MLT - Milton Corporation

[sptrawler]

All very true @Dona Ferentes and it was the reason I bought AFI a year after MLT, the numbers stacked up MLT's way, but I was reluctant to buy more due to their inter relationship with Sol.
Also one of the reasons, why after having the two I mentioned about rotating out.
By the way Dona, thanks for your honest and impartial input in all threads, they are much appreciated.

 

[Dona Ferentes]

MILTON AND WASHINGTON H. SOUL PATTINSON AGREE TERMS OF A PROPOSED MERGER

• Milton Corporation Limited has entered into a Scheme Implementation Agreement with Washington H. Soul Pattinson and Company Ltd, under which it is proposed that WHSP will acquire 100% of the share capital in Milton it does not already own by way of a Scheme of Arrangement
• Milton Shareholders will receive WHSP scrip as consideration with Milton shares to be valued at a 10% premium to pre-tax net tangible assets adjusted for Milton final and special dividends. In addition, Milton shareholders will receive a fully franked special dividend (which Milton estimates will be up to 37cps) (Special Dividend), the fully franked final dividend (which Milton estimates will be approximately 8cps) (together the Proposed Dividends) and the fully franked FY21 final dividend from WHSP (which WHSP indicatively estimates to be 36cps, of which, based on the exchange ratio, and at current prices, Milton shareholders are estimated to be eligible for 7cps)
• Based on current prices, the proposal implies a value of $6.00 per Milton share, equivalent to an enterprise value of $3.99 billion based on a $4.05 billion equity value and $59.7 million net cash balance
• Implied value of $6.00 per Milton share represents a significant premium of 20.0% to Milton’s last closing price of $5.00 per share, a 9.9% premium to Milton’s pre-tax NTA of $5.46 per share, a 28.5% premium to Milton’s post-tax NTA of $4.67 per share and a 20.2% premium to the one month volume weighted average price of $4.99 per Milton share.

... one way of removing the NTA discrepancy.

 

[Belli]

The SMSF sold its MLT holdings on 1 July @ $6.24. Interesting that MLT indicated its restraint when it reduced the previous dividend to $0.0575 but can fund a $0.37 special dividend to sweeten the deal for the merger. My guess is the merger will likely go through but as the SMSF is only invested via LICs and ETFs and SOL isn't either of those, topped up on ARG, WHF, VAS and VGS.

Various arguments can be made and these were tossed around with an FP I contact sometimes who basically said it is akin to SOL paying $0.50 for $1 worth of assets.

For personal holdings, I'll ride out the merger and, should it occur, my holdings in SOL will increase.

 

[Dona Ferentes]

an FP .... basically said it is akin to SOL paying $0.50 for $1 worth of assets.

The listed assets are easy to price. They were at 95c.... Maybe he thinks there's some savings to be made in the simplifying of the management structures, listing obligations and reporting lines.

 

[Belli]

The listed assets are easy to price. They were at 95c.... Maybe he thinks there's some savings to be made in the simplifying of the management structures, listing obligations and reporting lines.

Possibly. Not entirely sure where this lot will sit though.

Washington H. Soul Pattinson - WHSP Large Cap Portfolio

WHSP Large Cap Portfolio is a high conviction portfolio of quality ASX listed companies that can provide an attractive income stream & capital preservation.

contactam.com.au

I wasn't fully across it until it was brought to my attention. It gave me pause for thought on whether to continue to hold MLT.

 

[Dona Ferentes]

If you ever ant to see the difference a bit of Corporate Activity makes, have a look at the numbers supplied in the Milton Monthly update, which show Total Portfolio Return (TPR) and Total Shareholder Return (TSR) numbers

MLT ............ TPR ........... TSR
6 mths ...... 15.46% ...... 33.69%
12 mths .... 33.20% ...... 59.14%
3 yrs ............ 9.33% ....... 15.59%
5 yrs ............. 9.75% ....... 12.60%
10 yrs ........... 9.20% ....... 12.01%
15 yrs ........... 6.96% ........ 7.69%
Since incept.. 8.84% ........ 9.90%

TPR combines the change in value of the NTA per share with the dividends paid in the period.
TSR combines the change in share price with the dividends paid in the period and captures the impact of any premium or discount to NTA.

 

[Dona Ferentes]

Milton's Annual is out, and as to be expected, in what may be the last time, the year has been good for shareholders

• Total portfolio return of 33.2% in FY21, outperforming the All Ords Accumulation index a Strong income recovery in 2H21 with a 17.8% increase in dividend income vs PCP
• FY21 Net profit after tax of $92.4 million on total investment revenues of $103.5 million
• Fully franked final dividend of 8.0 cps and full year fully franked dividends of 13.75 cps
• Previously announced proposed merger with Washington H Soul Pattinson (WHSP) subject to shareholder vote later this year, with Scheme Booklet to be dispatched to Milton shareholders in August
• Total shareholder returns for FY21 of 59.1%, in part reflecting strong Milton and WHSP share price performance post the announcement of the proposed merger.

Investments were increased in Johns Lyng Group, Magellan Financial Group, Amcor PLC, Pro Medicus, Carsales.com, EQT Holdings, Coles Group, Pendal Group, IOOF Holdings and Cleanaway Waste Management. A new investment was made in IPH.

