PMC - Platinum Capital

[Dona Ferentes]

PMC’s constitution contains a sunset clause that must be tested every five years i.e. on the last business day of the calendar month following each fifth anniversary of the date of quotation of PMC’s shares. As PMC was listed on 29 June 1994, the next Assessment Date is 31 July 2024. The sunset clause states that if by the Assessment Date PMC’s share price is trading at an “average discount” of greater than 15% of PMC’s net asset value measured over the 12 calendar weeks preceding the Assessment Date, the PMC Board must call a general meeting of members within 90 days to vote on, amongst other things, all necessary resolutions to effect a voluntary winding up of PMC.

In light of the above, the PMC Board, with the co-operation of Platinum Investment Management Limited, announces that it will be undertaking a formal strategic review of the options available for PMC to maximise value for PMC shareholders as a whole, with the primary objective of reducing the share price discount to pre-tax NTA.

 

[Dona Ferentes]

was trading around $1.40, now up to $1.46; latest NTA was approx. $1.53

another LIC serial underperformer

PMC update on formal strategic review

On 26 April 2024, the Board announced that it was conducting a formal strategic review of the options available to it to maximise value for PMC shareholders as a whole, with the primary objective of reducing the share price discount to pre-tax net tangible asset backing per share.

Following the announcement on 26 April 2024, the Board appointed an independent corporate adviser to assist the Board with the assessment of a number of different strategic options that have subsequently been presented to it. The Board is pleased to advise that it has concluded its review and, subject to formal legal, tax and operational due diligence, the Board has agreed to pursue a scheme of arrangement under Part 5.1 of the Corporations Act 2001 (Cth) with the Platinum International Fund (Quoted Managed Hedge Fund) (ASX: PIXX).

PIXX is an open-ended managed fund whose units are quoted on the ASX AQUA market. If the scheme of arrangement is implemented, PMC shareholders will receive PIXX units in exchange for their PMC shares, with the number of PIXX units to be issued to each PMC shareholder calculated by reference to the relative NAV per unit of PIXX and post-tax net tangible asset backing per share of PMC after adjusting for associated transaction costs and impact to PIXX unitholders.

This will enable PMC shareholders to:
• continue to access Platinum Investment Management Limited’s global equity investment strategy via an ASX-quoted vehicle with the same investment objective as PMC; and
• hold units in PIXX that will trade close to their net asset value, meeting the Board’s objective of closing the share price discount.

The scheme of arrangement is subject to execution of a binding scheme implementation deed between PMC and Platinum as responsible entity of PIXX, as well as PMC shareholder and Court approval.

We look forward to providing a further update by the end of September 2024.

 

[Chipp]

was trading around $1.40, now up to $1.46; latest NTA was approx. $1.53

another LIC serial underperformer

PMC update on formal strategic review

On 26 April 2024, the Board announced that it was conducting a formal strategic review of the options available to it to maximise value for PMC shareholders as a whole, with the primary objective of reducing the share price discount to pre-tax net tangible asset backing per share.

Following the announcement on 26 April 2024, the Board appointed an independent corporate adviser to assist the Board with the assessment of a number of different strategic options that have subsequently been presented to it. The Board is pleased to advise that it has concluded its review and, subject to formal legal, tax and operational due diligence, the Board has agreed to pursue a scheme of arrangement under Part 5.1 of the Corporations Act 2001 (Cth) with the Platinum International Fund (Quoted Managed Hedge Fund) (ASX: PIXX).

PIXX is an open-ended managed fund whose units are quoted on the ASX AQUA market. If the scheme of arrangement is implemented, PMC shareholders will receive PIXX units in exchange for their PMC shares, with the number of PIXX units to be issued to each PMC shareholder calculated by reference to the relative NAV per unit of PIXX and post-tax net tangible asset backing per share of PMC after adjusting for associated transaction costs and impact to PIXX unitholders.

This will enable PMC shareholders to:
• continue to access Platinum Investment Management Limited’s global equity investment strategy via an ASX-quoted vehicle with the same investment objective as PMC; and
• hold units in PIXX that will trade close to their net asset value, meeting the Board’s objective of closing the share price discount.

