Top member reports
Consensus community valuation
$0.840
Average Intrinsic Value
124%
Undervalued by
Active Member Straws
#humble
Added a month ago

Well well ...

OVH bid at 40 cents today!

BOOM

Still a spread of 3 cents, for a scheme and IRESS have committed to the purchase.

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#Media coverage
Added a month ago

01-Jun-2020:  https://www.afr.com/street-talk/iress-buying-onevue-goldman-sachs-lines-up-funds-for-raising-20200601-p54y9d

Well done CharlieMungerMan!  You were right on the money with this call.  Undervalued, and just a matter of time, as you said, and that time has come!

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#Binding Bid
Added a month ago

OneVue (OVH) annouces a binding SIA (Scheme Implementation Agreement) where Iress will acquire them for $0.40 in cash.  66.7% premium to the last closing price.  

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#Media coverage
Last edited a month ago

01-Jun-2020:  theWest.com.au:  Iress raising $170m to fund $107m acquisition of OneVue

Financial software provider Iress (ASX:IRE) is going cap in hand to investors to raise $170 million to fund the $107 million takeover of OneVue.   [there's a small ad at the beginning of the video, then the Iress/OVH news starts]

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#charliemungermagic
Added a month ago

Cracking quote by Charlie Munger

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#More cash coming in ... Madiso
Added 2 months ago

Street Talk - AFR

Clime-ing out of chaos: Madison Financial sale down to short strokes

Sarah ThompsonAnthony Macdonald and Tim Boyd

May 10, 2020 – 9.33pm

 

 

There's at least one ASX-listed player in the frame to buy ex-Sargon owned financial advice business Madison Financial Group.

OneVue managing director Connie Mckeage. The company she leads acquired Madison after Sargon went into receivership at the end of January. Photo: Louie Douvis

Street Talk understands private wealth adviser and money manager Clime Investment Management is one of the short-listed bidders jostling to snap up the up-for-sale business.

Final bids for Madison were lodged in the second last week of April, sources said.

Clime chief executive Rod Bristow told Street Talk that he couldn't comment "while there's a process running".

However, he did say that Clime was an "interested party around retail wealth management".

It is understood Clime was actively looking to expand its financial services offering and building out a retail wealth management arm was part of that strategy.

It's an interesting move - and comes amid plenty of disruption in the financial advice sector despite an ever growing pool of retirement savings and retail investors seeking advice.

The big banks, who once saw wealth management as a gold mine, have struggled to make it work and are on the retreat, while AMP and other large incumbents battle against the headwinds.

As the majors retreat, some contrarians are taking their place. And Clime, which has a reputation as a value investor in small caps and income, has made a small move into the sector. It had its AFSL updated to include private wealth advice and launched Clime Private Wealth in November 2018.

The wider Clime Group had $874 million under management as at March 31, which was down from $1.1 billion as at the end of December.

If nothing else, Madison could be one way to dramatically increase that number. The firm, which has a network of about 100 financial advisers, told potential buyers it had $3.8 billion in total funds under management in a pitch that landed in February. Melbourne-based corporate advisor Seaview Consulting is overseeing the sale.

Proceeds from the sale will land in the lap of ASX-listed wealth management platform business OneVue.

OneVue acquired Madison after embattled fintech Sargon went into receivership at the end of January, which triggered the appointment of administrators to a bunch of its subsidiaries.

OneVue appointed receivers PwC to protect its secured interest in Sargon, including 100 per cent of the shares of Madison, and moved quickly sell the business.

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#More positive news ...
Added 2 months ago

OVH just announced Sargon has been sold.

Could well have now > $30m net cash for $60m mkt cap.

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#Good News - means Diversa sale
Added 2 months ago

Exclusive (AFR)

New York financiers, PE team up to buy Sargon businesses

Sarah Thompson and Anthony Macdonald

May 1, 2020 – 1.16pm

 

A pair of New York-based financiers are leading a syndicate that is set to acquire three Australian superannuation services businesses owned by the now defunct Sargon Capital.

It is understood American Teddy Wasserman and Matthew Kibble, an Australian investment banker now working offshore, have teamed up with large global technology investment firm Vista Equity Partners to acquire Sargon's three businesses.

The syndicate's new company, dubbed Pacific Infrastructure Partners, has agreed a deal to buy Diversa Trustees Ltd, CCSL Ltd and Tidswell Financial Services Ltd, all owned by Sargon and up for sale via EY.

L-R: New York financier Teddy Wasserman and Matthew Kibble, an Australian investment banker now working offshore. The duo are closing in on Sargon Capital.  AFR

It is understood Pacific Infrastructure Partners has already received approvals from the Australian Prudential Regulation Authority and Treasurer Josh Frydenberg to complete the acquisitions.

The transaction is slated to settle in coming days, sources said.

Former PEXA chief executive Marcus Price is also understood to be involved as an adviser to Pacific Infrastructure Partners.

Price, who left PEXA after it was acquired by Link Group, is expected to be heavily involved in managing the business while it takes control of the Sargon entities.

