PM Capital confirms offers for two Platinum funds
Make us a preferred source
Make us a preferred source on Google
The news: PM Capital Global Opportunities Fund has confirmed that it has tabled proposals to acquire two of Platinum Asset Management's listed funds.
The numbers: PM Capital said it has offered to acquire 100% of Platinum Capital and Platinum Asia Investments through a scheme of arrangement.
Shares in PM Capital (-0.4%) and Platinum Asset Management (1.7%) were both trading lower at 10:50am AEDT.
Platinum Capital shares rose 5.6% to $1.51 while and Platinum Asia Investments climbed 6.6% to $1.13.
PM Capital said its offer for Platinum Capital represents an indicative value of $1.73 per share, a 20.7% premium to its last closing price.
Its offer for Platinum Asia Investments values the target's shares at $1.30, a 20.1% premium to its last closing price.
The context: PM Capital said that the offers reflect "compelling, superior alternatives" to Platinum's plans to merge the two funds with its listed exchange-traded funds (ETFs) Platinum International Fund and Platinum Asia Fund.
What they said: During an investor call on Wednesday, Platinum CEO Jeff Peters said: "Okay, so for those on the call that don't know, we are proposing to merge the two listed investment companies, [Platinum Asia Investments] and [Platinum Capital] into the active ETFs PIXX [Platinum International Fund] and PAXX [Platinum Asia Fund].
"That's done by way of a scheme of arrangement in order to implement that, which is technically a takeover by PIXX and PAXX of listed investment companies.
"We need the [Australian Taxation Office] to give us some tax rollings, and that takes some time, and that process therefore will push, has pushed the date slightly by about three or four months into July."
The source: ASX
