In today’s briefing:
- MV Global Junior Gold Miners Index Rebalance: 7 Adds & Other Changes Lead to US$610m Trade
- MV Australia Equal Weight Index Rebalance: SIG, TNE Added; US$288m Trade
- Ramelius/Spartan Merger: MergeCo Close to ASX100 Index Inclusion
- Spartan Resources (SPR AU): A Rumoured Merger with Ramelius Resources (RMS AU)
- Weekly Deals Digest (16 Mar) – Rio Tinto, De Grey, HKBN, ESR, Seven & I, Makino, Tenma, JXAM
- SelfWealth (SWF AU): 22nd April Scheme Vote
MV Global Junior Gold Miners Index Rebalance: 7 Adds & Other Changes Lead to US$610m Trade
- There are 7 adds for the VanEck Vectors Junior Gold Miners ETF (GDXJ US) in March. There are plenty of float and capping changes too.
- Estimated one-way turnover is 5.3% resulting in a round-trip trade of US$610m. There are 11 stocks with over 1x ADV to trade from passive trackers.
- Spartan Resources /Australi (SPR AU) and Ora Banda Mining (OBM AU) will be added to some of the S&P/ASX indices at the same time, increasing flow and impact.
MV Australia Equal Weight Index Rebalance: SIG, TNE Added; US$288m Trade
- Sigma Healthcare (SIG AU) and Technology One (TNE AU) will be added to the VanEck Vectors Australian Equal Weight ETF (MVW AU) at the close on 21 March.
- Surprisingly, there are no deletions from the index. The two inclusions, float changes and capping changes result in a one-way turnover of 5.6% leading to a round-trip trade of A$288m.
- There will be huge buying of A$1.2bn in Sigma Healthcare (SIG AU) at the same time from S&P/ASX 200 (AS51 INDEX) and related index trackers.
Ramelius/Spartan Merger: MergeCo Close to ASX100 Index Inclusion
- Ramelius Resources (RMS AU) and Spartan Resources /Australi (SPR AU) have signed a binding Transaction Implementation Deed to enter into a ‘Transformational Combination’.
- For each share of Spartan Resources (SPR AU) held, shareholders will receive A$0.25 in cash and 0.6957 Ramelius Resources (RMS AU) shares, implying a value of A$1.78/share for Spartan Resources.
- The merger is expected to complete late July/ early August, and the merged entity could be added to the S&P/ASX 100 Index in September.
Spartan Resources (SPR AU): A Rumoured Merger with Ramelius Resources (RMS AU)
- The AFR reports that Ramelius Resources (RMS AU) and Spartan Resources /Australi (SPR AU) are in advanced talks about a low-premium merger through a scheme of arrangement.
- A merger will result in synergies due to more significant gold production and lower costs. By adding ore to Mount Magnet, Spartan could fix Ramelius’ near-term production gap.
- My analysis suggests an exchange ratio of around 0.82x (0.82x RMS share per SPR share). This implies an SPR price of A$1.80, a 12.8% premium to the last close.
Weekly Deals Digest (16 Mar) – Rio Tinto, De Grey, HKBN, ESR, Seven & I, Makino, Tenma, JXAM
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments: JX Advanced Metals (5016 JP) to list on 19 March.
- Event-Driven developments: Rio Tinto Ltd (RIO AU), De Grey Mining (DEG AU), HKBN Ltd (1310 HK), ESR Group (1821 HK), Seven & I Holdings (3382 JP), Tenma Corp (7958 JP).
SelfWealth (SWF AU): 22nd April Scheme Vote
- On the 27th Feb 2025, online trading player SelfWealth Ltd (SWF AU entered into Scheme with Singaporean-based wealth manager Svava.
- Svava tabled a A$0.28/share Offer, in cash, by way of a Scheme, trumping Bell Financial (BFG AU)‘s A$0.25/share earlier bid. Svava also has a 18.83% stake.
- The Scheme Booklet is now out, with a Scheme Meeting on the 22nd April. Expected implementation on the 7th May. The IE (Grant Thorton) says fair & reasonable.
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