SNC - Sandon Capital Investments

[System]

Sandon Capital Investments Limited (SNC) will primarily invest in Securities listed on ASX with an initial focus on small to medium sized entities that have an intrinsic value comprised largely of tangible assets, for example, cash, liquid Securities and other assets for which a value can be obtained or derived.

The Company currently expects that its Portfolio will typically comprise no more than approximately
20-25 Securities and cash (or similar investments). The number of Securities, and the levels of
cash, within the Portfolio will vary from time to time.

http://www.sandoncapital.com.au

 

[finicky]

Getting more interested in this. Pity I didn't feel that way during the CCP Wuhan China Virus (CWCV) Covid panic - in March 2020 SNC pinged .40. Has profits and franking credits in reserve to underpin yield for at least a year and of course those should continue to accumulate. A 90c share price for net tangible assets after tax of 94c as reported end of Feb 2021. Activist LIC that has a pretty good (10%) average annual return since inception. Slight concern that at end of Feb they were holding only 1% cash. Good chance that their March report will show a boost from their conviction IDT investment.

 

[Dona Ferentes]

Has profits and franking credits in reserve to underpin yield for at least a year and of course those should continue to accumulate. A 90c share price for net tangible assets after tax of 94c as reported end of Feb 2021. Activist LIC that has a pretty good (10%) average annual return since inception. Slight concern that at end of Feb they were holding only 1% cash. Good chance that their March report will show a boost from their conviction IDT investment.

Key contributors to the month’s returns included IDT Australia Ltd ... +4.3%, and a few others helped Portfolio [to be] up 7.0% for the month, on a gross basis, after investment management fees and brokerage but before performance fees and corporate expenses, compared to an increase of 1.8% for the All Ordinaries Accumulation Index.

At end of March 2021
Listed Australian Equities 74%
Listed International Equities 11%
Unlisted investments 14%
Cash or Cash Equivalents 1%

And the discount to NTA reduced slightly.

 

[Dona Ferentes]

and Sandon is another (small at $107 million) LIC that is selling below NTA (around 13%) and trying to narrow that discount

SNC announces intention to pay increased dividends

The Directors of Sandon Capital Investments Limited (ASX:SNC) are pleased to announce their intention to pay a 2.75 cents per share fully franked final dividend in respect of the financial year ending 30 June 2021. This will represent a meaningful increase of 10% on the previous final dividend.

Furthermore, the Board anticipates paying an interim dividend for FY22 of a similar amount, provided the Company has sufficient profit reserves, franking credits and it is within prudent business practice to do so. On this basis, the new annual dividend rate is anticipated to be 5.5 cents per share.

SNC currently has a profits reserve equivalent to 28.1 cents per share and has franking credits of 9.4 cents per share, representing the potential for payment of more than 26 cents per share in future fully franked dividends at the 26% corporate tax rate. This equates to nearly 5 years of fully franked dividends, assuming an annualised dividend of 5.5 cents per share.

 

[Dona Ferentes]

SNC announces record investment returns and Net Profit :

• Record gross investment returns of $56.5 million, an increase of 837% on the pcp
• Net Profit of $37.3 million, an increase of 531% on the pcp
• Gross investment returns of 68.3%, beating the All Ords Accum. Index by more than 38%
• Fully franked final dividend of 2.75 cents per share, an increase of 10%
• Fully franked special dividend of 1.00 cent per share


SNC Gross performance to 30 June : 1yr .. 68.3% ; 2 yrs .. 21.8% ; 3 yrs .. 15.8%pa ; since inception .. 12.5% pa
All Ordinaries Accumulation Index : 1 yr ..30.2% ; 2 yrs .. 9%pa ; 3 yrs .. 10.3%pa ; equivalent .......... 9.7%pa
outperformance ..... +38.1% ..... +11.9% .......... +5.5% ......... +2.8%

Several stocks where Sandon has agitated for change over long periods had transformative years, including Boral (taken out by Seven Group and up 96 per cent during FY21), Iluka (which rose 90 per cent and demerged the Deterra Royalties business after a long Sandon campaign) and Fleetwood Group (up 36 per cent after a number of operational changes).

Pharmaceutical manufacturer IDT, which Sandon bought for 9¢ a few years ago based on the value of property, plant and equipment, has also rocketed after moving into the frame as a manufacturer of local COVID19 vaccines. The stock has almost doubled since June 30, showing how patience can be rewarded in unlikely ways when you are in the right place. The Sandon annual report shows two small holdings that might require equal amounts of patience: taxi group A2B Australia and beaten up software firm Nuix.

 

[divs4ever]

SNC ANNOUNCES CASH TAKEOVER OFFER FOR CCIL SHARES

Sandon Capital Investments Limited (ACN 107 772 467) (ASX:SNC) (SNC) and Carbon Conscious Investments Ltd (ACN 629 272 037) (CCIL) are pleased to announce they have entered into a Merger Implementation Deed (MID) for a recommended conditional off-market takeover offer pursuant to which SNC will offer to acquire all the issued and outstanding ordinary shares of CCIL (each a CCIL Share) not owned by SNC and Sandon Capital Activist Fund (another fund managed by Sandon Capital Pty Ltd) for $0.0667 in cash for every CCIL Share held (Offers).

The Offers values CCIL at approximately $11.6 million. In addition to the Offers, the MID permits CCIL to pay a fully franked dividend to its shareholders prior to the Offers closing, which CCIL intends to do, for the period to 31 March 2024, before the Offers open for acceptance.

About CCIL CCIL is an unlisted public company that holds carbon property rights with respect to 30 farms in the Western Australian wheatbelt covering nearly 17,000 hectares of land. CCIL manages large scale projects registered with the Clean Energy Regulator that generate Australian Carbon Credit Units.

As an unlisted public company, CCIL shareholders are not able to sell their CCIL shares on ASX or any other securities exchange.

The Offers presents an opportunity for CCIL shareholders to dispose of their CCIL shares.

The Offer The Offers contains a 50.1% minimum acceptance condition.

There are a number of other defeating conditions, including there being no prescribed occurrences.

The MID also includes exclusivity arrangements and other customary clauses.
A copy of the executed MID is attached to this announcement as Appendix A.
It is expected that SNC's Bidder's Statement containing further information about the Offers will be posted to all CCIL shareholders in the week commencing 22 April 2024.

CCIL's Target's Statement will be accompanied by an independent expert's report (IER) that considers, among other things, if the Offers are fair and reasonable to non-associated CCIL shareholders.

IBC Recommendation and CCIL Directors’ Intentions In connection with the Offers, the CCIL Board established an Independent Board Committee (IBC) comprising Mr Andrew McBain and Mr Jonathan Trollip to assess SNC's proposal.

CCIL Directors Mr Paul Jensen and Mr Greg Harvey recused themselves from the process as they both serve as Directors of Alterra Limited, CCIL’s 2 nd largest shareholder.

The IBC unanimously recommended SNC's proposal to the CCIL Board, and unanimously recommends CCIL shareholders accept the Offers in the absence of a superior proposal and subject to the independent expert concluding that the Offers are reasonable to non-associated CCIL shareholders.

Each CCIL director has indicated that they will accept the Offers in respect of all CCIL Shares they control in the absence of a superior proposal and subject to the independent expert concluding that the Offers are reasonable to non-associated CCIL shareholders.

This announcement has been authorised by the board of directors of SNC and the board of directors of CCIL.

i hold SNC

bought this week ironically and still have part of the buy order unfilled