Australia And New Zealand Banking Group Limited (ANZ):
AIA Group, Metlife and Zurich are reported to be the remaining bidders. Questions are being raised about the $4.5 billion price tag ANZ has put on its Australian wealth business, as bidders enter the final stage of a sale process that began in April. CLSA’s veteran bank analyst Brian Johnson poured cold water on the valuation, suggesting a figure of $3.5 billion was closer to the mark given the scale of the business. ANZ Banking Group appears to be moving closer to selling minority equity stakes in two Asian banks, with its shareholding in Hong Kong-listed Bank of Tianjin being designated as an asset ‘‘available for sale’’ and reports suggesting a buyer has been lined up for its stake in AMMB Holdings Bhd (AmBank). A report by Reuters, published from Kuala Lumpur on Wednesday, cited sources saying ANZ had ‘‘agreed in principle’’ with Malaysian retirement fund KWAP to sell its 23.8 per cent stake in AmBank at a price equivalent to one times book value. ANZ valued the stake at almost $1.2 billion in its 2016 annual report. It is understood no deal is imminent and any sale would likely follow the merger of AmBank with RHB Bank Bhd, Malaysia’s fourth-largest bank (AmBank is the sixth-largest).
Boral Limited (BLD):
The Construction, Forestry, Mining and Energy Union is seeking court injunctions to stop listed building materials supplier Boral sacking the workforce of its NSW subsidiary, a move it’s considering to avoid getting blacklisted from billion-dollar government-funded projects. The Construction, Forestry, Mining and Energy Union is seeking court injunctions to stop listed building materials supplier Boral sacking the workforce of its NSW subsidiary, a move it’s considering to avoid getting blacklisted from billion-dollar government-funded projects. Federal Court Justice Stephen Burley will hear the union’s urgent application on Friday morning after Boral’s concrete placement company De Martin & Gasparini told its 100 employees last week it was considering retrenching them since they voted down changes to make their enterprise agreement compliant with the federal building code.
Cochlear Limited (COH):
Pioneering hearing implant maker Cochlear will make its first foray into offshore manufacturing by building a $50 million plant in Chengdu, capital of China’s Sichuan province. The new plant will shore up its position in fiercely competitive Chinese government tenders, eventually expand Cochlear’s global manufacturing capacity by about 50 per cent and take the pressure off the Australian plants when they reach their full capacity in seven or eight years.
Incitec Pivot Limited (IPL):
Incitec Pivot is closing in on the appointment of a new chief executive to replace its long-serving Valiant driving boss James Fazzino. Fazzino is preparing to leave the fertiliser and explosives giant after 14 years with the company. He announced plans in February to step down, triggering a search for his replacement. It is believed the board initially favoured an external candidate but attention is turning to internal frontrunner Simon Atkinson. There was concern an external candidate would shake things up too much at a time when the company is running smoothly. Shareholders want management to focus on the company’s existing assets, such as its new ammonia plant in the US state of Louisiana.
Northern Star Resources Ltd (NST):
The $250 million that Northern Star Resources has invested in growing its mine life and capacity is finally reaping rewards, executive chairman Bill Beament says, as the goldminer forecasts another jump in production in 2018. Over the past three years the Perth based miner has spent $180 million on exploration around its assets to increase its gold resources and about $70 million capital on expanding its infrastructure to allow an increase in production. Mr Beament said the company’s June quarter report, released yesterday, was the first set of results that reflected the ‘‘returns we will generate from that substantial investment’’.
Westpac Banking Corporation (WBC):
Shares and the Australian dollar roared higher on Thursday after dovish comments by US Federal Reserve chair Janet Yellen sparked a global risk-on sentiment. Commonwealth Bank, ANZ and National Australia Bank all closed the day around 0.5 per cent higher, while Westpac enjoyed a 1.9 per cent bump thanks to a broker upgrade.
Whitehaven Coal Limited (WHC):
Whitehaven Coal managing director Paul Flynn says major customers are not ready to abandon the quarterly contract system for pricing coking coal, despite recent volatility in coal markets and speculation that a change is imminent. The demise of the quarterly pricing system has been debated in recent months after one of the biggest buyers of Australian coking coal, Nippon Steel, revealed in May that it would trial buying coking coal at prices linked to the daily market or ‘‘spot’’ price, after losing faith in the traditional system where coal prices were agreed with miners on a quarterly basis.
