As part of its A$4.75/share Scheme Offer for Reliance Worldwide Corp (RWC AU), a manufacturer of plumbing components, Brookfield afforded Reliance with a “go shop” provision for 30 days.
That provision has concluded, and as announced on the 19th October, no alternative proposal emerged. Dispatch of the Scheme Booklet is expected early November, and a Scheme Meeting early-to-mid December.
AustralianSuper has now thrice bumped its holding, post-deal-announcement, the latest after the “go shop” expiry. My bet is they are supportive. The market is saying otherwise.
The Trade:
Trading super wide at a 9.4%/60% gross/annualised spread, assuming late Dec 2026 completion.
A bet here is a bet on AusSuper backing terms.
I’d be getting exposure here (not aggressively), and on weakness.
Downside to undisturbed is 16%.