Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

Mainstream Group Holdings Ltd / Event-Driven

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<p>On 9th March 2021, Australia-based third party fund administration services provider <a href="https://www.smartkarma.com/entities/mainstream-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:30611:1" rel="noopener">Mainstream Group Holdings Ltd (MAI AU)</a> announced they had signed a Scheme Implementation Deed to be acquired by Hong Kong-headquartered Vistra in an all-cash deal that valued the company at a market cap of ~A$170mn. The Offer Price was A$1.20 per share. </p>
<p>I discussed this situation in <a href="https://www.smartkarma.com/insights/mainstream-group-mai-au-go-shop-provision-makes-it-interesting" target="_blank" data-smartkarma-citation="insights:48962" rel="noopener">Mainstream Group (MAI AU): Go-Shop Provision Makes It Interesting</a> argued that the Offer price appeared light on a growth-adjusted basis and that the bump probability was attractive. </p>
<blockquote><p><strong>THE TRADE:</strong> I would get LONG at or below A$1.23 during the go-shop period. Since the fall to the undisturbed price is not very large and since the Offer Price appears light on a fundamental basis, I would be tempted to play 'Bumpitrage' during the go-shop period. (<a href="https://www.smartkarma.com/insights/mainstream-group-mai-au-go-shop-provision-makes-it-interesting" target="_blank" rel="noopener">written 9th Mar 2021</a>)</p></blockquote>
<p>Almost a month later, on 12th April 2021, MAI announced that they had received a superior bid from US-based financial technology company <a href="https://www.smartkarma.com/entities/ss-c-technologies-holdings" target="_blank" data-smartkarma-citation="entities:3464:1" rel="noopener">Ss&amp;C Technologies (SSNC US)</a> at an Offer Price of A$2.00/share which translates to a 66.7% increase from Vistra's original bid of A$1.20. </p>
<div><p><em>More below the fold. </em></p></div>
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<div><div><div class="content-remarks"><p>For more information about M&amp;A rules, regulations, and practices in Australia, please refer to <a href="https://www.smartkarma.com/insights/quiddity-australia-m-a-guide-2019" target="_blank" data-smartkarma-citation="insights:30118" rel="noopener">Quiddity Australia M&amp;A Guide 2019</a> and <a href="https://www.smartkarma.com/insights/quiddity-m-a-australia-foreign-investment-reforms" target="_blank" data-smartkarma-citation="insights:40210" rel="noopener">Quiddity M&amp;A: Australia Foreign Investment Reforms</a> </p></div></div></div>
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On 9th March 2021, Australia-based third party fund administration services provider Mainstream Group Holdings Ltd (MAI AU) announced they had signed a Scheme Implementation Deed to be acquired by Hong Kong-headquartered Vistra in an all-cash deal that valued the company at a market cap of ~A$170mn. The Offer Price was A$1.20 per share. 
I discussed this situation in Mainstream Group (MAI AU): Go-Shop Provision Makes It Interesting argued that the Offer price appeared light on a growth-adjusted basis and that the bump probability was attractive. 
THE TRADE: I would get LONG at or below A$1.23 during the go-shop period. Since the fall to the undisturbed price is not very large and since the Offer Price appears light on a fundamental basis, I would be tempted to play 'Bumpitrage' during the go-shop period. (written 9th Mar 2021)
Almost a month later, on 12th April 2021, MAI announced that they had received a superior bid from US-based financial technology company Ss&amp;C Technologies (SSNC US) at an Offer Price of A$2.00/share which translates to a 66.7% increase from Vistra's original bid of A$1.20. 
More below the fold. 

For more information about M&amp;A rules, regulations, and practices in Australia, please refer to Quiddity Australia M&amp;A Guide 2019 and Quiddity M&amp;A: Australia Foreign Investment Reforms 


Mainstream (MAI AU): Massive Overbid by SS&C, Now Vistra Has to Respond

<p>On 9th March 2021, Australia-based third party fund administration services provider <a href="https://www.smartkarma.com/entities/mainstream-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:30611:1" rel="noopener">Mainstream Group Holdings Ltd (MAI AU)</a> announced they had signed a Scheme Implementation Deed to be acquired by Hong Kong-headquartered Vistra in an all-cash deal that valued the company at a market cap of ~A$170mn. </p><p>The Offer Price is A$1.20 per share in cash. The transaction will be conditional on the receipt of regulatory approvals and Target shareholder approval. The Deal is expected to be completed in June 2021. </p><p>Following the announcement of the Deal, MAI shares closed above terms at A$1.22. </p><div><p><em>More below the fold. </em></p></div><hr><div><div class="content-remarks"><p>For more information about M&amp;A rules, regulations, and practices in Australia, please refer to <a href="https://www.smartkarma.com/insights/quiddity-australia-m-a-guide-2019" target="_blank" data-smartkarma-citation="insights:30118" rel="noopener">Quiddity Australia M&amp;A Guide 2019</a> and <a href="https://www.smartkarma.com/insights/quiddity-m-a-australia-foreign-investment-reforms" target="_blank" data-smartkarma-citation="insights:40210" rel="noopener">Quiddity M&amp;A: Australia Foreign Investment Reforms</a> </p></div></div>

On 9th March 2021, Australia-based third party fund administration services provider Mainstream Group Holdings Ltd (MAI AU) announced they had signed a Scheme Implementation Deed to be acquired by Hong Kong-headquartered Vistra in an all-cash deal that valued the company at a market cap of ~A$170mn. The Offer Price is A$1.20 per share in cash. The transaction will be conditional on the receipt of regulatory approvals and Target shareholder approval. The Deal is expected to be completed in June 2021. Following the announcement of the Deal, MAI shares closed above terms at A$1.22. More below the fold. For more information about M&amp;A rules, regulations, and practices in Australia, please refer to Quiddity Australia M&amp;A Guide 2019 and Quiddity M&amp;A: Australia Foreign Investment Reforms 

Mainstream Group (MAI AU): Go-Shop Provision Makes It Interesting

Australia

Mainstream Group Holdings Limited provides business process outsourcing services. The Company offers investment administration, fund accounting, unit registry, superannuation administration, and share registry services. Mainstream Group Holdings serves financial industry worldwide.

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Mainstream Group Holdings Ltd (MAI AU)

Mainstream (MAI AU): Massive Overbid by SS&C, Now Vistra Has to Respond

Mainstream (MAI AU) got the bump that was needed. We recommended buying a few percent through terms when the deal was A$1.20. That was bumped to...

Janaghan Jeyakumar, CFA

Mainstream Group (MAI AU): Go-Shop Provision Makes It Interesting

Mainstream is a high-growth, innovative fund administration services provider which got a bid from Hong Kong-based Vistra. There is an explicit go...

Janaghan Jeyakumar, CFA

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