OntheHouse Holdings Limited (ASX:OTH) provide software and website solutions to real estate agents in Australia and New Zealand.

ASX Code

OTH

Share Price

THE ACTIVIST CAMPAIGN

Through its analysis, Sandon Capital discovered BHP’s application to the Western Australian government for the development of South Flank, a key project covered by the MAC Royalty.  Sandon Capital believed this would more than double the royalty payments though this would never be properly reflected while housed within ILU, a cyclical and capital-intensive mining company.

Gabriel Radzyminski became a director.

OTH announced it had received a non-binding, conditional, indicative proposal from a consortium comprising Macquarie Group Limited, CoreLogic Australia Holdings Limited and 77VSV (Michael & Daniel Dempsey).

DRR was demerged and listed in October 2020 with DRR shares offered to existing ILU holders, including Sandon Capital.  ILU remains a 20% owner of DRR.

Sandon Capital increased it’s stake to 6.1%.

OTH announced that the Macquarie Group consortium had revised it’s non-binding, conditional proposal to $0.85/share from $0.755/share.

OTH announced that it had entered in to a scheme implementation deed with the Macquarie Group consortium.  The deed provides for the acquisition of OTH by the consortium through a scheme of arrangement for cash consideration of $0.85 per OTH share. We are not as pleased as one might expect with this proposal, as in the 6 months since the proposal first came to light, we believe there has been significant improvement in the value of OTH following the sale of the loss-making consumer online division.  We will consider our position in respect of the scheme proposal closer to the time of the meeting.  In the meantime, we have increased Sandon Capital’s holding in OTH.

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