Is CIMBS still a substantial holder? If so, shouldn't 1% change...

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ProfessorBen

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26/09/20

22:01

Post #: 47653705
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Originally posted by ImaScientist: ↑

Guys, I don't think this has anything to do with Titomic. If you have a closer look at the announcement, the agreement is between CS and CGS-CIMBS (a Singapore investing company).

If you look at the contract, and its conditions, both the borrower AND the lender have the right to return/recall the borrowed/leased stocks early. The fact that CGS-CIMBS can recall the shares at any time with 4 business day prior notice is GREAT, this would make it more difficult for CS to manipulate the share price. I believe the slide in SP is currently not due to manipulation.

CGS-CIMBS bought TTT shares since Sept last year and has accumulated 12,681,517 shares (8.35% at that time) as of disclosure on 2nd March 2020. Everyone is required to disclose when they become a majority holder of an ASX-listed stock at more than 5% holding, and subsequent every 1% increased in holding (see https://www.clearstream.com/clearstream-en/products-and-services/market-coverage/asia-pacific/australia/disclosure-requirements-australia-1281512)

Previously, CS holds 8.33% and today 9.81% (more than 1% increase, hence the disclosure).

Since CS only borrow TTT stocks from CGS-CIMBS, this means that CGS-CIMBS has purchased an extra 2,355,483 (15,037,000 - 12,681,517) shares after their initial disclosure after becoming a major substantial holder in March 2020. Note that the current purchase of 2+ million shares by CIMBS is below the 5% threshold and thus NO disclosure to ASX is required.

In conclusion, CIMBS continues to buy shares of TTT to lend to CS. I don't think Titomic will know what CIMBS and CS are up to with their holding. Perhaps someone with better knowledge can educate us.

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Is CIMBS still a substantial holder? If so, shouldn't 1% change criteria apply instead of 5% threshold you've suggested in the last paragraph?

Last edited by ProfessorBen: 26/09/20

TTT Price at posting: 64.5¢ Sentiment: None Disclosure: Not Held
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