SiteMinder Limited

ASX:SDR

SiteMinder Limited

ASX:SDR
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$6.07 (-5%)
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#41
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17
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Reports (4) My Report Forum Investors
Forum Topics SDR SDR Bailador $20m Cash Realisation

Pinned straw:
jcmleng
Added 2 months ago

Seems clear that BTI wanted to emphasise that this is just a small adjustment, but which takes their stake below the substantial shareholder threshold. I appreciated the Nothing-To-See-Here tone of the announcement ! The $20m value was somewhat surprising as it seemed rather small.

Discl: SDR Held IRL and in SM

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Bailador has today announced it has completed a $20.0m cash realisation of a small portion of its investment in SiteMinder, while retaining 82% of its holding. The realisation was via a trade at an average price of $6.65 per share, 5.2% above Bailador’s previous carrying value of SiteMinder.

The valuation of this realisation represents an effective IRR of 37.9% and multiple of investment cost of 27.8x on Bailador’s investment in SiteMinder.

Following the realisation, Bailador will hold 4.9% of shares in SiteMinder, below the threshold for substantial holder declarations. As a result, on settlement of the transaction on 1 November 2024, Bailador will lodge a notice with the ASX ceasing to be a substantial holder of SiteMinder.

This realisation provides some rebalancing of Bailador’s investment portfolio, with SiteMinder remaining the largest holding by some margin. It represents a relatively modest realisation of Bailador’s SiteMinder investment, while providing cash availability for additional portfolio investments. 
Tom73
Added 2 months ago

$20m cash for their sell down of Siteminder is good to see at the price they got. The price lift in Siteminder recently was a good opportunity and maybe someone needs some cash for an expensive Christmas this year so a special dividend may be on the way, plenty of franking credits available:

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Or they could have a deal lined up, $20m is the current average cheque size.

I am unsure if creeping under the 5% substantial holder limit is a thing. Given their regular NTA disclosures they will be disclosing further sell downs, so a stealth exit via on market trades is unlikely, but not completely off the cards.

Disc: own RL

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jcmleng
Added 2 months ago

@Tom73 , thanks for that. I don't track BTI, so the cash balance of $38m puts the $20m proceeds in perspective!

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