AusSuper, UniSuper write big cheques for Tabcorp stake
Industry funds AustralianSuper and UniSuper have served up another timely reminder about where the power is headed in equity capital markets.
Industry funds AustralianSuper and UniSuper have served up another timely reminder about where the power is headed in equity capital markets.
Street Talk understands the two superannuation giants, which together oversee more than $120 billion in retirement savings, bought the bulk of a $550 million parcel of Tabcorp shares that went under the hammer after market on Thursday.
As Street Talk revealed, UBS's equities desk was seeking buyers at $4.72 a share or a skinny 0.8 per cent discount to Tabcorp's closing price, clearing out a position that was held to cover an equity swap.
But it was no normal block trade. There was no Bloomberg blast of terms to fund managerss and few frantic calls to dealing desks.
The apparent calm at broker UBS had fund managers suspecting the bulk of the trade went to one or more deep-pocketed investor.
And fingers were quickly pointing towards AustralianSuper and UniSuper.
​UniSuper has form picking up large blocks, and wrote a $700 million-odd cheque to take a chunk of Woodside Petroleum shares when Royal Dutch Shell sold in November. And AustralianSuper, formerly one of the biggest mandate writers in the market, is known to be taking money in-house.
It was a curious trade on a number of levels, most notably because it was triggered by Tabcorp's decision to cut its exposure to its own shares.
Tabcorp set up the swap in November 2016 to take an economic interest in takeover target Tatts Group.
