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

Amaysim/WAM: A Question Of Franking Credits

Quiddity Advisors

Event-Driven

On the 31 August this year, mobile virtual service operator <a href="https://www.smartkarma.com/entities/amaysim-australia-ltd" target="_blank" data-smartkarma-citation="entities:24288:1" rel="noopener">Amaysim Australia (AYS AU)</a> <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02274320-2A1246479?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> it had entered into a Share Sale Agreement (SSA) to sell Click Energy Group, its energy business, to <a href="https://www.smartkarma.com/entities/agl-energy-ltd" target="_blank" data-smartkarma-citation="entities:554:1" rel="noopener">AGL Energy Ltd (AGL AU)</a> for A$115mn, in cash. The divestment was <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02287479-2A1253306?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">completed</a> on the 30 September. The final net proceeds were A$51.9mn, after the repayment of A$53.05mn of bank debt, transaction cost, and working capital adjustments. 
<h3>The New News</h3>
AYS has now <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02303308-2A1260667?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">entered</a> into an SSA to sell its mobile ops to Optus Mobile for A$250mn, in cash. As the sale comprises AYS' core operating business, it is subject to shareholder approval. This is a simple majority vote. No further due diligence is required on Optus' behalf. 
Should the sale complete, AYS expects to distribute between A$207.2mn - A$225.7mn (A$0.67-A$0.73/share) via three tranches, the last of which may not occur until October next year, following an expected delisting and winding up in June.
The distribution will include a fully franked dividend of A$0.26/share.
Currently trading 1.5% below the maximum indicative terms. Expect this to trade tight to the distribution terms. Depending on their tax circumstances, domestic shareholders can take advantage of the franked dividend.
More below the fold.

On the 31 August this year, mobile virtual service operator Amaysim Australia (AYS AU) announced it had entered into a Share Sale Agreement (SSA) to sell Click Energy Group, its energy business, to AGL Energy Ltd (AGL AU) for A$115mn, in cash. The divestment was completed on the 30 September. The final net proceeds were A$51.9mn, after the repayment of A$53.05mn of bank debt, transaction cost, and working capital adjustments. 
The New News
AYS has now entered into an SSA to sell its mobile ops to Optus Mobile for A$250mn, in cash. As the sale comprises AYS' core operating business, it is subject to shareholder approval. This is a simple majority vote. No further due diligence is required on Optus' behalf. 
Should the sale complete, AYS expects to distribute between A$207.2mn - A$225.7mn (A$0.67-A$0.73/share) via three tranches, the last of which may not occur until October next year, following an expected delisting and winding up in June.
The distribution will include a fully franked dividend of A$0.26/share.
Currently trading 1.5% below the maximum indicative terms. Expect this to trade tight to the distribution terms. Depending on their tax circumstances, domestic shareholders can take advantage of the franked dividend.
More below the fold.

amaysim Australia

Amaysim To Be Wound-Up After Mobile Sale