Multiplex founders in SCI deal
Signature said it would buy back up to 25 million shares, equal to 37 per cent of the capital, offering 98 per cent of the net asset backing to any shareholders who accept the offer. Through RF Capital, the Roberts family already controls 42.8 per cent of the capital of Signature, which holds investments in a range of funds valued at $25.4 million, which is equal to 37.7¢ a share.
It also has significant potential tax losses totalling $40.9 million, or 61.1¢ a share, which it may be able to access in the future.
SCI's shares continue to trade at a steep discount to their asset backing, which has triggered the planned buy-back. The shares closed trading yesterday at 30.5¢, well below asset backing estimated at 38¢ a share. RF Capital may emerge with as much as 68.3 per cent of Signature if the buy-back of 25 million shares is completed. RF Capital does not plan to participate in the buy-back.
Frequently Asked Questions about this Article…
Signature Capital Investments has outlined a buy-back of up to 25 million shares, equal to around 37% of the company’s capital. The offer is being made at 98% of the company’s net asset backing to shareholders who accept.
The buy-back is structured so interests associated with Andrew Roberts — whose family founded the construction group Multiplex — would gain control if the repurchase proceeds. RF Capital, linked to the Roberts family, already controls 42.8% of Signature and could emerge with as much as 68.3% if the full 25 million-share buy-back is completed.
SCI is offering 98% of its net asset backing as the buy-back price. The company’s net asset backing is estimated at about 38 cents a share, so the buy-back price would be just below that level (98% of net asset backing).
According to the article, Signature’s shares closed trading at 30.5 cents, which is a steep discount to the estimated asset backing of about 38 cents a share. That discount is cited as the reason for the planned buy-back.
Signature holds investments in a range of funds valued at $25.4 million (equal to about 37.7 cents a share). It also has significant potential tax losses totalling $40.9 million, which amount to roughly 61.1 cents a share and may be accessible in the future.
RF Capital already controls 42.8% of Signature’s capital. The article states RF Capital does not plan to participate in the buy-back, but it could increase its effective holding to as much as 68.3% if the full buy-back proceeds and other shareholders accept the offer.
The company proposed the buy-back because its shares are trading at a steep discount to their estimated net asset backing. The buy-back is intended to address that discount and adjust the company’s capital structure.
Everyday investors should note the key facts reported: SCI has proposed a buy-back of up to 25 million shares at 98% of net asset backing; shares are trading below asset backing (30.5c vs ~38c); RF Capital (Roberts family interests) already owns 42.8% and could increase control to about 68.3% if the buy-back completes; and Signature holds $25.4 million in fund investments plus $40.9 million of potential tax losses. These points outline the corporate and ownership changes described in the article.
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