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

Stanmore Should Hold Out For A Superior Offer

Quiddity Advisors

Event-Driven

<div>
<p>A brief history before discussing Golden Investments' on-market Offer for <a href="https://www.smartkarma.com/entities/stanmore-coal-ltd" target="_blank" data-smartkarma-citation="entities:15252:1" rel="noopener">Stanmore Coal (SMR AU)</a>.</p>
<table class="table table-striped">
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<td style="width: 101.143px;">
<h2>Date</h2>
</td>
<td style="width: 602.857px;">
<h2>Detail in the Date</h2>
</td>
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<tr>
<td style="width: 101.143px;">19-Nov-18</td>
<td style="width: 602.857px;">Golden Investments (Australia) - a company jointly owned by <a href="https://www.smartkarma.com/entities/20826" target="_blank" data-smartkarma-citation="entities:20826:1" rel="noopener">Golden Energy &amp; Resources (GER SP)</a> ("GEAR") and Ascend Global Investment Fund - made a <a href="https://www.asx.com.au/asxpdf/20181119/pdf/440dlhl6sf47hg.pdf" target="_blank" rel="noopener">takeover bid</a> for SMR at A$0.95/share, a 14.5% premium to last close, in an A$201mn deal.<br><br>GEAR separately entered into a <a href="http://infopub.sgx.com/FileOpen/1.%20GEAR%20-%20Chapter%2010%20Announcement.ashx?App=Announcement&amp;FileID=534463" target="_blank" rel="noopener">share sale agreement</a> with Greatgroup (Sprint) to acquire 50.1mn shares or 19.9% of Stanmore's shares outstanding.  </td>
</tr>
<tr>
<td style="width: 101.143px;">12-Dec-18</td>
<td style="width: 602.857px;">SMR's Board <a href="https://www.asx.com.au/asxpdf/20181212/pdf/4414y8l31jnrrr.pdf" target="_blank" rel="noopener">rejected</a> the Offer with the Independent Expert assigning a fair value range of A$1.48-A$1.90/share. The Offer <a href="https://www.asx.com.au/asxpdf/20190123/pdf/4421jmtg4jdv5c.pdf" target="_blank" rel="noopener">expired</a> on the 23 January 2019.</td>
</tr>
<tr>
<td style="width: 101.143px;">18-Jan-19</td>
<td style="width: 602.857px;">SMR <a href="https://www.asx.com.au/asxpdf/20190118/pdf/441ybg1zlznqvz.pdf" target="_blank" rel="noopener">announced</a> an intention for an on-market buyback up to 10% of shares out (25.3mn shares)</td>
</tr>
<tr>
<td style="width: 101.143px;">26-Jul-19</td>
<td style="width: 602.857px;">SMR received a Section 249D Notice requesting SMR convene an EGM - required to be held within two months of receipt of the Notice - to consider the resolutions to remove directors Stewart Butel and Dan Clifford; and the election of Cameron Vorias an INED and Lim as a NED.</td>
</tr>
<tr>
<td style="width: 101.143px;">29-Jul-19</td>
<td style="width: 602.857px;">SMR sought to appoint Vorias and Lim to the Board, provided the Notice was withdrawn, but it was rejected by Golden and the Notice was made <a href="https://www.asx.com.au/asxpdf/20190729/pdf/446yjdj32f3fbc.pdf" target="_blank" rel="noopener">public</a>
</td>
</tr>
<tr>
<td style="width: 101.143px;">7-Aug-19</td>
<td style="width: 602.857px;">Privately-held Winfield Energy has tabled an indicative non-binding proposal to acquire all shares in SMR at price between A$1.50-A$1.70/share, a 20.5%-36.5% premium to last close. </td>
</tr>
<tr>
<td style="width: 101.143px;">12-Aug-19</td>
<td style="width: 602.857px;">SMR and Winfield <a href="https://www.asx.com.au/asxpdf/20190812/pdf/447dgzf853rh79.pdf" target="_blank" rel="noopener">entered</a> into a Process Deed to facilitate Winfield's due diligence: <br><a href="https://www.asx.com.au/asxpdf/20190812/pdf/447dgzf853rh79.pdf" target="_blank" rel="noopener"></a>
</td>
</tr>
<tr>
<td style="width: 101.143px;">13-Aug-19</td>