(Source: AIMS)
AIA Group, Metlife and Zurich are reported to be the remaining bidders. Questions are being raised about the $4.5 billion price tag ANZ has put on its Australian wealth business, as bidders enter the final stage of a sale process that began in April. CLSA’s veteran bank analyst Brian Johnson poured cold water on the valuation, suggesting a figure of $3.5 billion was closer to the mark given the scale of the business. ANZ Banking Group appears to be moving closer to selling minority equity stakes in two Asian banks, with its shareholding in Hong Kong-listed Bank of Tianjin being designated as an asset ‘‘available for sale’’ and reports suggesting a buyer has been lined up for its stake in AMMB Holdings Bhd (AmBank). A report by Reuters, published from Kuala Lumpur on Wednesday, cited sources saying ANZ had ‘‘agreed in principle’’ with Malaysian retirement fund KWAP to sell its 23.8 per cent stake in AmBank at a price equivalent to one times book value. ANZ valued the stake at almost $1.2 billion in its 2016 annual report. It is understood no deal is imminent and any sale would likely follow the merger of AmBank with RHB Bank Bhd, Malaysia’s fourth-largest bank (AmBank is the sixth-largest).
Boral Limited (BLD):
The Construction, Forestry, Mining and Energy Union is seeking court injunctions to stop listed building materials supplier Boral sacking the workforce of its NSW subsidiary, a move it’s considering to avoid getting blacklisted from billion-dollar government-funded projects. The Construction, Forestry, Mining and Energy Union is seeking court injunctions to stop listed building materials supplier Boral sacking the workforce of its NSW subsidiary, a move it’s considering to avoid getting blacklisted from billion-dollar government-funded projects. Federal Court Justice Stephen Burley will hear the union’s urgent application on Friday morning after Boral’s concrete placement company De Martin & Gasparini told its 100 employees last week it was considering retrenching them since they voted down changes to make their enterprise agreement compliant with the federal building code.
Cochlear Limited (COH):
Pioneering hearing implant maker Cochlear will make its first foray into offshore manufacturing by building a $50 million plant in Chengdu, capital of China’s Sichuan province. The new plant will shore up its position in fiercely competitive Chinese government tenders, eventually expand Cochlear’s global manufacturing capacity by about 50 per cent and take the pressure off the Australian plants when they reach their full capacity in seven or eight years.
Incitec Pivot Limited (IPL):
Incitec Pivot is closing in on the appointment of a new chief executive to replace its long-serving Valiant driving boss James Fazzino. Fazzino is preparing to leave the fertiliser and explosives giant after 14 years with the company. He announced plans in February to step down, triggering a search for his replacement. It is believed the board initially favoured an external candidate but attention is turning to internal frontrunner Simon Atkinson. There was concern an external candidate would shake things up too much at a time when the company is running smoothly. Shareholders want management to focus on the company’s existing assets, such as its new ammonia plant in the US state of Louisiana.
Northern Star Resources Ltd (NST):
The $250 million that Northern Star Resources has invested in growing its mine life and capacity is finally reaping rewards, executive chairman Bill Beament says, as the goldminer forecasts another jump in production in 2018. Over the past three years the Perth based miner has spent $180 million on exploration around its assets to increase its gold resources and about $70 million capital on expanding its infrastructure to allow an increase in production. Mr Beament said the company’s June quarter report, released yesterday, was the first set of results that reflected the ‘‘returns we will generate from that substantial investment’’.
Westpac Banking Corporation (WBC):
Shares and the Australian dollar roared higher on Thursday after dovish comments by US Federal Reserve chair Janet Yellen sparked a global risk-on sentiment. Commonwealth Bank, ANZ and National Australia Bank all closed the day around 0.5 per cent higher, while Westpac enjoyed a 1.9 per cent bump thanks to a broker upgrade.
Whitehaven Coal Limited (WHC):
Whitehaven Coal managing director Paul Flynn says major customers are not ready to abandon the quarterly contract system for pricing coking coal, despite recent volatility in coal markets and speculation that a change is imminent. The demise of the quarterly pricing system has been debated in recent months after one of the biggest buyers of Australian coking coal, Nippon Steel, revealed in May that it would trial buying coking coal at prices linked to the daily market or ‘‘spot’’ price, after losing faith in the traditional system where coal prices were agreed with miners on a quarterly basis.
(Source: AIMS)
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