Microequities Asset Management Rejects Takeover Bid for QMASTOR (ASX:QML)
Sydney, June 23, 2011 AEST (ABN Newswire) - Largest QMASTOR's (ASX:QML) shareholder Microequities Asset Management has rejected the proposed off market takeover bid for ASX mining software developer QMASTOR Ltd by US based Triple Point Technology Inc.
Chief Investment Officer of the Deep Value Microcap Fund Carlos Gil said "we deem the offer to be highly opportunistic, and believe that the offer price of $0.23 per share is disparaging compared to our appraised value for the business".
The CIO believes this offer would exempt shareholders of the positive outlook facing QMASTOR's business, which owns leading industry acknowledged technology. "QMASTOR's clients are predominately in the booming Coal and Iron Ore mining industries, the company's 1st half operational results were already displaying a strong rebound in both revenue and earnings growth, and we feel very confident about QMASTOR's operational future", he added.
Triple Point Technology Inc has conditioned the takeover on a 90% acceptance. Microequities Asset Management is QMASTOR's largest shareholder with 7.1% of the company.
QMASTOR is a leading technology company providing specialist software and services to the global mining, port, power generation and bulk commodity industries, specifically iron ore and coal. The company has a market cap of $13 million.
In late 2010, QMASTOR acquired Algosys, a Canadian software company with metallurgical accounting software, providing QMASTOR with strong revenue synergies. QMASTOR's 1st half results saw a 59% jump in revenue to $5.6m whilst EBITDA improved to $0.4m. For the full FY10 year, management has guided AU$13-14m in revenue with EBITDA of approximately AU$3m.
Microequities is a specialised asset manager. Established in 2005 as an independent investment research house solely specialised in Microcaps, the company expanded into funds management in early 2009 by launching its flagship Deep Value Microcap Fund. This Fund has provided a +27.79% Compound Annual Return since inception and has a 5 Year 5 Star Morningstar Rating as at 30/09/2015. In 2012, Microequities launched a second open-ended fund, the High Income Value Microcap Fund which has provided a +14.05% Compound Annual Return since inception.