It is my belief that Australian Super are planning to take Syrah Resources Private.
Here are some details retail holders should be aware of:
Current Position
Aus Super already owns c.32% of Syrah Aus Super are co underwriting the equity raise - unallocated shares can go to them. The equity raise effectively excludes institutions instead allocating the large "portion" to retail. Retail IMO are unlikely to fully take up their full allocation. Post raise - if retail take up is low and Aus Super steps in to backstop - it's stake could increase materially up to 39%
Convertible Notes
Aus Super holds convertible notes. Converting these gives more voting power without additional cash outlay - they can simply convert the debt to equity - ideal for a takeover scenario. If converted in full this could easily push them towards 50% and at the same time massively dilute existing holders.
Why this matters: At 50.1% Aus Super has control. At 75% they can pass a scheme of arrangement and force a delisting if structured properly If no other strategic holders mount resistance.
KEY TAKEAWAY. Aus Super don't need to bid big to take control - they just need no competition and enough fatigue in the register. This would allow them to lowball an offer well below the intrinsic value of Syrah. IMO the true value Lens of SYRAH is north of $1.00.
SYR Price at posting:
27.0¢ Sentiment: Hold Disclosure: Held
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