Coates shareholders back $1.5 billion National Hire bid

SYDNEY (Reuters) - Shareholders in Australian equipment hire firm Coates Hire Ltd COA.AX voted on Monday to approve a A$1.7 billion ($1.5 billion) private equity-backed offer from rival National Hire Group Ltd (NHR.AX).

Almost 95 percent of shares voted were in favor of the proposal, a Coates spokeswoman said, well above the 75 percent threshold.

Coates' board in October gave its backing to the bid from National Hire and private equity firm Carlyle Group CYL.UL, the third attempt by the two to buy Coates. The offer was at A$6.59 per share, rising to A$6.70 including Coates' final dividend.

Coates, which hires out everything from portable toilets to generators to the building, mining and energy sectors, put itself up for sale in June after posting weaker-than-expected interim results in February.

National Hire and Carlyle have formed a new company, Ned Group Holdings Pty Ltd, to buy Coates and National Hire's rental services business. Both will hold a 50 percent voting interest in Ned Group, which will be led by Coates' Managing Director Malcolm Jackman.

The acquisition is to be funded by a combination of new debt financing and equity contributions.

Earlier this month, Coates lifted its earnings growth forecast for the current fiscal year to 20 percent from 15 percent, reporting an encouraging recovery from soft trading conditions in the previous year.

National Hire shares were down 1.9 percent at A$2.55, in line with the fall in the broader market, while Coates Hire was up 0.5 percent at A$6.55.

($1=A$1.16)

(Reporting by James Thornhill)