing compliance with formal requirements) I marked as MFI-1. The requisite statutory majorities under s 411(4)(a)(ii) have been achieved. The SKM Management Scheme was approved by approximately 99.08% of the number of votes cast on the resolution to approve the SKM Management Scheme and 94.93% of shareholders attending and voting on the resolution. Turn out in person or by proxy was 98.71% of Voting Shareholders. The SKM Holdings Scheme was approved by approximately 99.11% of the number of votes cast on the resolution to approve the SKM Holdings Scheme and 94.93% of shareholders attending and voting on the resolution. Turn out in person or by proxy was 99.36% of Equity Shareholders. An Extraordinary General Meeting of the Voting Shareholders was held immediately before the Scheme Meetings. A resolution was passed to amend the SKM Share Plan to permit Jacobs Australia to acquire the Voting Shares and to terminate the Plan thereafter. The resolution was passed by a majority of 99.09% of all votes cast. 6 For the reasons outlined in Senior Counsel's submissions marked MFI-4 I am satisfied of: The manner of production and dispatch of the Scheme Booklets; The fact that Mr Peter Scott acted as Chairman of the Scheme Meetings and the conduct of the polls for the Scheme Meetings and the Extraordinary General Meeting of SKM Management held on 6 December 2013; The date and place of the second court hearing was published in the Australian newspaper on 29 November 2013; That no notice of intention of any person to appear at the hearing has been received. The matter was called and no person appeared to object to the Schemes being approved; The conditions precedent to the Schemes (other than the Court approval of the Schemes and lodgement of orders with ASIC) have been satisfied or waived; ASIC has issued a "no objection" letter in relation to the Schemes under s 411(17)(b), and it is Exhibit 5 in these proceedings; No fact or circumstance has been drawn to my attention which would indicate that Court approval to the Schemes should be denied. 7 Accordingly, I will make the orders sought by the plaintiffs approving the Schemes. I certify that the preceding seven (7) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Farrell.