Australian Leaders Fund suspended
Pengana Further to previous announcements regarding a proposed restructure,Australian Leaders Fund (ALF)has now sought the necessary shareholder and court approvals, with shares being suspended on 17 March and the scheme now legally effective. The investment portfolio had been largely liquidated back in November 2019, excluding two immaterial securities that were suspended, jointly accounting for less than 0.5% of NTA. The reported 28 February NTA was $1.026, adjusted for the 3c scheme dividend, current tax liability, operating costs, scheme costs and Investment Management Agreement termination fee. ALF will reduce its capital via a one-for-one in specie distribution of new units in the Watermark Absolute Return Fund, with the residual post-tax cash asset of ALF also being transferred to the fund (continued in report).
Cadence Capital pick with large uplift
Accounting for 2.8% of the Cadence Capital (CDM) investment portfolio, constituent company DeepGreen Metals has announced a definitive business combination agreement with an ESG-focused and New York listed special purpose acquisition company. The transaction merges a private procurer of battery metals from oceanic polymetallic rocks with experienced stewardship and deep operational and capital market capabilities, in the energy and resource sectors. The combined company will be renamed ‘The Metals Company’ (TMC), with the merger expected to be finalised during 2Q 2021. The transaction reflects a pro forma equity value for TMC of US$2.9bn and an Enterprise Value of US$2.4bn, representing an Enterprise Value to EBITDA of 1.2x as measured by the company’s estimated 2027 EBITDA of ~US$2bn. This includes an upsized US$330m of Private Investment in Public Equity at US$10.00 per share. TMC will continue to be led by Gerard Barron, DeepGreen Chairman and CEO, while Scott Leonard, CEO of SOAC, will join the Board (continued in report).
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