SYDNEY: WAM Capital Limited has announced a conditional off-market takeover bid for Contango Income Generator Limited.
The offer consideration is 1 WAM Share for every 3 CIE Shares. This represents a premium of 17.6% to CIE’s 25 September 2020 share price, 18.1% to CIE’s one-month volume-weighted average price (VWAP) and a premium to CIE’s reported pre-tax net tangible assets (NTA) as at 31 August 2020.
An exit opportunity with WAM Capital CIE has delivered deeply disappointing results and failed to provide shareholder value. CIE Shareholders have suffered a persistent and deepening share price discount to NTA, poor investment portfolio performance, an illogical change in investment strategy and an increase in fees, dilution of shareholder value, poor corporate governance and the CIE Board’s failure to present Wilson Asset Management’s superior alternative proposal.
In making this offer, WAM is providing all CIE shareholders with the opportunity to exit their positions in CIE at an 18.1% premium to CIE’s one-month VWAP of $0.632. If this offer is successful WAM will provide CIE shareholders with a choice, either remain a WAM Shareholder, or utilise WAM’s superior on-market liquidity to exit their position.
Acquiring WAM shares provides access to Wilson Asset Management’s investment expertise and experience and commitment to shareholder engagement, and WAM’s track record of investment portfolio outperformance, greater market capitalisation and on-market liquidity, and lower management expense ratio.
Benefits of the Offer to WAM Shareholders WAM Capital employs both a research-driven investment process focused on undervalued growth companies and a market-driven investment process that seeks to invest in discounted assets and market mispricing opportunities.
WAM Capital Limited is a listed investment company (LIC) managed by Wilson Asset Management. Listed in August 1999, WAM Capital provides investors with exposure to an actively managed, diversified portfolio of undervalued growth companies listed on the ASX, with a focus on small-to-medium sized businesses. The Company’s investment objectives are to deliver a stream of fully franked dividends, provide capital growth and preserve capital.
Wilson Asset Management has a track record of making a difference for shareholders and the community for more than 20 years. As the investment manager for seven leading LICs: WAM Capital, WAM Leaders, WAM Global, WAM Microcap, WAM Alternative Assets, WAM Research and WAM Active, Wilson Asset Management invests over $3 billion on behalf of more than 88,000 retail investors. Wilson Asset Management is the creator and lead supporter of Future Generation Australia and Future Generation Global, a passionate advocate for retail investors and a member of the global philanthropic Pledge 1% movement.