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.

 

Buyers

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.

Although he was departing, Brierley promised nothing would change and the company would still be a busy activist investor.

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.

Finally, miner Hylea Metals (ASX:HCO), which rose over 400 per cent in one day when it announced it was buying a uranium mine, caught the eye of an American hedge fund.

Sachem Partners, which specialises in uranium investments, made a $232,142.86 punt on the stock.

Company Code Market Cap Holder Stake Status
Prospa PGL $774.5M AustralianSuper 11.44% Increasing
Kyckr KYK $19.3M Regal Funds Management 5.30% Becoming
GetSwift GSW $89.6M Charles Frischer 6.72% Increasing
Venture Minerals VMS $14.5M Delphi 7.30% Increasing
Babylon Pump and Power BPP $10.2M Chesapeake Capital 5.00% Becoming
Hills HIL $61.5M Alisa Rosemary Hill-Ling 11.00% Increasing
Superior Lake Resources SUP $19.5M Ilwella 8.09% Increasing
Victory Offices VOL $98.2M IOOF 10.14% Increasing
Ooh! Media OML $766.8M IOOF 6.03% Becoming
Babylon Pump and Power BPP $10.2M G & N Lord Superannuation 9.96% Increasing
Todd River Resources TRT $5.7M Delphi 6.98% Increasing
Opthea OPT $839.3M Kifin Ltd 6.52% Increasing
Todd River Resources TRT $5.7M S2 Resources 22.99% Increasing
Family Insights FAM $4.5M Great Southern Flour Mills 11.83% Increasing
Oklo Resources OKU $47.4M Ruffer 5.63% Becoming
Wellness & Beauty Solutions WNB $4.6M Geoffrey Pearce 11.43% Increasing
Abundant Produce ABT $3.9M Top Cat Consulting Services 19.95% Increasing
Syrah Resources SYR $212.9M Bruce Gray 7.38% Increasing
Qantm IP QTM $23.1M Fidelity 8.25% Increasing
Hylea Metals HCO $4.0M Sachem Cove Special Opportunities Fund 5.15% Becoming
Domacom DCL $14.6M Halo Investments 9.09% Becoming
Celsius Resources CLA $12.9M Andrew Palleson 12.93% Increasing
Class CL1 $170.6M Pinnacle Investment Management 10.28% Increasing
GBST Holdings GBT $260.1M Pinnacle Investment Management 8.11% Increasing
Coventry Group CYG $92.4M Sandon Capital 9.50% Increasing
Imdex IMD $530.4M L1 Capital 5.88% Becoming
NZME NZM $196.0M Spheria Asset Management 8.83% Increasing
Yellow Brick Road YBR $20.5M Sandon Capital 21.40% Becoming
Genetic Technologies GTG $14.7M Jimmy Thomas 6.05% Increasing
Fleetwood Corporation FWD $179.8M Sandon Capital 9.40% Increasing
Bauxite Resources BAU $7.7M Sandon Capital 18.90% Becoming
Dark Horse Resources DHR $8.1M DGR Global 16.93% Increasing
Dark Horse Resources DHR $8.1M Neil Stuart 9.59% Increasing
Dark Horse Resources DHR $8.1M David Mason 7.03% Increasing
Lycopodium LYL $220.9M Celeste Funds Management 5.46% Becoming
Straker Translations STG $93.8M IOOF 5.03% Becoming
Veriluma VRI $10.2M A22 - Robyn Grover 5.06% Becoming
Adairs ADH $293.6M Yarra Funds Management 5.41% Becoming
Boyuan Holdings BHL $54.9M Liping Dai 5.94% Becoming
Kip McGrath Education Centres KME $43.2M Storm McGrath 6.97% Becoming
Fiji Kava FIJ $6.3M Avanteos Investments 5.74% Becoming

 

Sellers

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.

Company Code Market Cap Holder Current Stake Status
GBST Holdings GBT $260.8M Australian Ethical Investment 11.13% Decreasing
Coventry Group CYG $95.1M Spheria Asset Management 4.29% Ceasing
Universal Biosensors UBI $34.6M Vibumum Funds 19.01% Increasing
Ooh! Media OML $766.8M Yarra Funds Management 0.03% Ceasing
GBST Holdings GBT $260.8M Burgundy Asset Management 2.06% Ceasing
Triangle Energy TEG $28.1M Tamarind Resources 13.91% Decreasing
DroneShield DRO $95.3M Bergen Global Opprtunity Fund 13.09% Decreasing
Qantm IP QTM $23.0M Perpetual 9.32% Decreasing
City Chic Collective CCX $394.1M Gary Perlstein 4.97% Ceasing
XRF Scientific XRF $32.8M Skye Alba 8.84% Decreasing
Avita Medical AVH $964.5M Redmile Group 12.42% Decreasing
Celcius Resources CLA $10.9M Andrew Palleson 10.32% Decreasing
Baby Bunting BBN $454.6M IOOF 8.02% Decreasing
Berkeley Energia BKY $69.8M Fidelity 4.88% Ceasing
Cazaly Resources CAZ $16.5M Gold Valley Iron 4.06% Ceasing
Kip McGrath Education Centres KME $43.2M Kip McGrath 30.92% Decreasing

 

Dad gives son $2m worth of shares

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.