Which major shareholders do you know have confirmed they're in this for the long stay?
I know at least one Major shareholder was, "surprised and disappointed" by what he had come to understand about Big's operations.
Take from AFR article "Eight Investment Partners Comes Under Aurora Attack"
Aurora is attempting to replace the board of 8IP who control AEC (Of which Aurora hold 20%) due to several issues, one of which is the groups significant holding in BIG.
"The group also called out 8IP's position in suspended technology stock Big Un, which had been on of the fund's larger positions, citing concerns about the private exposure to the company of 8IP principal and chief investment officer Kerry Series."
"Eight Investment Partners was the largest institutional investor in Big Un Limited after it purchased 1 million out of a 3 million-share institutional placement, as "early backers" in the business sold down their stake in June 2017."
Mr Kerry Series is quoted as saying, "I was not aware of the structure of the financing arrangements with Finstro and feel as though I was misled on this."
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You can read the relevant part of the AFR article here:
In a statement to the ASX, Aurora which controls just under 20 per cent of 8EC, the $50 million listed investment company managed by 8IP, cited the fund's trading discount relative to its assets and its investment strategy as reasons for the board overhaul.
The group also called out 8IP's position in suspended technology stock Big Un, which had been on of the fund's larger positions, citing concerns about the private exposure to the company of 8IP principal and chief investment officer Kerry Series.
Eight Investment Partners was the largest institutional investor in Big Un Limited after it purchased 1 million out of a 3 million-share institutional placement, as "early backers" in the business sold down their stake in June 2017.
Mr Series also had a private stake in Big Un by virtue of his minority shareholding in Tatmarni, which owns 90 per cent of Intermedia, the media firm that sold two business units to Big Un in 2016.
Mr Series has previously stated the Big Un investment was consistent with its investment mandate and that "all trading in Big Un shares by interests associated with Mr Series were made in accordance with 8IP's staff securities trading policy".
Intermedia and Tatmarni still hold the same number of shares as issued to them by Big Un but Mr Series said Tatmarni did buy and sell 675,000 shares earlier this year prior to
revelations that Big's cash flows were aided by an agreement with Finstro, a subsidiary of Sydney based lender FC Capital.
An inspection of the register shows Tatmarni held 2.4 million shares in escrow while the balance of unrestricted shares declined from 782,343 shares on February 7 to 675,000 on February 15.
Meanwhile, Eight Investment Partners did reduce its stake in Big Un from 1 million shares to 513,000 in response to the company's admission of its financing tie-up with FC Capital, with the sales generating "proceeds in excess of its total original investment".
Mr Series told
The Australian Financial Review he was "surprised and disappointed by what I have come to understand about Big's operations.
"I was not aware of the structure of the financing arrangements with Finstro and feel as though I was misled on this."
He said the investment firm "will look at all options available to realise value for investors," as the fund held 2.5 per cent of its portfolio in Big Un shares. The stock is currently suspended from trading.
The rest of the article, which is a good read, is available here:
http://www.afr.com/markets/eight-investment-partners-comes-under-aurora-attack-20180318-h0xmmi
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