All posts in General News

28 May

SLM Corporate welcomes Shakeel Mohammed to the team, strengthening our growing valuation practice

In Announcements,General News,Team by SLM / May 28, 2017 / 0 Comments

We are very pleased to welcome Shakeel Mohammed to SLM Corporate, in the role of Manager.  In his previous role, Shakeel spent 9 years with Grant Samuel Associates, where he worked extensively with a broad range of ASX listed and unlisted companies on corporate (M&A) transactions and Independent Expert Reports.

SLM has seen a significant pick up in activity in our valuation practice, and Shakeel will bring valuable additional skills and experience to these activities.

We routinely value listed and private businesses for a range of purposes, executive and director share options and performance rights, and we have undertaken Independent Expert Reports in a variety of transactions.  Our experience covers an array of sectors.

For further information, please contact SLM Managing Director, Barry Lewin on 03 9244 9644 (office) or 041 9302493 (mobile).

 

 

14 May

SLM Managing Director Barry Lewin appointed Chairman of Praemium Limited after a lengthy proxy battle

In Announcements,General News by SLM / May 14, 2017 / 0 Comments

A group of activist shareholders including Paradice Investment Management and Australian Ethical have succeeded in their efforts to roll the board of embattled ASX-listed platform Praemium, paving the way for sacked CEO Michael Ohanessian to be reinstated in the top job.

At an extraordinary meeting in Melbourne on Friday, shareholders voted with the requisitioning shareholders to remove chairman Greg Camm and three other directors, replacing them with Barry Lewin as chairman and Stuart Robertson and Daniel Lipshut as new directors.

The move to oust the entire board caps off a turbulent four months for $160 million Praemium which included Mr Ohanessian being unceremoniously dumped following a heated disagreement with Mr Camm over the direction the company.

After Friday’s meeting, which saw around three quarter of the shareholder base vote 53 per cent to 46 per cent in favour of the board being removed, Mr Ohanessian told The Australian Financial Review that shareholders had had a chance to have their say.

“As a shareholder in Praemium myself, I am confident that this renewed board will act in the best interests of the company and its shareholders,” he said.

“Over the past couple of months, I have been encouraged by the many messages of support I have received from shareholders, clients and peers showing enormous respect for the Praemium team and the company’s strategic direction.”

Mr Lewin said the new board will now move to reinstate Mr Ohanessian. This leaves the fate of current CEO Robert De Luca up in the air.

The refreshed board maintains that he is the right person for the job despite Praemium’s assertion that the company’s share price had underperformed recently.

Mr Lewin told the Financial Review this week that be believed Mr Ohanessian had been “disrespectfully” fired.

“My fellow new directors and I look forward to a functional and effective working relationship with Mr Ohanessian and the talented Praemium team as we focus on providing the best service and technology for clients, realising the growth opportunities in front of us, and delivering strong returns for shareholders,” he said.

In the past year, during which Praemium shares hit a high of 53¢ and low of 28¢, the stock gained 16 per cent, which puts it on par with Hub24 and ahead of OneVue (down 24 per cent) and Managed Account (down 23 per cent).

While not commenting on any specifics to do with Praemium, KPMG partner Stephen Walmsley said that ructions at the board level can cause shareholders to get skittish, but “it is well established that one of a board’s key responsibilities is to appoint, and remove, the chief executive officer”.

In an earlier interview with the Financial Review, Mr Ohanessian said that he hoped that the the start of 2017 would soon be seen a “nightmare” that would live only in the company’s past.
On Friday, he was readying to look to the future.

“I would like to take the opportunity to thank Praemium’s staff for their continued focus during a period of uncertainty. At the right time, I am looking forward to reconnecting with the team and pushing forward with our plans,” Mr Ohanessian said.

In April, the former Praemium board took the unusual step of issuing a 23-page notice of meeting which painted Mr Ohanessian as routinely difficult and includes details of the back room stoush where Mr Camm accused Mr Ohanessian of “berating” him.

But on Friday, the board accepted the vote and reinforced the strength of the company.

“The shareholders have spoken and a new board is appointed. Praemium is a good business with very good people and the outgoing board give Mr Lewin and his colleagues our best wishes in governing the company,” outgoing Chairman Mr Camm said.

Michael Smolders from The Abercrombie group, which joined activist shareholders Paradice, Australian Ethical as well as Mr Ohanessian and his wife Candace (as shareholders with 15 million shares) said that he was pleased Praemium shareholders accepted the resolutions.