<td style="width: 602.857px;">SMR has <a href="https://www.asx.com.au/asxpdf/20190813/pdf/447fhgsqfr395c.pdf" target="_blank" rel="noopener">announced</a> the Notice under Section 249D by Golden has been deemed invalid and therefore it cannot legally be acted upon. </td>
</tr>
<tr>
<td style="width: 101.143px;">23-Sep-19</td>
<td style="width: 602.857px;">SMR and Golden Investments are back to being best buds after Golden <a href="https://www.asx.com.au/asxpdf/20190924/pdf/448smsnr85wjnq.pdf" target="_blank" rel="noopener">withdraws</a> is requisition notice under section 249D of the Corporations Act. Jimmy Lin has now been appointed as a NED and Stanmore will work with Golden as to an INED.</td>
</tr>
<tr>
<td style="width: 101.143px;">9-Oct-19</td>
<td style="width: 602.857px;">The process deed between Winfield Energy and SMR has been <a href="https://www.asx.com.au/asxpdf/20191009/pdf/449b3dn4ggxzjj.pdf" target="_blank" rel="noopener">extended</a> to the 28 October from the 7 October.</td>
</tr>
<tr>
<td style="width: 101.143px;">17-Oct-19</td>
<td style="width: 602.857px;">SMR's process deed with Winfield Energy has been <a href="https://www.asx.com.au/asxpdf/20191017/pdf/449l5s29p6y2ws.pdf" target="_blank" rel="noopener">terminated</a>. </td>
</tr>
<tr>
<td style="width: 101.143px;">18-Oct-19</td>
<td style="width: 602.857px;">MD Dan Clifford <a href="https://www.asx.com.au/asxpdf/20191018/pdf/449m6cvb3fh0x0.pdf" target="_blank" rel="noopener">resigns</a>
</td>
</tr>
<tr>
<td style="width: 101.143px;">29-Nov-19</td>
<td style="width: 602.857px;">Buyback <a href="https://www.asx.com.au/asxpdf/20191129/pdf/44c4rsfs67285j.pdf" target="_blank" rel="noopener">update</a> - the company has purchased 39,365 shares on market as part of the buyback announcement on the 18 Jan 2019.</td>
</tr>
<tr>
<td style="width: 101.143px;">26-Feb-20</td>
<td style="width: 602.857px;">Interim results <a href="https://www.asx.com.au/asxpdf/20200226/pdf/44fgn1l8sxrlkx.pdf" target="_blank" rel="noopener">released</a>
</td>
</tr>
<tr>
<td style="width: 101.143px;">16-Mar-20</td>
<td style="width: 602.857px;">Craig McCabe <a href="https://www.asx.com.au/asxpdf/20200316/pdf/44g2sblkfh2j7l.pdf" target="_blank" rel="noopener">appointed</a> as new CEO</td>
</tr>
</tbody>
</table>
</div>
<div style="text-align: left;" class="content-caption">Source: ASX</div>
<h2>The New News</h2>
<div>Petra Capital, a broker acting on behalf of Golden Investments, SMR's largest shareholder, has <a href="https://www.asx.com.au/asxpdf/20200402/pdf/44gmytb453r3xm.pdf" target="_blank" rel="noopener">announced</a> an on-market takeover Offer for SMR at $1.00/share, a 22% premium to last close. Golden Investments is owned by <a href="https://www.smartkarma.com/entities/united-fiber-system-ltd" target="_blank" data-smartkarma-citation="entities:20826:1" rel="noopener">Golden Energy &amp; Resources (GER SP)</a> and Ascend Global.</div>
<div>
<p>As this is an on-market bid, it is unconditional with payment in cash as consideration.</p>
<p>From today, Petra will purchase SMR shares until the conclusion of the Offer Period - currently with a tentative close of the 18 May. It may be extended.</p>
<p>Petra will purchase <em>up to</em> 50.316mn shares, or 19.65% in SMR, <em>prior to</em> the commencement of the Offer Period. Together with its existing stake of 31.35%, this would give Golden Investment a holding of 51.00% at the commencement of the Offer.</p>
<p>Once the Offer Period commences on the 17 April, Petra will offer to acquire all remaining shares in SMR not currently held by Golden Investments.</p>
<p>SMR have <a href="https://www.asx.com.au/asxpdf/20200402/pdf/44gnbzy816zz35.pdf" target="_blank" rel="noopener">advised</a> shareholders to take no action.</p>
<p>More below the fold on this rare Offer.</p>
</div>


