Australia and New Zealand Banking Group (ANZ) & National Australian Bank Limited (NAB):
ANZ Banking Group is not able to charge mortgage borrowers with interest-only loans a different price to those paying back interest and principal, which could limit the bank’s ability to respond to tougher lending rules being considered by financial regulators. Without the ability to price interest only loans at a higher rate, ANZ could struggle to rein in such lending via higher prices if regulators call for it to be curtailed, potentially forgoing hundreds of millions of dollars of revenue. ANZ has $91 billion of housing loans where borrowers are repaying interest only, representing 37 per cent of ANZ’s total housing loans. National Australia Bank’s increases in variable interest rates last week did not differentiate between interest only and principal and interest borrowers, but NAB is able to do so. In July 2015, it lifted the rates on interest-only home loans by 29 basis points.
Bellamy’s Australia (BAL) & Fonterra (FSF):
The world’s largest dairy exporter, Fonterra Co-operative, will seek strategic alliances rather than pursue growth via acquisition, confirming it is not interested in buying its customer, troubled infant formula maker Bellamy’s Australia. Fonterra came under fire in 2016 for following rival Murray Goulburn in significantly cutting its farmgate milk price for the last two months of the season to as low $1.91 per kg/MS, leaving farmers in crisis, with some culling herds. In October, Fonterra Australia increased its farmgate milk price from the opening price for the season of $4.75 per kg/MS to $5.20. Mr Paravicini said he remained confident in the company’s forecast for the farmgate milk price. ‘‘This year we see this much more in alignment ... and we see it very stable $5.20,’’ he said.
BHP Billiton (BHP):
The Roper River mine in the Northern Territory was owned by Sherwin Iron when iron ore prices dipped below $US90 per tonne in 2014 and sent the company into administration and ultimately liquidation. Roper River was originally discovered by BHP Billiton in the 1950s, and is located close to the Roper Bar iron ore mine, which is also in the hands of receivers after the collapse of Western Desert Resources.The price for iron ore with 62 per cent iron content has averaged $US78 per tonne over the past six months and $US86 per tonne since January 1. The bulk commodity was fetching $US87.59 per tonne on Wednesday, which is much higher than most pundits had expected. It is understood the iron ore at Roper River has iron content between 48 per cent and 58 per cent, suggesting any sales from the mine will include a sizeable discount to the benchmark index price.
Downer EDI (DOW) & Spotless Group (SPO):
Downer EDI chief executive Grant Fenn is paying one of the biggest premiums seen in Australian takeovers in the last five years – and for a company most agree is struggling. Data compiled by Dealogic for The Australian Financial Review shows Downer’s $1.2 billion takeover offer for Spotless Group, which was pitched at a premium of 58.6 per cent to Spotless’ previous closing share price, is the second-biggest premium offered for a deal over $500 million since 2012.Only the bid for Broadspectrum by Spanish group Ferrovial – ironically another deal involving a contractor – had a bigger premium, at 76.5 per cent to the price the day before the offer.Downer’s 65 per cent compares poorly to similar deals.Boral saw 91 per cent institutional take-up at its rights issue late last year. APN News & Media had 99 per cent institutional takeup when it raised to buy Adshel in October, while JB Hi-Fi had 94 per cent take-up when funding its purchase of The Good Guys. Other deals in recent years include Evolution Mining (86 per cent institutional take-up), Vocus (97 per cent), Transurban (90 per cent), Treasury Wine (89 per cent), APA Group (93 per cent) and even Slater & Gordon (80 per cent.
Harvey Norman Holding Limited (HVN):
Harvey has been complaining about a ‘‘conspiracy’’ of short-sellers and journalists for some months now and has long been a critic of short-selling in general. Former Harvey Norman CFO John Skippen used a similar defence at Slater & Gordon, which he chairs.But the fact remains that Harvey Norman’s system for accounting for these franchisee businesses – and the losses they make, and the $1.15 billion in loans they receive – is extremely complex and confusing. Harvey Norman shares are down 12.6 per cent since the start of last week.
JB Hi-fi Limited(JBH):
At least 23 The Good Guys retail stores across Australia are set to come onto the market with potential buyers expecting the portfolio could sell for $130 million. The listed JB Hi-Fi owns the operations of 103 The Good Guys stores after buying out the business last year for $870 million. Founded in 1952 and originally operating as Mighty Muirs, The Good Guys generated $2.09 billion in revenue in the 12 months to June last year before JB Hi-Fi came in over the top.
Lendlease (LLC):
Property giant Lendlease has approval to develop a $550 million office tower, the commercial centrepiece of its expansive Melbourne Quarter project in Melbourne’s Docklands.With the approval, Lendlease will be pitching harder for some of the big tenant requirements now in the Melbourne market, where vacancy is tightening and rents are rising. The first office tower is already in construction and will be bought out as a $250 million investment for Lendlease’s Australian Prime Property Fund platform.
Telstra (TLS):
The commission recommended a new right for consumers to own the data that governments and corporations collect about them in a draft report in November. But National Australia Bank, ANZ Banking Group, Telstra, Google and Uber warned the government in submissions that a widely defined consumer right to data could require them to hand over commercially sensitive customer insights to rivals.
（Source: AIMS）
Latest comments