After four weeks of due diligence, Reliance Worldwide Corp (RWC AU), a manufacturer of plumbing components, has now entered into a Scheme Implementation Deed (SID) with Brookfield.
Terms are A$4.75/share (or US$3.638/share), in cash, a 31.5% premium to undisturbed, unchanged from the Process Deed. Terms are not final.
The binding SID provides Reliance with a “go shop” provision for 30 days. After AustralianSuper bumped its holding, twice, post-deal-announcement, that might be worthwhile pursuing.
The Trade:
Trading wide at a 9.7%/28% gross/annualised spread, assuming late January 2027 completion.
AustralianSuper is the elephant in the room. And they have stonewalled Brookfield’s acquisitions in the past.
I’d still get exposure here (not aggressively), and on weakness.