Dear Fellow Shareholder​​​​,

I am writing to update you on WAM Capital Limited’s (ASX: WAM) takeover offer for amaysim Australia Limited (ASX: AYS), which opened on Tuesday 2 February 2021 and has pleasingly shown significant early participation.

WAM Capital shares issued to amaysim shareholders under the offer allow existing WAM Capital shareholders to benefit from the accretive issuance of shares at a premium to the underlying net tangible assets (NTA) and represent an annualised return on our investment of approximately 12%. As a cash box, amaysim will make a cash distribution to its shareholders, including a significant fully franked component to the distribution of approximately $80.7 million, that is expected to be paid in April 2021.

In the three days since the offer opened, 27.4% of the amaysim share register has accepted the offer which will result in approximately 31.4 million new WAM Capital shares being issued. We receive the acceptance notices each morning and we have noticed many WAM Capital supporters among the offer participants. We have also noticed a number of participants who are potentially unlikely to remain long-term WAM Capital shareholders, such as industry funds and arbitragers. As a result, there may be selling over the coming weeks as the new shares are issued next week. This selling may create, depending on their own circumstances, opportunities for long-term WAM Capital shareholders.

WAM Capital is currently trading cum the fully franked FY2021 interim dividend of 7.75 per share, which represents an annualised yield of 7.0% on yesterday’s closing share price of $2.23 per share. The interim dividend will be paid on 7 June 2021 and will trade ex on 31 May 2021. The profits reserve was 20 cents per share as at 31 December 2021.

If you have any questions regarding this proposed transaction, please reply to this email or call me on (02) 9247 6755 or 0412 242 712, Chief Financial Officer Jesse Hamilton on 0401 944 807, Head of Corporate Affairs James McNamara on 0416 734 080, or Head of Operations Martyn McCathie on 0433 312 603.

Kind regards,

Geoff Wilson AO

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