Investment Matters

Company news: Ausenco

Ausenco has entered into a Scheme of Arrangement implementation agreement with Resource Capital Limited (RCF).  This scheme is for RCF to acquire control of Ausenco, and subsequently delist (privatise the business).

First Samuel has agreed to accept this proposal subject to no higher or better bid eventuating (which remains possible).  The scheme is set at $0.40cps, which is 63% higher than what Ausenco was trading at prior to the RCF proposal being initially disclosed.

Ausenco started the year trading at $0.25cps, and hence the offer represents a 60% gain for FY-16.  However, the price is below the original purchase price for many clients.  Whilst ultimately this is a loss for those clients, it will allow us to reinvest in better (risk/reward) investments (of which we have several alternatives).