Australian (ASX) Stock Market Forum

SOL - Washington H. Soul Pattinson and Company

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44c dividend pays tomorrow

Tariff conniptions seem to had little impact on SOL of late.
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Soul Patts, Brickworks agree to $14b merger; $500m raise launched​


Investment house Soul Patts is set to merge with Brickworks, forming a $14 billion ASX-listed investments, private capital, property and building products giant.

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Soul Patts and Brickworks agree to transformative $14b merger


i hold SOL and BKW ( in different portfolios ) ( BKW being 'free-carried ' )

OOPHhh

another big surprise today

i thought SOL might try another bite at PPT ( of part of it )

more reading and thinking

hmmm
 

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divs4ever said:
Soul Patts and Brickworks agree to transformative $14b merger


i hold SOL and BKW ( in different portfolios ) ( BKW being 'free-carried ' )

OOPHhh

another big surprise today

i thought SOL might try another bite at PPT ( of part of it )

more reading and thinking

hmmm
Click to expand...
Great "Coffee Can" stock in my view & i'm just waiting for that opportunity to BUY.....Now that they are merging i will have to do another assessment in regards to my buy in Price.
 
in theory SOL looks like a steal at the current price , you will get increased exposure to BKW at no extra charge

but i bought my SOL in 2011 ( sub $14 ) so i will not be rushing to buy more

on the positive side it kicks the guts of the predator activists that have been trying to break up this symbiosis for years ( maybe a decade )

i assume the larger entity will have some cost savings ( mainly in administration ) , but at an estimated $14 billion market cap. where does that put the new company in the index , inside the top 50 , maybe even close to the top 20 ?

if so some ETFs will need to buy more TopCo , to weigth their portfolio properly ( and SOL is NOT a super liquid share currently )
 
ShareSuccess said:
wasn't BKW created to protect SOL against earlier Takeover attempts of SOL?
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i am not sure ;created' is acute but the cross-shareholding had 'poison pill' as one of the objectives , the other stated reason was the div. income of each assisted the other during weakness in the respective cycles

most predators wanted to break up SOL and maximize the capital gains by selling the parts , after all it is basically LIC ( until the merger completes )
 
ShareSuccess said:
wasn't BKW created to protect SOL against earlier Takeover attempts of SOL?
Click to expand...

Kind of but slightly more convoluted than that

"The cross-shareholding was created in 1969 via a share swap as part of a long-term strategy of both boards to achieve diversification of earnings and a degree of takeover protection at a time when takeovers were becoming more common in the Australian market."

 
now i hear some calling this a take-over of BKW

now this maybe so but BKW has been getting bashed recently , and was a realistic chance of receiving a hostile take-over offer ,

one might ask 'friendly take-over or rescue

SOL

Substantial Shareholders List As of 11 Sept 2024​

NameShare HoldingShares Held (%)
Brickworks Ltd94,314,85525.66%
Robert Dobson Millner23,440,7686.38%
Thomas Charles Dobson Millner21,975,4645.98%



BKW

Substantial Shareholders List As of 31 Aug 2024​

NameShare HoldingShares Held (%)
Washington H Soul Pattinson and Co Ltd65,645,14043.03%


BKW had been whittling away the SOL holding to free up cash ( instead of waiting for the six-monthly divs )
 

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ShareSuccess said:
With such a Big gain Today, it will be interesting to see if the short sellers come in for a bit of action?
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normally SOL isn't liquid enough for such games , HOWEVER .. TopCo should ascend to safely be in the ASX TOP 50 ( and a tiny chance the ASX TOP 20 ) that means those share-lending fund-managers will have plenty of shares to lend ( to willing short-sellers ), until the deal is done it is BKW that looks fair game for short-sellers , it could easily drop $5 to $10 in a trading day

( i hold BKW ( 'free-carried' ) and SOL )
 
....while Todd Barlow is excited about getting his hands on Brickworks’ brick-making business, which he thinks can flourish with a bit more capital and a private equity style of management, even more important is the chance to add $2 billion worth of industrial property to Soul Patts’ portfolio.

As Barlow says, the Soul Patts model is to offer ASX investors the chance to invest in a publicly listed private family office, with investments across listed equities, private equity, private credit and strategic investments, and a growing accent on private capital. But the gap has been property, and with this deal that asset class goes from 1.7 per cent of Soul Patts’ portfolio to 19 per cent.

“If you think about anybody who comes into a lot of money, they tend to set up a family office, and they tend to invest broadly the same way. They’ll be diversified across asset classes. They will have some concentrated bets in the things that they know, like and understand,” Barlow explains.

“Why does everyone invest in a similar way, when they can do whatever they want? Because it’s an effective way of reducing your risk and getting outsized returns by having uncorrelated asset classes. And so that’s what we’ve really been trying to achieve. And if you think about having 19 per cent of a diversified portfolio sitting in property, that seems to be about the right allocation.”
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what's next?
 
SOL getting back close to the early exuberance when the BKW action was announced

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