The scheme of arrangement is subject to execution of a binding scheme implementation deed between PMC and Platinum as responsible entity of PIXX, as well as PMC shareholder and Court approval.

We look forward to providing a further update by the end of September 2024.

Interesting information , might do a spread sheet of NTA to shareprice on these type of LIC/fund type stocks . Definitely be some arbs on some of these

Half of the PMC spread corrected today is a thing

 

[Dona Ferentes]

Interesting information , might do a spread sheet of NTA to shareprice on these type of LIC/fund type stocks . Definitely be some arbs on some of these

Magellan just announced similar. The fund managers are loath to let go of FUM fee streams.

 

[Bellcose]

This will enable PMC shareholders to

The fund managers are loath to let go of FUM fee streams

Oh well, those who continue to hold will go from paying 1.5% to 1.23% in managements fees. You could call it a saving. I wouldn't.

Why anyone would continue to hold when there are other and less expensive products now available? It was listed in 1994 and peaked around the early 2000's. There wasn't much choice on the ASX at that stage.

 

[Dona Ferentes]

with a hurdle like this, definitely not an Olympic sport
.
Outcome of Platinum Capital Limited sunset clause

As previously advised, the sunset clause states that if by the Assessment Date PMC’s share price is trading at an “average discount” of greater than 15% of PMC’s net asset value measured over the 12 calendar weeks preceding the Assessment Date, the PMC Board must call a general meeting of members within 90 days to vote on, amongst other things, all necessary resolutions to effect a voluntary winding up of PMC.

Following the conclusion of the Measurement Period, the PMC Board is pleased to advise that PMC’s share price traded at an “average discount” of 8.3% of PMC’s net asset value during the Measurement Period. As a result, the sunset clause has not been triggered.

 

[Dona Ferentes]

PMC has closed the gap to an extent. currently $1.43 and a NTA of $1.52. ....getting there:

And likely to disappear, as is PAI, by early 2025

Platinum Capital Limited (PMC) is pleased to announce that it has entered into a scheme implementation deed with Platinum Investment Management Limited in its personal capacity, as responsible entity of Platinum International Fund (Quoted
Managed Hedge Fund) (ASX: PIXX) and as responsible entity of Platinum International Fund to undertake a scheme of arrangement conditional upon shareholder and Court approvals.

PIXX is an existing actively managed ETF whose units are quoted on the ASX, that is a “feeder fund”, primarily investing into the Underlying Fund. Platinum manages the investment portfolios of the Company, the Fund and the Underlying Fund, employing the same global equity investment strategy.

The Scheme Implementation Deed is the first formal step to give effect to the proposed Scheme. The Scheme, if implemented, will have the following key implications:
1. PMC shareholders will exchange their ASX listed shares for units in the Fund at a ratio based on the Fund’s net asset value and the Company’s post tax net tangible assets (adjusted for all costs associated with the transaction) immediately prior to implementation;
2. the current investment management agreement between the Company and Platinum Investment Management Limited will terminate without Platinum claiming, or the Company having to pay, termination fees; and
3. the Company will become wholly owned by the Fund and will be delisted from the ASX.

Following implementation of the Scheme, the Company’s investment portfolio will be transferred to the Platinum International Fund and the Company will be wound up.

 

[Dona Ferentes]

The Company signed a scheme implementation deed with Platinum Asset Management on 01 October 2024. Since announcing the Scheme Implementation Deed, further work has been completed on the timetable taking into account various factors including the operation of the tax franking rules.
As a result of this work, the indicative timetable for the Scheme has been revised, as announced to the market yesterday. Under the revised timetable, the Scheme is expected to be implemented in late July 2025 and as a result, the Scheme Booklet is now expected to be provided to shareholders in May 2025. .
.
happy in la-la land. keep those fees flowing. underperformance, meh.

 

[Bellcose]

Out of curiosity I had a glance at both PMC and PIXX. At least with PMC, holders obtained a somewhat steady dividend income - and that may have been one of the attractions. Not so with PIXX. Over the same period PIXX has been available, VGS has blitzed it in regard to price growth. And PIXX is a tiddler at < $300m.

Honestly, I fail to understand what reason there is to hold either PMC or PIXX but that's just me.