In today’s briefing:
- APM Human Services (APM AU): CVC’s 141% Offer Premium
- Goodman Group (GMG AU): Positioned for Outperformance
- APM (APM AU): CVC’s Revised Non-Binding Proposal at A$2.00
- QANTM (QIP AU): Rouse Makes An Offer – But At What Price?
- On the cusp of potential expansion
- Tapping into historic NSW tin for new resources
APM Human Services (APM AU): CVC’s 141% Offer Premium
- Back on the 19th Feb, employment and disability services play APM Human Services Internation (APM AU) rejected PE-outfit CVC Asia Pacific’s A$1.60 proposal, a 93% premium to undisturbed.
- Undeterred, CVC has returned with A$2.00/share indicative Offer, by way of a Scheme, a 141% premium to undisturbed; yet a 44% discount to APM’s November 2021 IPO price of A$3.55/share.
- APM has determined it will engage and provide CVC with a four-week period of exclusivity.
Goodman Group (GMG AU): Positioned for Outperformance
- Goodman Group (GMG AU) has been moving higher recently and the stock has outperformed its peers handily over the last year.
- The stock trades marginally expensive compared to its peers and that could be partially attributed to the stock being a part of large indices.
- There is another index inclusion to come and that could lead to further outperformance in the short term.
APM (APM AU): CVC’s Revised Non-Binding Proposal at A$2.00
- APM Human Services Internation (APM AU)’s revised non-binding proposal from CVC is A$2.00 per share, a 141.0% premium to the undisturbed price of A$0.83 per share (16 February).
- CVC has been granted a four-week exclusivity period to 27 March. The proposal allows shareholders to receive scrip in an unlisted HoldCo. The Board will recommend a binding proposal.
- While not a knockout offer, a concentrated and seemingly supportive shareholder register facilitates a binding proposal. At the last close, the gross spread was 25.0%.
QANTM (QIP AU): Rouse Makes An Offer – But At What Price?
- Yesterday morning, Qantm Intellectual Property (QIP AU) announced it had received a non-binding indicative proposal from UK-based Rouse International Holdings Limited.
- In what only can be described as a (s)crappy announcement, no price was disclosed, nor the due diligence period. Not even if this was a cash/scrip Offer.
- In any event, QANTM considers Rouse’s ops to be highly complementary in both geographic and service lines to QANTM. QANTM shares gained 17% yesterday to close at A$1.34.
On the cusp of potential expansion
- Alkane Resources Limited (ASX:ALK) is an ASX-listed gold producer and explorer with a focus on central west New South Wales.
- The Perth-headquartered company owns and operates the Tomingley gold mine and processing facilities, south-west of Dubbo and the Northern Molong porphyry project in central west NSW which includes the highly prospective Boda and Kaiser deposits.
- ALK recently announced high-grade results from the Kaiser resource upgrade drilling programme and upgraded the Boda resource to 6.6mn ounces of gold equivalent (AuEq), with 4.4Moz AuEq inferred.
Tapping into historic NSW tin for new resources
- Sky Metals Limited (ASX:SKY) is an ASX-listed base metals explorer focused on a portfolio of assets in New South Wales with the most advanced being the Tallebung tin project in central NSW. The company recently made material progress on the expansion of the mineral resource estimate (MRE) at Tallebung which positions it to be scoped for a bulk-mining operation.
- SKY says it is now planning a further drilling programme on a defined exploration target of approximately 23Mt-32Mt at a grade of between 0.14%-0.17% tin to build out the indicated resource for the mine scoping studies.
- The cash balance of $1.12m at the end of December 2023 suggests to us that the company may need to raise capital to complete its programme.
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