MAI - Mainstream Group Holdings

[System]

MainstreamBPO is one of the largest independent fund administrators in Australia. The Company provides administration services to the wealth management sector of the financial services industry. As at March 2015 the Company had Funds under Administration of approximately $50 billion.

The Company operates three businesses:

FundBPO: provides fund administration services for investment managers
SuperBPO: provides superannuation administration services for superannuation trustees
ShareBPO: provides share registry services for listed companies and exchange-traded funds

It is anticipated that MAI will list on the ASX during September 2015.

http://www.mainstreambpo.com

 

[System]

On October 20th, 2017, MainstreamBPO Limited changed its name to Mainstream Group Holdings Limited.

 

[Dona Ferentes]

and , exciting business that it is, a takeover offer has been received.

Mainstream is sitting on a $1.20 a share bid from offshore suitor Vistra, and has signed Vistra to a scheme implementation deed designed to see the offshore suitor take control in coming months.

However, Mainstream also negotiated “go shop” provision, giving it one month to solicit competing proposals. Vistra has customary matching rights during that time and options over a 19.9 per cent stake, but has said it would not stand in the way of a superior proposal.

 

[Dona Ferentes]

› The ‘go shop’ period under the terms of the Scheme Implementation Deed entered into between Mainstream and Vistra announced on 9 March 2021 has concluded.
› A Superior Proposal has emerged from SS&C Technologies Holdings for $2.00 cash per share by way of a scheme of arrangement, being a 67% premium to the price per share offered by Vistra on 9 March 2021.
› Mainstream has notified Vistra, and Vistra has until Friday, 16 April 2021 to match, or offer more favourable terms, as detailed in the Scheme Implementation Deed with Vistra.
› On 11 April 2021, Mainstream and SS&C entered into a Scheme Implementation Deed, conditional upon Vistra not exercising the Vistra Matching Right, Mainstream terminating the Scheme Implementation Deed with Vistra, and Mainstream paying to Vistra a break fee of $1.708 million.
› Pursuant to the terms of the Scheme Implementation Deed with Vistra, if SS&C’s Superior Proposal is deemed a ‘Qualifying Superior Proposal’, and if Vistra does not match, Vistra undertakes to fully support the Qualifying Superior Proposal.

Game on??
Its $2.00 cash, but is it real?

SS&C is a global provider to the financial services and healthcare industries, including wealth management, registered funds, hedge and private equity fund administration, transfer agency and retirement and pension fund services – including Australian Superannuation Funds. Founded in 1986, SS&C is headquartered in Windsor, Connecticut. Some 18,000+ financial services and healthcare organisations, from the world’s largest institutions to local firms, manage and account for their investments using SS&C’s products and services.

After this offer, opened at $2.03, and ended the day at $1.97 ... which is a "bob each way" for the prospect of a superior Superior Proposal to emerge?

MAI has been a "boring if predictable" stock since listing: which makes the prospect of some outside player coming in over the top as being unlikely.

If the boring metrics can be reversed, it could be cheap. If it was a struggle to gain relevance, will a new owner bring successful change?

....................... Earnings per share .................................. ............................ Return on Equity ...........................................................

 

[Dona Ferentes]

but which new owner?

Mainstream said it has received another unsolicited proposal from Apex, offering $2.80 in cash for each Mainstream share.

The fund administration provider is currently considering the offer and will update the market “in due course.”

 

[System]

On October 28th, 2021, Mainstream Group Holdings Limited (MAI) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between MAI and its shareholders in connection with the acquisition of all the issued capital in MAI by Apex Fund Holdings Australia Pty Limited.