“We have full confidence that the newly elected independent board will govern in the best interests of all shareholders. Praemium is now able to move forward positively and focus on creating long term shareholder value,” he said.

A board meeting will be convened soon where the new directors will discuss Mr Ohanessian’s re-appointment. (Source: Australian Financial Review, 12 May 2017)

31 Aug

Griffiths v Northern Territory of Australia (Timber Creek Compensation Matter)

In General News,Uncategorized by SLM / August 31, 2016 / 0 Comments

Background

SLM recently acted as a financial expert for the Aboriginal parties in the matter of Griffiths v Northern Territory of Australia (“Timber Creek Compensation Matter”). The case involved the economic valuation of Native Title rights and interests principally under the Native Title Act 1993 (Cth) and involved important issues of principle, including the application of well-established rules as to the valuation of compulsorily acquired land and the loss and impairment of traditional rights and interests of Aboriginals in Australia.

On 24 August 2016 the Federal Court ordered the Northern Territory Government to pay $3.3m ($512,000 for the extinguished native title rights, $1,488,261 interest and allowance for solatium of $1,300,000) to Traditional Owners as compensation for the impact of land grants and public works on their native title. This is a landmark decision for Native Title compensation in Australia.

Key Valuation Outcomes

With regard to the valuation of non-exclusive native title rights the presiding justice, Mansfield J, affirmed that:

“the freehold value is an appropriate starting point because s 51A [of the NTA] puts it as the upper limit…[and] [t]o accommodate the fact that they were non-exclusive, clearly some reduction from the freehold value is necessary…in my view, the deduction should not be great in the present circumstances…the appropriate valuation should be 80% of the freehold value.

On the treatment of interest in calculations for compensation, Mansfield J stated that:

“the appropriate interest calculation is simple interest at the rate specified in the Practice Note CM 16.

Mansfield J also asserted that there is insufficient precedent to support the entitlement of compound interest (although the Justice does not preclude the possibility) because there was insufficient commercial activity at the time of act to justify a compounding of returns from investment alternatives and additionally, the Claimants would likely have disbursed the funds for immediate community benefit.

Impact

Media reports suggest that Commonwealth and State Governments could be liable for billions of dollars in native title compensation, since the Timber Creek case covers 23 km2 which is only 0.001% of the 2.3m km2 declared native title land.

About SLM

SLM Corporate is a Melbourne based independent corporate advisory firm. Our clients are shareholders and boards of companies that are publicly listed or privately held, Government and indigenous organisations. We routinely act as a financial expert, and value listed and private businesses, executive and director share options and performance rights, and we have undertaken independent expert reports in a variety of transactions.

For further information please contact:

Barry Lewin

Managing Director

SLM Corporate

Ph: 03 9244 9644 or 0419 302493

Email: barry.lewin@slmcorporate.com.au

www.slmcorporate.com.au

 

20 Apr

SLM Quarter 1 Roundup

In Announcements,General News,Important by SLM / April 20, 2015 / 0 Comments

Quarter 1 has seen continued activity across each of our core services.

Capital raising:

We have raised capital for Dotz, an exciting Israeli venture aimed at capitalising on the technological innovation in the Graphene Quantum Dots market. We also introduced a number of high net worth investors to the Auburn Central Syndicate, a strongly traded sub regional shopping centre in the Sydney metropolitan area managed by ASX listed Elanor Investors Group Limited.

Consulting services:

Our engagements included:
Building financial models for a new hotel development project, a wholesale gemstone business, and an urban infrastructure roll out.
Providing industry and market research and analysis (mining industry related).
Briefed as a financial expert for the purposes of litigation, and preparing expert reports.
Valuations of options and performance rights for several ASX listed companies in diverse sectors, and of medical and legal practices.
Assessment of compensation proposals for Aboriginal clients in respect of proposed iron ore, bauxite and vanadium projects.

We also presented an economic update on key commodities in the Australian resources sector to delegates from a number of native title representative bodies.

Transaction activity:

We have been engaged to pursue or assess proposed acquisitions on behalf of clients in a number of sectors.

New website:

We are very pleased to introduce our new website www.slmcorporate.com.au
Please visit and feel free to provide feedback.

Staff update:

We welcome Jonathan Nurick, who has recently joined us as an analyst. Jonathan will be supporting Kuo ning Ho and Jeremy Sum in the consulting services division.

Please contact me should you require further information on any of our services.

Barry Lewin, Managing Director – 03 9244 9644 (office) or +61 419302493 (mob)

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