Trading Places: Why buy on-market when you can get a share top-up from your dad?
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This week’s recap of substantial holder transactions among ASX small caps covers everything from fund managers investing client cash to shares being handed down from one generation to the next.
Substantial shareholders are shareholders holding 5 per cent or more of a company’s shares and these can be directors, individual investors or institutional investors.
Shareholders are required to announce to the exchange when they cross above or below the 5 per cent threshold and any change in their holdings while they remain above 5 per cent.
One of the more active fund managers this week was Sandon Capital (ASX:SNC), which is in the process of taking over Sir Ron Brierley’s Mercantile Investment (ASX:MVT). Brierley announced in June that he was retiring and with his exit Sandon would merge with Mercantile.
Among Sandon’s buys this week, it bought an 18.9 per cent stake in bauxite explorer Bauxite Resources (ASX:BAU) and a 21.4 per cent stake in mortgage broker Yellow Brick Road (ASX:YBR). Mercantile tried to take over the latter company last year but Mark Bouris firmly rejected the offer.
AustralianSuper topped up its stake in Prospa (ASX:PGL) and it now owns 11.44 per cent. IOOF became a substantial holder on Ooh! Media (ASX:OML) with a 6.03 per cent stake and increased its stake in Victory Offices (ASX:VOL) to 10.14 per cent.
Graphite explorer Syrah Resources (ASX:SYR) was slammed last week after falling prices caused it to make production cuts. But Sirtex Medical founder Bruce Gray, who sold Sirtex last year, put another $11m into the company and he now owns 7.38 per cent.
British fund manager Ruffer bought into Oklo Resources (ASX:OKU), taking a 5.63 per cent stake.
Sachem Partners, which specialises in uranium investments, made a $232,142.86 punt on the stock.
While IOOF bought into Ooh! Media, Yarra Funds Management sold almost all of its stake in the company. The stock fell 35 per cent earlier this month after a hefty earnings downgrade and it has not recovered.
Australian Ethical Investment reduced its stake in GBST Holdings (ASX:GBT) to 11.13 per cent while Burgundy Asset Management cut its to 2.06 per cent.
Avita Medical (ASX:AVH), one of the biggest gainers in 2019 with a jump of 550 per cent, was sold down by American healthcare group Redmile, which cut its stake to 12.42 per cent.
IOOF reduced its stake in Baby Bunting (ASX:BBN) to 8.02 per cent, while Fidelity cut its stake in Berkeley Energia (ASX:BKY) to 4.88 per cent.
Kip McGrath Education (ASX:KME) lodged two substantial holder notices this week.
Recently retired co-founder Kip McGrath dropped his stake from over 35 per cent to less than 31 per cent.
And Storm McGrath, Kip’s son and a director since his dad retired, became a substantial holder with a 6.97 per cent stake.
The package of shares changed hands via an off market transfer and was worth a cool $2.04m.