$43.2 million of portfolio sales were made in 2021 and included the complete disposals of Milton's investments in Coca Cola Amatil (due to takeover), QBE Insurance Group and Sims. Milton's Investment in the Charter Hall Long WALE REIT was reduced.

During the year Woolworths Limited demerged its hotel business Endeavour Group Limited. As is its practice, Milton recognized the transaction through its capital account as it is non-cash. We note that certain industry peers will record this as a demerger dividend through profit and loss. The gain on demerger taken to reserves is approximately $16.1 million.

 

[divs4ever]

did i miss out on a job ??
investment officer at MLT ... LOL

i hold PME 'free-carried' bought at 16.5c , EQT 'free-carried' got them many years back PDL 'free-carried ' bought as BTT about $2.30 from memory , have some COL ( thanks to WES ) , have some IFL but can't get my target price to add more but prefer QIP oiver IPH if i invest back in that niche i made a handy profit when XIP was taken over

yes i got evicvted in profit on CCL , i 'channel trade' QBE , and exited SGM years ago

i didn't really take notice of MLT until they did the share split , but i could never get my target price , looks like i have missed out

i hold SOL ( one of the first shares i bought ) and have made a bundle by reading the SOL share-holder report every year ( especially the part about the companies invested in )

DYOR

 

[Belli]

did i miss out on a job ??
investment officer at MLT ... LOL

Your style of posting seems very familiar. I'm sure I saw similar a few years ago on another site. I cannot remember which one it was but after reading a number of posts by this character, who was really off the wall with completely scattered and disjointed thoughts, I decided not for me.

Anyways, if I were to take a position in the Miller entities, BKW would be a better choice rather than SOL which is way over priced based on it's underlying NTA.

 

[divs4ever]

that is very possible , i like to seek extra views both in Australia and internationally , it is the only way to get genuine 'grass-roots ' opinions

regarding BKW my share-holding there is larger than SOL but i did buy using ( partly ) the SOL analysis in the shareholder reports , profits made on share that SOL has an interest in has many times over paid for the SOL investment ( and now SOL shares are going to boot after years of nothing exciting )

i hold several shares that the Milner family have an interest in MLT was on my shopping list but could never get it at the price i wanted

cheers

 

[Dona Ferentes]

The Court has approved convening of the Scheme Meeting, for the Milton tie-up with SOL.

Dates look more solid. Vote by/ on 13 Sept. Expect the Scheme booklet in the next few weeks.

 

[Dona Ferentes]

I am surprised by the rise and rise of MLT .... and SOL (up to $36), for that matter.

Today, even after going ex-dividend of 8c, the SP is down only a few cents, and in the high $6.80s.
With the NTA out soon, it will have increased but that much more. The merger may bring advantages, but all I'm seeing is a 10% premium.

 

[Dona Ferentes]

I am surprised by the rise and rise of MLT .... and SOL (up to $36), for that matter.

MILTON SHAREHOLDERS TO RECEIVE 0.1863 WHSP SHARES FOR EVERY MILTON SHARE THEY OWN IF SCHEME IS APPROVED

• The Exchange Ratio for Milton’s proposed merger with Washington H. Soul Pattinson (WHSP) has been set at 0.1863
• The Exchange Ratio implies a total value of $7.18 per Milton share •

 

[Dona Ferentes]

Milton advises that the Scheme Resolution was passed by the requisite majorities of Milton Shareholders at the Scheme Meeting held earlier today, with:

• 93.22% of Milton Shareholders present and voting (either in person or by proxy, attorney or corporate representative) .. in favour of the Scheme Resolution; and
• 82.78% of votes cast .. in favour of the Scheme Resolution.

The Implementation of the Scheme remains subject to approval by the Court and the satisfaction or, where capable, waiver of certain other customary conditions as outlined in the Scheme Booklet. Milton has applied to the Court for approval of the Scheme at a hearing scheduled to commence at 10.15am (AEST) on 20 September 2021. Milton will make a further announcement after the conclusion of the Court hearing.

If the Court approves the Scheme, Milton proposes to lodge the orders of the Court with the Australian Securities and Investments Commission on 21 September 2021, at which time the Scheme will become legally effective pursuant to section 411(10) of the Corporations Act 2001 (Cth).

Subject to the Scheme becoming Effective:
• Milton will apply for its shares to cease trading on ASX from the close of trading on 21 September 2021;
• the Special Dividend Record Date will be 7.00pm on 22 September 2021;
• the Scheme Record Date will be 7:00pm on 27 September 2021; and
• the Scheme is expected to be implemented on 5 October 2021 (Implementation Date)

 

[Dona Ferentes]

Milton Directors have determined to pay a fully franked special dividend of 37 cents for each Milton share held by shareholders as at the record date, being 7:00pm on 22 September 2021 .

Payment of the Special Dividend is currently expected to occur on 5 October 2021.


and then, off to SOL

 

[System]

On October 6th, 2021, Milton Corporation Limited (MLT) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between MLT and its shareholders in connection with the acquisition of all the issued capital in MLT by Washington H Soul Pattinson & Company Limited.