Sandon seeks $100 million in share sale

The activist investment and advisory firm wants to begin trade on the ASX before year-end.

Sandon Capital Investments Ltd is seeking an ASX listing by raising as much as $100 million through a share sale.

The firm’s sale will open on Tuesday next week and close December 6, according to a prospectus.

Sydney-based Sandon may sell as many as 100 million shares at $1 each. The company needs to sell a minimum of 16 million shares to be sold for its planned ASX listing to succeed.

Shareholders of Global Mining Investments Ltd last month voted to adopt the Sandon name and shares in the firm are expected to begin trading on the ASX on December 27.

It aims to pay a dividend of at least 6 cents a year with its strategy of investing in securities the firm considers “under-valued”.

“The company will pursue an active strategy of engaging with investees and other stakeholders to imrove value,” Sandon’s prospectus says. “There is a possibility this action may lead to litigation or other enforcement action.”

The firm intends to have as many as 25 different entities in its investment portfolio, mainly small-to-medium sized that “have an intrinsic value comprised largely of tangible assets."

Sandon may borrow funds as part of its investment strategy as well as short sell.

Sandon Capital Ltd, the manager of the firm’s investments, will be entitled to a monthly fee of 0.1042 per cent of the value of the company’s portfolio as well as 20 per cent of any outperformance over a benchmark reference rate each year. 

Gabriel Radzyminski, the managing director and chairman of Sandon, will be responsible for devising and implementing the firm’s investment strategy over a period that may last as long as 10 years.

Radzyminski, through his interest in Sandon Capital, indirectly holds 14.6 per cent of the voting power of Sandon Capital Investments. He is one of three board members of Sandon Capital Investments along with Paul Jensen and Matthew Kidman.

WAM Capital Ltd, WAM Research Ltd and WAM Active Ltd may subscribe to as many as 10 million shares and options.

Taylor Collison Ltd is the manager of the share sale.