APL - Antipodes Global Investment Company

[System]

Antipodes Global Investment Company Limited has been established to provide investors with access to a global equities portfolio that will be actively managed by Antipodes Partners Limited.

The portfolio will be predominantly comprised of long and short positions in international listed securities; aims to generate returns over the long term in excess of the MSCI All Country World Net Index; and will be focus on capital preservation.

It is anticipated that APL will list on the ASX during October 2016.

http://antipodespartners.com/antipodes-lic/

 

[li21]

Any opinions on this company and anyone buying into the IPO?

 

[Dona Ferentes]

• 1HFY21 net profit after tax of $36.1m, increased from $12.1m in prior corresponding period
• Interim dividend of 2.0 cents per share (50% franked), taking the full calendar year divided to 4.5 cents per share (50% franked) which represents an annual yield of 4.3%2 and a grossed-up yield of 5.3%3
• Company performance of 10.2% for the half-year


A bit of a mini Platinum, run by a former 2IC from that house, APL offers investors access to a long short global securities investment portfolio with a currency overlay. It has seemingly struggled to get traction and awareness, or perform that well. As a Listed Investment Company, the shortcomings or lack of investor enthusiasm is reflected in a market shareprice consistently below NTA.

On-market buy-back

As at 31 December 2020, the Company had repurchased 74.3 million shares as part of the on-market share buyback program. This equates to 15.6% of the current shares on issue of the Company (or 13.5% of the shares on issue when the buy-back was first announced).

The NTA discount was 18.4% on 31 August 2020, the day before the CTO initiative was announced and ended the year (31 December 2020) at 10.8%. The Board is optimistic that the NTA discount will continue to narrow as a result of the improved investment performance from the Company's portfolio in conjunction with the nearing of the 2021 Buy-Back date (see details below).

Conditional Tender Offer
A Conditional Tender Offer (CTO) was put forward at the Company’s AGM held on 30 November 2020. 99.7% of shares voted were in favor of the CTO, a strong endorsement of this important NTA discount management initiative. The CTO, if triggered, will be run as an equal access off-market buy-back in November 2021 of up to 25% of the Company’s shares at a buy-back price based on post-tax NTA per share less 2% (2021 Buy-Back). The buy-back will be triggered if the daily average pre-tax NTA discount for APL is wider than 7.5% for the 12 months to 18 October 2021. As at 22nd February 2021, the average NTA discount since the start of the Discount Condition assessment period (19th October 2020) was 11.9%.

 

[Dona Ferentes]

and another (perhaps sub-optimal) LIC giving up on the gap to NTA. <<Currently trading at $1.12 while most recent NTA is $1.23 >>

Scheme to exchange APL shares for units in Antipodes Global Shares (Quoted Managed Fund AGX1)

Summary
• Antipodes Global Investment Company Limited , Antipodes Partners Limited (Manager) and Pinnacle Fund Services Limited (Responsible Entity) as responsible entity of Antipodes Global Shares (quoted Managed Fund - AGX1), have agreed to undertake a scheme of arrangement, conditional upon APL shareholder and Court approval.
• The Scheme if implemented will result in APL shareholders exchanging their APL shares for units in AGX1, an existing open-ended active ETF quoted on the ASX.
• The number of units received for each APL share will be based on APL's net tangible assets (NTA) relative to AGX1's net asset value (NAV) at the time of implementation.
• APL’s Independent Board Committee (IBC) unanimously considers the Scheme to be in the best interests of APL shareholders and considers the proposal to be a straightforward and very low-cost means of enabling shareholders to exit APL at close to NTA and to access the Manager’s investment strategy via an exchange traded fund.
• The IBC considers the Scheme superior to the Conditional Tender Offer approved at APL’s November 2020 AGM. Consequently, the CTO will be suspended pending APL shareholders' consideration of the Scheme.
• The Scheme, if implemented, will enable APL shareholders to:
o continue to access to the Manager's value-oriented global investment strategy via an ASX-listed vehicle with similar benchmark, fees and objective to APL; and
o hold a security that will trade close to NAV; or
o sell that security at close to NAV (subject to a bid-ask spread)

 

[Dona Ferentes]

• Following the First Court approval on 20 October 2021, Antipodes Global Investment Company Limited now provides APL Shareholders with the Scheme Booklet for the proposed restructure of APL by way of a scheme of arrangement between APL and APL Shareholders.
• The Scheme Booklet has been registered by the Australian Securities and Investments Commission and its release today is the next key step to give effect to the proposed Scheme.
• Implementation of the Scheme will result in APL Shareholders exchanging their shares in APL for units in Antipodes Global Shares (Quoted Managed Fund) (AGX1), an existing open-ended active ETF quoted on the ASX. The number of units received for each APL Share will be based on APL's net tangible assets relative to AGX1's net asset value immediately prior to implementation.

.... this should go somewhere towards losing the (stubbornly persistent) discount to NTA that APL has traded under. When implemented, then AGX1 will offer a liquidity, albeit with market makers taking their clip. Also, the dividend outcomes will be sub -optimal; no longer fully franked and twice yearly, but in the annual trust structure, months after 30 June, and less predictable.

 

[System]

On December 20th, 2021, Antipodes Global Investment Company Limited (APL) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between APL and its shareholders whereby APL shareholders will exchange their APL shares for fully paid ordinary units in Antipodes Global Shares (Quoted Managed Fund) (AGX1).