Trading Places: This week’s substantial holder movements – from Swiss banks to Catholic colleges
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In this weekly column, Stockhead overviews all substantial holder filings of ASX small caps. Substantial shareholders are those holding 5 per cent or more and these could be directors, individual investors or institutions.
Companies are required to announce when new substantial holders have come on board, when they have ceased to be shareholders or when they change their holdings.
This week’s list of entrances truly proves substantial holders can be anyone. The most notable was a Catholic university in Indiana which bought 5 million shares in Amaysim’s (ASX: AYS) placement. They already held 10 million but this buy made them a substantial holder with 5.9 per cent.
However there were conventional asset managers on the list including Perpetual, which spent around $2.7m for 5.4 per cent of National Tyre and Wheel (ASX: NTD).
Vinva Investment Management spent over $25m on a 5 per cent stake in Infomedia (ASX: IFM). Infomedia aren’t the only SaaS (software as a service) provider but one of the few that are profitable with $7.9m NPAT.
In some cases, companies need the cash and rare earths producer Northern Minerals (ASX: NTU) received over $3m from investor Liu Xiohua, who now has a 5.2 per cent stake.
Trinidad-based oil explorer Range Resources (ASX: RRS) got $1.8m from Landocean Energy Services in return for a 17 per cent stake. The move was approved by shareholders in the previous week.
AustralianSuper ceased to be a holder in six companies. Five of them Dacian Gold (ASX: DCN), IMF Bentham (ASX: IMF), Jaxsta (ASX: JXT), Stemify (ASX: SF1) and Betmakers Holdings (ASX: TBH).
But this was not because they sold their stakes. Rather, their voting power in Industry Super Holdings (the industry alliance) fell below 20 per cent.
Clearly they still hold these stocks but have fallen below the 5 per cent threshold. Yet they still submitted ceasing to be substantial holder forms without noting their present stakes.
AustralianSuper did sell out of one holding, Apiam Animal Health (ASX: AHX) which netted over $2 million.
Speaking of super companies, Health Employees Super Trust (HEST), sold a 5 per cent stake in Australis Oil and Gas (ASX: ATS) for nearly $12 million.
The takeover of Xenith IP (ASX: XIP) is imminent in spite of a competing bid. But even though the takeover price of $2.01 is 20 cents higher than its most recent price, Adam Smith Asset Management wouldn’t wait, selling their 5.7 per cent stake.
Small cap asset manager QVG sold nearly 2 million shares in Adairs (ASX: ADH). They still hold 4.7 per cent in the company but took $4m out of the sale that pulled them under the threshold.
Lombard Odier are probably one of the lesser known Swiss private banks in Australia. But they held 8.73 per cent of Salt Lake Potash (ASX: SO4) and now they hold 11.6%. This would have cost over $3 million.
As Factor Therapeutics (ASX: FTT) edge closer to determining their future, Pura Vida & their allies bought more of the company, taking them to 19.4 per cent. While under law they cannot cross 20 per cent without launching a formal takeover offer, their intentions are becoming clear.
Regal Funds increased their holdings in outdoor advertiser QMS (ASX: QMS). Yet the only news out of the company was a new general sales manager. They also topped up their 11.2 per cent stake in Apiam Animal Health (ASX: AHX) to 13.3 per cent.
AustralianSuper bought more of Mod Resources (ASX: MOD), taking them to 11.8 per cent. Perpetual now hold 10.7 per cent of Korvest (ASX: KOV).
UBS bought another 1 per cent of Posedion Nickel (ASX: POS), a West Australian nickel explorer who are at ‘crunch time’. Their most recent quarterly reported they have confirmed mineralisation and identified the plunge direction.
A few weeks ago we reported Comm Bank reduced their stake in Mortgage Choice (ASX: MOC). Well, they’ve done it again reducing what was an 18.5 per cent stake to 17.5 per cent.
They are still a significant holder but it seems they wanted to share the spoils from the stocks’ recovery.
Perpetual sold $40 million of small caps stakes this week, while remaining substantial holders including Estia Health (ASX: EHE), Select Harvests (ASX: SHV) and Nick Scali (ASX: NCK).
Australian Super nearly halved their stake in Xref (ASX: XF1), and this would have cost over $4 million.
Despite participating in DGO Gold’s rights offer (ASX: DGO), the holdings of 4 company directors decreased from 46 per cent to 40 per cent between them.
A similar fate befell Nexus Minerals (ASX: NXM) Greame Kirke who despite purchasing shares in a rights issue, saw its stake fall from 12.4 per cent to 9.5 per cent.
Lazard reduced its stake in Ovanto (ASX: OVT) from 6.46 per cent to 5.31 per cent. While $12,500 of this was presumably bought by the Hannan family, they won’t be buying more anytime soon.
Small cap asset manager Paradice Investment Management reduced its 9 per cent stake in construction engineering firm Decmil (ASX: DCG) to 6.45 per cent which would have reaped over $5 million in proceeds.