Daily Brief Australia: Ramelius Resources, Splitit Ltd, Tesserent Ltd, Vection Technologies Ltd and more

• We forecast 26 changes across the ASX50 Index, ASX100 Index, S&P/ASX 200 (AS51 INDEX) and ASX300 Index at the September rebalance.
• The review period ends tomorrow, so most changes are high probability. Though there are some changes that will be up to the discretion of the index committee.
• There will be a lot of stock to trade on the changes to the ASX200 and indices higher up the hierarchy. But there will be a lot of pre-positioning too.

• Splitit Ltd (SPT AU) will seek approval from shareholders to delist the Buy Now, Pay Later micro-play from the ASX and redomicile to the Cayman Islands.
• Concurrent with the voluntary delisting proposal, PE outfit Motive Partners will pump in US$50mn in exchange for preference shares – assuming the delisting occurs and certain earnings targets are met. 
• This is not an Offer for shares. If delisted, Splitit shareholders will hold scrip in an unlisted private vehicle. 

• Tesserent Ltd (TNT AU)‘s IE considers Thales SA (HO FP)’s A$0.13 offer fair and reasonable as it is above its valuation range of A$0.098 to A$0.109 per share. 
• The offer is subject to FIRB and shareholder approval. New Zealand’s OIO approval suggests that Australia’s FIRB approval should be forthcoming. Pearson’s recent selldown lowers the vote risk.
• At the last close price and for the 4 October payment, the gross and annualised spread is 4.0% and 32.0%, respectively.

Vection Technologies reported rapid contract growth in its Q423 update, driven by upsells, new contract wins and progress with its potential A$30m defence tender. The ability to integrate AI software, like ChatGPT, and Apple’s entry into the market underpins the rising commercial value of extended reality software. This is translating into increased demand across a range of verticals, where management is aiming to solidify its market position through M&A, alongside developments to its IntegratedXR product suite. Higher investment could impact FY23 profitability but the group’s plan to build operating leverage should support FY24 margins.