The acquired businesses include Sargon's trustee, corporate trust and responsible entity operations, and its proprietary technology infrastructure.

Each of the businesses were part of the seven Sargon entities that went into administration in February and put into the control of EY. Lender to the wider Sargon group of companies, China Taiping Insurance Group, appointed receivers to the head company in January, which sparked the wider administration process.

New owners, new legacy

Pacific Infrastructure Partners is expected to inject fresh capital and provide fresh hope to the businesses, which were part of an ambitious superannuation services roll-up put together by Melbourne businessman Phil Kingston and a bunch of early backers.

It is understood Pacific Infrastructure Partners' investors told Australian regulators they had teamed up to invest in the financial services industry and to support the delivery of strong, independent, technology-enabled trustee solutions.

They are expected to seek to grow the business, using Sargon's technology, and make the most of superannuation sector tailwinds and under-investment in legacy systems.

Pacific Infrastructure Partners is owned by Wasserman's Cloverhill Capital LLC, Kibble's Kibble Holdings LLC (including KH Investment Trust) and Vista Credit Partners.

Wasserman and Kibble are expected to be on Pacific Infrastructure Partners' board and joined by financial services sector stalwart Sue Thomas. It is not known who will run Pacific Infrastructure Partners in the long term. It is said to be seeking to appoint an independent chairman.

Pacific Infrastructure Partners' respective investors and Marcus Price declined to comment when contacted by The Australian Financial Review.

The sale comes nearly three months after EY went to market seeking “urgent expressions of interest” from buyers for “shares in Sargon’s Australian and New Zealand trading businesses”, including Diversa, CCSL and Tidswell Financial Services. EY listed a series of holding subsidiaries that hold shares in those trading businesses.

A rollercoaster ride

The sale of the three businesses mark the final chapter in the rise and fall of Sargon Capital.

Sargon sparked to life in 2016 when it raised $100 million in equity and described its plans to acquire other trustees as “in stealth mode”. Its investors included Silicon Valley titan Peter Thiel, who accounted for $47.5 million of the funds.

The funds helped Sargon acquire Tidswell Financial, a 30-year old Adelaide based wealth manager that Sargon told investors “operated with a rare ‘extended’ trustee licence', giving Sargon the capacity to be the trustee of multiple superannuation products".

Sargon signed a deal to buy Diversa Trustees and CCSL from ASX-listed OneVue mid last year, at about the same time it was talking to investment bankers about lining up for an initial public offering and Australian sharemarket float.

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#ASX Update : +135% flows
Added 2 months ago
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#My letter to Chairman
Added 3 months ago

A snippet from a letter I sent to the OneVue Chairman.

I should add they have committed to a 2.19 cent Dividend (Chairman's Annual Report statement), on top of buying back 10%. The Div puts OVH on a gross yoeld of 12.8%.

See image.

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#300% Upside
Last edited 4 months ago

Bes small cap opportunity on the ASX..Has * 100m mkt cap * yet 40m net cash * a 10% or company buyback to start * is growing double digit * capital light * high ROIC * Incentives changed to EPS so return to profitable growth inevitable. * founder led business. * insiders own 20%. * on a multiple 3x below Comps Hub and Netwealth * industry ripe for consolidation. * 2.19c div coming so 7.8% grossed up yield * has highest weight of cash to mkt cap of all ASX companies so wiol return $ to shareholders or grow and expand Technically; oversold on RSI, Wave retracement complete, been in sideway balance 5 months, so upside break is upside for 5 months. Plus volume is drying up. 

Addition - Moelis now reported by the Australian newspaper to be looking to buy OVH out.

Addition (26/01) - here is the story in the Australian on Moelis potentially buying out - https://www.google.com/amp/s/amp.theaustralian.com.au/business/dataroom/moelis-looms-over-onevue-holdings/news-story/07fbebb09bae2a2e8bf7196489d045cc

Addition (30/01) - Big numbers OVH just put out its Q4 announcement. Funds under administration (FUA) reached a record $6B, up 36% on PcP ?Gross inflows for the quarter of $340m up 13% on PcP ?Quarterly net inflows of $134m up 32% on PcP ?Annual net inflows of $1.1 up 144% on PcP? 4 new managers were transitioned during the quarter adding 27 funds to the number of funds administered which now stands at 1,384 funds representing funds under administration of $532B confirming OneVue’s market leadership positionand capacity to scale

Addition (14/03). Madison now for sale. Expect proceeds of c$5-8m by April. SEQ was sold so $4m in the Bank. Then add in Administrator review of Sargon announced 18th March, expect anothrr $10m cash. So total on top of current $12m net cash Balance Sheet could well be $31m net cash for c$58m market cap. Insane cash levels. Once Administrator settles the 10% buyback starts.

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#ASX Update : More Cash
Added 2 months ago

Add $5 to $8m proceeds for Madison, as per Money Management article on return. 

Then another $10m + potentially from Sargon. 

Pretty clear from ASX announcement below, more $$ coming in. 

Could be >$30m net cash for $55m market cap !

 

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