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27 Aug

FY18 Review

I am pleased to provide our FY18 year-end round up, after another busy year at SLM.

SLM is now in its 20th year following our establishment in 1999, originally as Strategic Legal Management. Since the very early days, we have broadened our service offering significantly, and today our business is focussed on 3 key areas:

• M&A and transaction advisory – advising companies on mergers and acquisitions, business sales, IPOs , public company takeovers and schemes of arrangements, restructurings and strategic reviews

• Valuations and expert reports – independent valuations of businesses and securities (for various purposes), independent fairness reports and financial expert reports for litigation matters

• Capital raisings – originating high quality investment opportunities for our expanding sophisticated investor network.

We have been active in each of these areas over the past year. Public company transactions on which we advised included the sale of over a hundred KFC company-owned stores for YUM Brands, the recapitalisation of toy distributor Funtastic Limited, and the restructuring of paper merchant Spicers Limited’s complex capital structure.

Our valuation practice has also grown considerably, and we are today preparing independent valuation reports for an increasing number of publicly listed and private companies.  Our capability in this area has been significantly bolstered by the addition of Shakeel Mohammed to the team. Shakeel joins us after 9 years at Grant Samuel, and was recently promoted to Director at SLM.

During the past year we originated and raised capital for several high quality investment opportunities from our investor network. These included unlisted property funds (Elanor Commercial Property Fund, Belconnen Markets Syndicate, Barwon Healthcare Property Fund and Arrow Primary Infrastructure Fund), emerging equity fund managers (Capital H Inception Fund, DMX Capital Partners and Millex Ethical Fund), and early stage fintech ventures (Verifier and Rounded). There is strong interest from our growing investor network for opportunities which offer attractive risk-adjusted returns across a range of asset classes and sectors, and we continue to seek out and evaluate a pipeline of these opportunities.

The outlook in Australia remain favourable for business and investment, and we are optimistic about the year ahead.

Thank you to our clients, investors and referral partners for your support during the past year, and we look forward to working together and serving your future needs.

For further information, please contact Barry Lewin on barry.lewin@slmcorporate.com.au or +61 419 302 493.

30 Jul

Appointment of Shakeel Mohammed as a Director, and our growing Valuation Services

I am delighted to congratulate Shakeel Mohammed on becoming a Director at SLM Corporate.

Shakeel joined us as a Senior Manager early last year, after 9 years at Grant Samuel, where he worked extensively with a broad range of ASX listed and unlisted companies on corporate (M&A) transactions and Independent Expert reports. During this period Shakeel developed financial and valuation models on companies and projects, reviewed and analysed client financial models, budgets, forecasts and management reports.

Shakeel has expanded our capabilities significantly in these areas and joins Kuo ning Ho, Eugene Tong and me as Directors at SLM.

Over the past year we have completed a large and growing number of independent valuations for existing and new clients. Some of our diverse valuation assignments have included:
• Valuation review for the proposed acquisition of an offshore supermarket chain for the private acquirer
• Valuation of a high end overseas fashion retail chain for the private acquirer
• Valuation for impairment testing of a dairy packaging and distribution business for an ASX listed acquirer
• Valuation of the shares in a financial services company for the private vendor
• Valuation of the shares in a local bakery business for the private vendor
• Valuation of a workplace health consulting business for the private acquirer
• Valuation of private ophthalmology group for a private vendor
• Valuation of a communications service provider for the private vendor
• Valuation for impairment testing of 3 investment services businesses for an ASX listed acquirer
• Valuation of an Asian specialty distribution business for an ASX listed vendor
• Valuation for an ASX listed company on the sale to a related party of a consultancy providing services to pharmaceutical companies
• Valuation report, merger of ASX co with international water purification company
• Litigation expert valuation report (commercial) for a car park owner and manager
• Litigation expert valuation report (matrimonial), significant listed company equity interests
• Valuation of the non-voting shares in an online ordering business, for the acquiror
• Valuation of escrow shares and cash rights, sale of automotive repairs business
• Valuation of intellectual property, licenses and trademarks, private dairy vendor
• Valuation of a privately held chain of health clubs
• Valuation for impairment testing of intangible assets in biotechnology relating to respiratory technology
• Valuation for ASX listed biotech, for demerger transaction
• Valuation review, shareholder dispute private real estate rent roll
In addition, during the year we also valued performance rights, options (listed and unlisted), convertible notes and share based payments for ASX listed companies in a variety of sectors including Exploration, Mining, Biotech, Industrial, Agricultural, Dairy, Technology, Financial.

Established in 1999, SLM – www.slmcorporate.com.au – provides a range of financial and strategic advisory services.

The firm undertakes three broad areas of work:
• Transaction advice, including mergers, acquisitions, sales and capital raisings for both listed and privately owned companies;
• Expert reports (valuations, economic consulting, strategy, litigation, economic assessments, reward structuring and remuneration benchmarking);
• Originating investment opportunities for our network

For further information, please contact Barry Lewin on +61 419 302493 or barry.lewin@slmcorporate.com.au

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

 

08 Aug

SLM advises on the historic Groote Eylandt Royalty Agreement

In Uncategorized by SLM / August 8, 2016 / 0 Comments

In 2006 the Anindilyakwa Land Council (ALC) on behalf of the Traditional Owners entered into a mining agreement with Groote Eylandt Mining Company (GEMCO) owned by South32 and Anglo American respectively.

SLM Corporate was engaged by ALC in mid-2015 and advised throughout the negotiations for a new royalty agreement covering existing leases and an extension of the mine life.

The ALC and GEMCO reached a historic agreement on 28 June 2016, which will provide the ALC with greater surety of economic payments, and help to extend the mine life of GEMCO beyond 2027, providing important benefits for Traditional Owners and future generations at Groote Eylandt. .

SLM is proud to have provided economic advice to ALC throughout this process.

For further information, please contact Kuo ning Ho (Director) on 03 9244 9644.

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