360 Capital Group (TGP); Asia Pacific Data Centre Group (AJD):
360 Capital, led by Tony Pitt, has flagged the prospect of progressing to a full privatisation of Asia Pacific Data Centres if it succeeds in wresting control of its management first. Mr Pitt’s listed funds management platform considerably upped the ante on Thursday with a highly conditional proposal to buy out any APDC investors who want to exit the data centres trust if 360 Capital gains control. A vote on replacing the current management with 360 Capital has been called for July 28 by Mr Pitt’s team.360 Capital is offering $1.80 per unit for investors who want to sell out if Mr Pitt succeeds in taking control of the data centre’s management.
Ansell Limited (ANN):
Ansell is confident of further growth and will spend as much as $US100 million ($126 million) over the next three years as it heads into its condom-free future. The company, which in May sold its sexual wellness division to a Chinese consortium for $US600 million, says it will focus more on business-tobusiness activities and streamlining remaining operations that include protective gloves. Ansell told the ASX on Thursday it plans cost-cutting initiatives and investment in manufacturing technology to continue growth of new product ranges.
Australia and New Zealand Banking Group (ANZ); Commonwealth Bank of Australia (CBA); National Australia Bank Limited (NAB); Westpac Banking Corporation (WBC):
Sentiment about capital management in the banking sector has dramatically shifted from the risk of dilutive equity raisings to the prospect of share buybacks, with analysts pointing to the potential for ANZ Banking Group to be the first bank to return capital to shareholders given its asset sales in Asia allow it to generate equity levels in excess of the prudential regulator’s new benchmark. ‘‘It has been many years since we have seen so many smiling faces on Australian bankers,’’ said UBS analyst Jonathan Mott. ANZ Banking Group, which has the strongest common equity tier 1 (CET1) ratio of the major banks, led the gains, rising 2.9 per cent to close at $30.25. ‘‘Whilst CBA’s starting position on capital is relatively weaker than its peers, its advantages in capital generation are that it has a peer relatively lower payout ratio and a relatively high ROE in its favour,’’ Credit Suisse analysts said. Macquarie analyst Victor German said CBA, Westpac and National Australia Bank are likely to raise the additional equity via discounted dividend reinvestment plans, which allow banks to increase the takeup rate of their DRP and hence raise capital more quickly, although he suggested Westpac may also consider ‘‘a small reduction to its dividend’’. In other news, Commonwealth Bank of Australia has launched a blistering attack on Kate Carnell, the Coalition government’s small business ombudsman, accusing her of ignoring facts, breaching its confidentiality and denying it procedural fairness.
Bellamy’s Australia Limited (BAL):
An upbeat earnings outlook from Bellamy’s Australia helped curtain a share sell-off in the troubled infant formula marketer, which returned to trading on the Australian Securities Exchange following a fortnight hiatus. Shares in Bellamy’s fell more than 12 per cent in early trade but recovered to close down 5 per cent to $6.40.Bellamy’s was plunged into a fresh crisis a fortnight ago when Chinese authorities suspended a key licence for its newly acquired cannery, Camperdown Powder. It has responded to questions from the Chinese regulator in a bid to have the licence reinstated and is hopeful the matter will be resolved by the end of the month.The Tasmanian-based company was forced to allow retail shareholders who participated in a recent $45.5 million entitlement offer to withdraw because it put its shares into a trading halt before the new shares could trade.
Fletcher Building Limited (FBU):
It was a grim day for Fletcher Building investors: after New Zealand’s biggest construction company slashed its full- year earnings guidance for the second time this year, the Kiwi stock exchange announced it was investigating the company’s disclosure. Four months after it lowered expectations for the first time, New Zealand’s biggest builder cut its earnings forecast again, while also announcing its chief executive is leaving. Operating profit for the year ended June 30 is now expected to be $NZ525m, down from previous guidance of as much as $NZ650m and an initial forecast of up to $NZ760m and an initial forecast of up to $NZ760m. Shares in the dual-listed building giant fell 5.8% to %7.05.
(Source: AIMS)
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