Senex Energy Limited (SXY):
US private equity-backed Senex Energy has won a Queensland government tender to supply gas for the stretched east coast market, committing more than $200 million in a project targeted to start production in 2019.The tender, launched by the state government in February, is part of Queensland's new domestic gas reservation system under which acreage is specifically released for gas supply into the east coast market, rather than for export as LNG. Senex, backed by EIG Global Energy Partners, secured 58 square kilometres of coal seam gas land in the Surat Basin near Miles, which holds an estimated 201 petajoules of gas and is close to existing transportation and production plants. While the tender was competitive, it paid nothing for the acreage, which it expects to yield production of more than 30 terajoules of gas a day.
McGrath Limited (MEA):
Friday is etched in the calendar for shareholders of embattled real estate group McGrath. That day marks the formal end to an escrow period for about 46.3 per cent of the company's total issued capital. More than half of these shares are held by founder and executive director John McGrath. Street Talk understands Wilsons has the mandate for a small group of investors, which include high-profile former agents, who may seek to sell down their holdings in one line. Other brokers are, however, trying to muscle in on the action by drumming up buyers for the group. Activist investor Matthew Donnellan is understood to be one potential acquirer of the stock once it is out of escrow.
Stargroup Limited (STL):
ATM machine operator Stargroup's shares jumped as much as 43.5 per cent to 3.3 cents on Monday, their highest since April 19.The stock posted its biggest intraday percent gain since January last year. The rise came after the company signed a joint venture agreement with DigitalX, a blockchain technology and advisory company, to jointly develop bitcoin ATMs for buying and selling the virtual currency. About 43.1 million shares changed hands, 49.8 times the 30-day average of 865,172 shares. Shares of DigitalX rose as much as 28.2 per cent.
APA Group (APA):
We salute listed natural gas network APA Group for its recent governance reforms. APA is a trust and so is not required to put its remuneration reports to a shareholder vote nor its directors up for election. But since last year, it does so. That doesn't mean Chairman Len Bleasel always lives and breathes the Australian Shareholders' Association operating manual. Just look at his board. APA was spun out of AGL in 2000, where Bleasel was chief executive until 2001. Indeed Bleasel started his career at AGL back in 1958, 59 years ago, when the gaslight company sent sooty children around lighting lamp posts. Bleasel is rumoured to be Len Ainsworth's uncle – indeed we hear the latter was named after the former. Anyhow, let's just say that the APA apple hasn't fallen far from the AGL tree. One of Bleasel's successor as CEO of the energy retailer, Michael Fraser, is also on the pipeliner's board. So too is Bleasel's CFO at AGL, John Fletcher. Also at the table is Steve Crane, who serves on the Taronga Conservation Society's board with Bleasel.
Telstra Corporation Limited (TLS):
Telstra is ramping up the pressure on rivals nipping at its heels by offering mobile customers a number of packages to streaming service Foxtel Now free for 12 months. While Telstra is the leader in the $8 billion mobile market, rivals such as Optus and Vodafone have been drastically improving their coverage as well as content and data inclusions in mobile plans, usually at prices lower than Telstra. In the case of TPG Telecom, the David Teoh-run company is planning its launch into the market, after securing spectrum for $1.26 billion, by offering customers six months free when they sign up. Content is a crucial part of the offers telecommunications providers are giving customers, helping make them stickier, or less likely to leave for another provider.
Kelly Partners Group (KPG):
A modern "owner-operator" model and a focus on the small- and medium-sized business segment has seen accounting firm Kelly Partners Group post a jump in underlying profit in its debut result as a listed firm. Kelly Partners Group, which owns Kelly + Partners, posted a 15 per cent rise in underlying profit to $3.4 million for the year ended June 30. The underlying pro forma profit, which excludes non-recurring items and amortisation and is attributable to shareholders, was slightly above the prospectus forecast. The group swung to a statutory $2.8 million loss from a $2 million profit the previous year due to non-recurring items including the $1.7 million initial public offering costs, a $453,500 bonus share issue to employees and $1.7 million in business acquisition and restructuring costs.Shares in the firm, which listed on June 21, closed down 3.5¢ at $1.42 on Tuesday. They remain more than 40 per cent above their $1 issue price and the group has a market capitalisation of more than $66 million.
Programmed Maintenance Services Limited (PRG):
Programmed Maintenance Services' managing director Chris Sutherland will receive a $1.43 million retention payment if the company's $778 million takeover by Japan’s Persol group goes ahead. Perth-based Programmed, which provides a broad range of staffing, maintenance and facility management services, has disclosed in its scheme booklet that 49 people in its senior management team will receive retention payments. The payments are being made to "minimise any disruption" to Programmed's business after the takeover, the booklet said.
MG Unit Trust (MGC):
A fortnight ago beleaguered dairy processor Murray Goulburn said it had mandated its adviser, Deutsche Bank, to seek fulsome details from potential bidders for all or some of its assets. Street Talk understands several parties have signed confidentiality agreements as Deutsche looks to find possible jointventure options right through to a straight takeover. Sources said Bega Cheese & Butter and Parmalat are keen to consider the sale documents while Fonterra and Saputo could also show interest. They all, however, face a massive hurdle. Murray Goulburn may be in financial strife thanks to a disastrous decision last year to retrospectively cut milk prices to farmers - milk supply is now down 40 per cent since 2016 for what is a volume critical business - but that does not necessarily mean a transaction will be easy.
Inghams Group Limited (ING):
Detractors of Ingham's – one of the most scrutinised floats of 2016 – don't pull their punches. As shares in the country's largest chicken producer hit fresh records, it's a gutsy call. Ingham's, valued at $1.3 billion by the share market, has been among the market's best performing IPOs, and in addition to TPG, which owns 47 per cent of the group and no longer has its stake in escrow, its share register also includes Australian Super, Mondrian Investments and Macquarie Investment Management .
AGL Energy Limited (AGL):
The hard work for heavyweight local and offshore players vying for AGL Energy's smart meter unit begins this week. Street Talk understands the auction is at the pointy end with the final stage getting under way this week. Management meetings will follow soon after with binding offers due in mid-to-late October. As revealed by this column, those left in the race include NSW electricity distributor Ausgrid, Macquarie Group, KKR & Co's Calvin Capital and Metrix from New Zealand. Metrix is a unit of listed group Mercury NZ Limited (formerly Mighty River Power).
(Source: AIMS)
Latest comments