Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

HK Type 4 license through Ballingal Investment Advisors Ltd. 

I'm a highly experienced sell-side analyst with in excess of 22 years of covering Asia Pacific equities, the past 19 years immersed in event strategies encompassing M&A risk arbitrage, directional long/short, stub trades and restructuring.  

My background also includes accountancy (liquidation/bankruptcy/receivership) earlier in my career and as a chief financial officer of a global commodity company based in the US and Mexico.

Pan-Asia Catalysts/Events

OptiComm: First State Gatecrashes Uniti's Offer

Quiddity Advisors

Event-Driven

<p>Back on the 15 June, Adelaide-based outfit <a href="https://www.smartkarma.com/entities/uniti-group-ltd" target="_blank" data-smartkarma-citation="entities:29042:1" rel="noopener">Uniti Group Ltd (UWL AU)</a> proposed a cash/scrip <a href="https://www.asx.com.au/asxpdf/20200615/pdf/44jmw2gm9mk0f4.pdf" target="_blank" rel="noopener">Offer</a> by way of a Scheme for fiber network operator <a href="https://www.smartkarma.com/entities/opticomm-ltd" target="_blank" data-smartkarma-citation="entities:29041:1" rel="noopener">OptiComm Ltd (OPC AU)</a>.  The consideration price under the Scheme was A$5.20/share, including a fully-franked $0.10/share dividend. OPC shareholders were afforded various forms of Scheme consideration options. </p>
<p>On the 8 September OPC <a href="https://www.asx.com.au/asxpdf/20200908/pdf/44mf8nsdvs4hch.pdf" target="_blank" rel="noopener">announced</a> it had received a non-binding and conditional competing proposal, by way of a Scheme, from Aware Super (formerly First State Super), with a cash consideration of A$5.85/share. A week later, Uniti announced a simplified matching offer of $5.85/share, comprising $4.835/share in cash (including a fully-franked $0.10/share dividend), and 0.80537 Uniti shares per OPC share.</p>
<p>On the 12 October, Aware Super made an off-market takeover offer at <a href="https://asx.api.markitdigital.com/asx-research/1.0/file/2924-02292540-3A552328?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">$6.50/share</a>, including a fully-franked $0.10/share dividend. The Offer was subject to a minimum acceptance condition of 50.1%  - flipping from a Scheme previously - and no MACs. Uniti subsequently <a href="https://asx.api.markitdigital.com/asx-research/1.0/file/2924-02292991-3A552424?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">sent a letter</a> to OPC stating OPC was in breach of the SID entered into on the <a href="https://asx.api.markitdigital.com/asx-research/1.0/file/2924-02281004-3A550234?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">15 September</a>, in commencing the marching rights process. OPC refuted those allegations.</p>
<h3>The New News</h3>
<p>Uniti's has now <a href="https://asx.api.markitdigital.com/asx-research/1.0/file/2924-02294151-3A552658?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">tabled</a> a $6.67/share Offer, comprising $5.20/cash (including a fully-franked $0.10/share dividend) and 1.07 new Uniti shares. OPC considers Uniti's revised Offer a superior proposal to Aware's. No mention whatsoever on the alleged SID breach.</p>
<p>Currently trading marginally through terms.</p>
<p>As always, more below the fold.</p>
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<p><em>For a history of the Offers for OPC, please refer to past insights below:</em></p>
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<h3>Insight</h3>
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<td style="width: 124.782px;">16-Jun-20</td>
<td style="width: 578.75px;"><a href="https://skr.ma/hdJdx" target="_blank" rel="noopener">Uniti/OptiComm: High-Fibre Diet</a></td>
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<td style="width: 124.782px;">9-Sep-20</td>
<td style="width: 578.75px;"><a href="https://skr.ma/Pa7jW" target="_blank" rel="noopener">OptiComm: First State Gatecrashes Uniti's Offer</a></td>
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<td style="width: 124.782px;">13-Oct-20</td>
<td style="width: 578.75px;"><a href="https://skr.ma/P1MEa" target="_blank" rel="noopener">OptiComm: Aware Super's Superior Optics</a></td>
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Back on the 15 June, Adelaide-based outfit Uniti Group Ltd (UWL AU) proposed a cash/scrip Offer by way of a Scheme for fiber network operator OptiComm Ltd (OPC AU).  The consideration price under the Scheme was A$5.20/share, including a fully-franked $0.10/share dividend. OPC shareholders were afforded various forms of Scheme consideration options. 
On the 8 September OPC announced it had received a non-binding and conditional competing proposal, by way of a Scheme, from Aware Super (formerly First State Super), with a cash consideration of A$5.85/share. A week later, Uniti announced a simplified matching offer of $5.85/share, comprising $4.835/share in cash (including a fully-franked $0.10/share dividend), and 0.80537 Uniti shares per OPC share.
On the 12 October, Aware Super made an off-market takeover offer at $6.50/share, including a fully-franked $0.10/share dividend. The Offer was subject to a minimum acceptance condition of 50.1%  - flipping from a Scheme previously - and no MACs. Uniti subsequently sent a letter to OPC stating OPC was in breach of the SID entered into on the 15 September, in commencing the marching rights process. OPC refuted those allegations.
The New News
Uniti's has now tabled a $6.67/share Offer, comprising $5.20/cash (including a fully-franked $0.10/share dividend) and 1.07 new Uniti shares. OPC considers Uniti's revised Offer a superior proposal to Aware's. No mention whatsoever on the alleged SID breach.
Currently trading marginally through terms.
As always, more below the fold.


For a history of the Offers for OPC, please refer to past insights below:








Date 


Insight



16-Jun-20
Uniti/OptiComm: High-Fibre Diet


9-Sep-20
OptiComm: First State Gatecrashes Uniti's Offer


13-Oct-20
OptiComm: Aware Super's Superior Optics







OptiComm Ltd

OptiComm: Uniti Sees Aware And Raises