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

Quiddity Advisors

Event-Driven

<div>
<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> tabled 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>. </p>
<p>The consideration price under the Scheme was A$5.20/share, including a fully-franked $0.10/share dividend. This backed out a 13.6x EV/EBITDA and 24.5x PER.  Plus a 160% gain for shareholders since OPC's listing in August last year.</p>
<div>
<p>OPC shareholders were afforded five alternatives under the Scheme: an all-cash payment; an all-scrip settlement (3.4228 Uniti shares for every OptiComm share), or three different cash/scrip combos. Cash and scrip were capped at A$407mn and 84mn Uniti shares, respectively, implying a 77%/23% cash/scrip split. </p>
</div>
<p>The Offer appeared more than fair, and has largely traded around terms. The Scheme Booklet was registered with ASIC on the <a href="https://www.asx.com.au/asxpdf/20200807/pdf/44l9k22tlryt38.pdf" target="_blank" rel="noopener">7 August</a> and a Scheme Meeting convened for the 10 September. </p>
<p>But on the 28 August, OPC <a href="https://www.asx.com.au/asxpdf/20200828/pdf/44m0z124f38777.pdf" target="_blank" rel="noopener">responded</a> to media speculation regarding a  potential alternative suitor. OPC said it has not received any competing proposal, nor has it been made aware of interest from any other party.</p>
<h3>The New News</h3>
<p>OPC <a href="https://www.asx.com.au/asxpdf/20200908/pdf/44mf8nsdvs4hch.pdf" target="_blank" rel="noopener">announced</a> yesterday it had received a non-binding and conditional competing proposal, by way of a Scheme, from First State Superannuation (FSS). The cash consideration under this competing proposal - which is subject to allowing FSS due diligence - is A$5.85/share, a 12.5% premium to Uniti's Scheme price of A$5.20 under its all-cash consideration alternative (ignoring the potential scale-back).</p>
<p>Not surprisingly, the Scheme Meeting has been <a href="https://www.asx.com.au/asxpdf/20200909/pdf/44mg8hvv827pnk.pdf" target="_blank" rel="noopener">postponed</a>.</p>
<p>As always, more below the fold.</p>
</div>
<div>
<p></p>
</div>


Back on the 15 June, Adelaide-based outfit Uniti Group Ltd (UWL AU) tabled 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. This backed out a 13.6x EV/EBITDA and 24.5x PER.  Plus a 160% gain for shareholders since OPC's listing in August last year.

OPC shareholders were afforded five alternatives under the Scheme: an all-cash payment; an all-scrip settlement (3.4228 Uniti shares for every OptiComm share), or three different cash/scrip combos. Cash and scrip were capped at A$407mn and 84mn Uniti shares, respectively, implying a 77%/23% cash/scrip split. 

The Offer appeared more than fair, and has largely traded around terms. The Scheme Booklet was registered with ASIC on the 7 August and a Scheme Meeting convened for the 10 September. 
But on the 28 August, OPC responded to media speculation regarding a  potential alternative suitor. OPC said it has not received any competing proposal, nor has it been made aware of interest from any other party.
The New News
OPC announced yesterday it had received a non-binding and conditional competing proposal, by way of a Scheme, from First State Superannuation (FSS). The cash consideration under this competing proposal - which is subject to allowing FSS due diligence - is A$5.85/share, a 12.5% premium to Uniti's Scheme price of A$5.20 under its all-cash consideration alternative (ignoring the potential scale-back).
Not surprisingly, the Scheme Meeting has been postponed.
As always, more below the fold.





OptiComm: First State Gatecrashes Uniti's Offer