Freedom Bidco values Strata at AUD 27.1 million in all-cash proposal

Freedom Bidco Proposes Cash Exit at Last Traded Price

Freedom Bidco, Inc., a Canadian special purpose vehicle, has put forward a cash offer to acquire all outstanding shares of Strata Investment Holdings PLC (ASX:SRT) at A$0.16 per share. This price matches the last traded price before Strata's shares were suspended on the ASX in August 2024 and values the company at approximately AUD 27.1 million. The offer represents full liquidity for shareholders who have been locked out of the market for nearly two years and face an imminent delisting.

Strata’s Shares Suspended and Facing Delisting

Strata’s shares have been suspended from trading on the ASX since 26 August 2024, following a failed all-share merger with SCP. With the ASX’s policy to delist entities suspended for two continuous years, Strata is expected to be removed from the official list around 27 August 2026. Freedom Bidco warns that post-delisting, shareholders will be left holding shares in an unlisted, largely unregulated company with no practical exit route and diminished shareholder protections.

Offer Includes Premium Over Recent Transaction Price

The proposed offer price of A$0.16 per share is a 23% premium to the most recent significant off-market trade at A$0.13 per share conducted by SCP, which holds 14 million shares (8.26% of Strata’s issued capital). Freedom Bidco highlights this transaction as the only meaningful price discovery since suspension, underscoring the illiquidity and uncertainty surrounding Strata’s shares.

High Costs and Portfolio Decline Undermine Value

Freedom Bidco critiques Strata’s operational track record, noting that over the 2017–2025 period, the company incurred approximately £27.2 million in general and administrative costs against an increase of only £9.2 million in its equity portfolio value. The equity portfolio peaked at £32 million in 2021 but has since declined by nearly 59% to £13.3 million by end-2025. Strata’s annual G&A expenses average 22.5% of net tangible assets, far exceeding the 3.9% peer average, raising questions about management efficiency and cost structure.

Freedom Bidco’s Post-Acquisition Plans

Should the offer succeed, Freedom Bidco intends to conduct a strategic review focusing on governance, operational costs, and board restructuring. The current Strata board is expected to resign, and Freedom Bidco plans to appoint a more independent board with stronger oversight. The review will also assess the viability of Strata’s investment strategy, particularly its exposure to illiquid small-cap equities and royalty interests, which Freedom Bidco views as overvalued on Strata’s books.

Conditions and Next Steps

The offer is subject to a minimum acceptance condition of 90% of voting rights, regulatory approvals, and no material adverse changes to Strata’s business. Freedom Bidco has secured an irrevocable undertaking from SCP to accept the offer for its 8.26% stake. The formal offer document is expected to be dispatched within 28 days, with the offer anticipated to close in the second half of 2026. If successful, Freedom Bidco plans to seek Strata’s removal from the ASX and may compulsorily acquire remaining shares under UK law.