Bell Potter analyst William Gormly updates developments in the LIC market.
IBC Recommends CLF Shareholders Accept WAM Offer
WAM Capital Limited (ASX: WAM) has extended its unconditional off-market takeover bid to close at 7.00pm AEDT on 26 February 2021 (unless otherwise extended or withdrawn); and increased its offer consideration to 2 WAM shares for every 3.5 Concentrated Leaders Fund Limited (ASX: CLF) shares (previously 2 WAM shares for every 3.7 CLF shares as outlined in the bidder’s statement dated 3 September 2020). Using the 31 December share price and NTA, this represents a dollar value uplift in the premium by $0.51 (continued in report).
Upcoming Magellan Partnership Offer
Magellan’s ‘Partnership Offer’ to subscribe for an additional $1 for every $4 held is set to open on 18 January 2021, with eligible unitholders being those who were registered holders of the Magellan Global Fund (AXW: MGOC and ASX: MGF) on both the Record Date (8 December 2020) and the Calculation Date (8 January 2021). Entitlements will be calculated using the number of units held on either the Record Date, or the Calculation Date, being whichever is lower. The Offer Price for Closed Class MGF units under the Offer will be the NAV per unit on 26 February 2021, being the Business Day immediately prior to the 1 March 2021 Allotment Date (continued in report).
Bell Potter’s Indicative NTA tracks the ‘indicative’ movement of a LIC’s underlying NTA each month by monitoring the percentage movements of the disclosed holdings and using an index to track the movement of the remaining positions.
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