This is what I think might be in play (apologies if its already been canvassed):
From 27 March 2025 to 29 April 2025 Datt purchased circa $800K worth of shares on-market
increasing his voting power from
11.28% to 12.81%.
From 29 April 2025 to 5 May 2025 Datt accelerated (nearly doubled) his rate of on-market purchases spending circa $1.7M
increasing his voting power from
12.81% to 14.83%.
Generally, under the Corporations Act 'creeping acquisitions limit' someone or an entity cannot acquire more than 20% of an ASX listed company unless certain exceptions apply.
When someone achieves holdings giving rise to 20% voting power it puts them in a strategically powerful position, for example to be able to:
- Influence control over board appointments
- Singlehandedly block special resolutions (for example issue or reduction of capital)
- Protect minority interests - for example you can block a compulsory acquisition which requires 90% shareholding from the bidder
If Datt Capital are looking for 20% ownership the company/ major shareholders cannot really do much except try and buy shares on market themselves to increase their percentage ownership relative to an entity like Datt Capital. We know this is not occurring as it is only Datt giving change in substantial interest notices at present.
If Datt Capital are marching towards the 20% (needs a further 5%) ownership limit this will likely maintain significant upward pressure on the SP.
If this is Datt's strategy it likely means they see very significant upside to the company from this juncture. Why else would an entity throw such serious coin at it?
All my speculation. Looking for the next change in substantial holding notice...time will tell...Cheers