A brief history before discussing Golden Investments' on-market Offer for Stanmore Coal (SMR AU).




Date


Detail in the Date



19-Nov-18
Golden Investments (Australia) - a company jointly owned by Golden Energy &amp; Resources (GER SP) ("GEAR") and Ascend Global Investment Fund - made a takeover bid for SMR at A$0.95/share, a 14.5% premium to last close, in an A$201mn deal.  GEAR separately entered into a share sale agreement with Greatgroup (Sprint) to acquire 50.1mn shares or 19.9% of Stanmore's shares outstanding.  


12-Dec-18
SMR's Board rejected the Offer with the Independent Expert assigning a fair value range of A$1.48-A$1.90/share. The Offer expired on the 23 January 2019.


18-Jan-19
SMR announced an intention for an on-market buyback up to 10% of shares out (25.3mn shares)


26-Jul-19
SMR received a Section 249D Notice requesting SMR convene an EGM - required to be held within two months of receipt of the Notice - to consider the resolutions to remove directors Stewart Butel and Dan Clifford; and the election of Cameron Vorias an INED and Lim as a NED.


29-Jul-19
SMR sought to appoint Vorias and Lim to the Board, provided the Notice was withdrawn, but it was rejected by Golden and the Notice was made public



7-Aug-19
Privately-held Winfield Energy has tabled an indicative non-binding proposal to acquire all shares in SMR at price between A$1.50-A$1.70/share, a 20.5%-36.5% premium to last close. 


12-Aug-19
SMR and Winfield entered into a Process Deed to facilitate Winfield's due diligence:  



13-Aug-19
SMR has announced the Notice under Section 249D by Golden has been deemed invalid and therefore it cannot legally be acted upon. 


23-Sep-19
SMR and Golden Investments are back to being best buds after Golden withdraws is requisition notice under section 249D of the Corporations Act. Jimmy Lin has now been appointed as a NED and Stanmore will work with Golden as to an INED.


9-Oct-19
The process deed between Winfield Energy and SMR has been extended to the 28 October from the 7 October.


17-Oct-19
SMR's process deed with Winfield Energy has been terminated. 


18-Oct-19
MD Dan Clifford resigns



29-Nov-19
Buyback update - the company has purchased 39,365 shares on market as part of the buyback announcement on the 18 Jan 2019.


26-Feb-20
Interim results released



16-Mar-20
Craig McCabe appointed as new CEO




Source: ASX
The New News
Petra Capital, a broker acting on behalf of Golden Investments, SMR's largest shareholder, has announced an on-market takeover Offer for SMR at $1.00/share, a 22% premium to last close. Golden Investments is owned by Golden Energy &amp; Resources (GER SP) and Ascend Global.

As this is an on-market bid, it is unconditional with payment in cash as consideration.
From today, Petra will purchase SMR shares until the conclusion of the Offer Period - currently with a tentative close of the 18 May. It may be extended.
Petra will purchase up to 50.316mn shares, or 19.65% in SMR, prior to the commencement of the Offer Period. Together with its existing stake of 31.35%, this would give Golden Investment a holding of 51.00% at the commencement of the Offer.
Once the Offer Period commences on the 17 April, Petra will offer to acquire all remaining shares in SMR not currently held by Golden Investments.
SMR have advised shareholders to take no action.
More below the fold on this rare Offer.


Stanmore Coal

Stanmore Coal: On-Market Takeover Offer