RAMcap has designs on AMAYSIM
December 23, 2020
RAMcap CEO Mr Richard Matthews has made recent email contact with AYS chair Mr Andrew Reitzer seeking a meeting to elaborate on a proposal for RAMcap to make a scrip takeover offer for AYS. The bid consideration of the proposed offer, comprising either RAMcap ORD shares and options or REDP shares and options would value 1 AYS share at 85 cents (for the ORD offer) and 90 cents (for the REDP offer).
In response to CEO Richard’s email a Zoom meeting was conducted on Tuesday 22nd with Mr Simon Mordant at Luminis Partners. RAMcap contends that its proposed offer is superior to the recently announced scrip component of the offer from WAM Capital Limited (‘WAM’)
Below is the text of the email response sent today to AYS General Counsel.
I refer to the Zoom meeting on Tuesday 22nd with AYS adviser Mr Simon Mordant AO. I do not consider that the recent proposal to AYS chair Mr Reitzer has been given fair consideration by Mr Mordant.
I reject the following assertion by your adviser Mr Mordant:
that there is no liquidity in RAMcap shares: as was elaborated in my recent email to Mr Reitzer,
liquidity in RAMcap shares and options will be provided in June and September by RAMcap Limited;
I reject the implication- from the statements by your adviser Mr Mordant that RAMcap is a small fund
whilst WAM is a billion dollar company- that the RAMcap offer is therefore inferior;
We have asserted that a major beneficiary of the AYS board endorsed WAM offer is Mr Geoff Wilson
whose investment management company will receive additional fees for management of the funds
coming into WAM from acceptors of the WAM scrip bid. We pointed out to Mr Mordant that WAM
lost $26million in FY2020 and that $14million in management fees was paid by WAM to Mr Wilson’s
investment management company in FY2020;
I note the contention by Mr Mordant that he has made contact with AYS shareholders and that
acceptors of the WAM scrip offer will sell their shares ‘ within 2 days ‘ of their listing;
I am surprised to note the oft-stated refrain from Mr Mordant that he is not interested in RAMcap’s
superior investment performance.
I shall be submitting to my board colleagues an enhancement of our proposed offer and will advise
Mr Reitzer in due course.