Cromwell Property Group (CMW):
Australia’s Cromwell Property Group has launched a roadshow to raise almost $2 billion to back the listing of a European real estate investment trust on Singapore Exchange — the latest marker for local property companies moving offshore. The Cromwell European Real Estate Investment Trust is seeking to raise up to €1.25 billion ($1.86bn) to list in Singapore by the month’s end. The fund would be Singapore’s first euro-denominated real estate trust and faces competition from other vehicles investing in the US. If successful, it would start with a market capitalisation of €1.2bn-€1.25bn when listed on September 28. The fund would own a portfolio of office, logistics and light industrial, and retail assets across Denmark, France, Germany, Italy, The Netherlands and Poland valued at €1.83bn.
GWA Group Limited (GWA):
GWA Group expects the renovations and replacement market to remain "relatively stable" in 2017-18, as it continues to tilt its business further toward the higher value end of the market. The renovations and replacements market is crucial to GWA, which makes about 52 per cent of its revenues from this category through its range of Caroma bathroom basins, baths and toilets, Dorf taps and Clark sinks. The Reserve Bank of Australia says turnover of houses is at its lowest level in almost 25 years, with owners choosing to stay put and renovate rather than shift to a new property. Industry analyst IBISWorld predicts the alternations and additions market will grow by about 8.3 per cent in 2017-18, with kitchen and bathroom renovations adding the most value to a home.
Kidman Resources Limited (KDR):
Shares in Kidman Resources have been placed in a trading halt today ahead of an announcement in relation to a proposed $US110m ($138m) WA Earl Grey lithium deposit joint venture with SQM. Kidman Resources said in an ASX statement today that it expects to make the announcement before trading commences on Wednesday. Last month, SQM chief executive Patricio de Solminihac told investors deal was expected to be completed by September 30, as the company looks to keep up with lithium demand from the electric vehicle and power storage sectors.
Macquarie Group Limited (MQG):
Macquarie Group has given an upbeat assessment of income in its first-half, helped by "stronger performance fees" from its stable of investment funds. The commentary was provided in a presentation by Macquarie's finance chief Patrick Upfold, to be delivered to the CLSA Investor Forum in coming days. "As a result of stronger performance fees now anticipated to be recognised in the first half, the 1H18 result is expected to be up on 1H17 and broadly in line with 2H17," the presentation said. The update to earnings guidance included the usual caveat that it would depend on the completion rate of transactions and September 30 reviews across Macquarie's five business units.
Origin Energy Limited (ORG):
Origin Energy has struck a $250 million deal to buy out a Malaysian partner in a gas project off the south-east coast, simplifying the structure of the asset ahead of the sale of its oil and gas offshoot Lattice Energy and clearing the way for potential expansion of the venture. The deal, under which Lattice will buy a circa 28 per cent stake in the Otway gas project held by Benaris International, is intended to improve the alignment of the venture partners in the gas venture in preparation for either the float or trade sale of Lattice. Origin is pursuing a "dual-track" process for the spin-out of Lattice and has yet to decide whether to sell the conventional oil and gas business to a trade bidder or whether to float it in an initial public offer.
SurfStitch Group Limited (SRF):
Embattled online retailer SurfStitch has sold Rollingyouth, the owner of Stab Magazine, back to its co-founders for a nominal sum after splashing out almost $6 million for the Bondi-based publisher during an ill-fated acquisition spree. The administrators of SurfStitch Group, John Park, Quentin Olde and Joseph Hansell of FTI Consulting, announced the sale of Rollingyouth Pty Ltd on Monday, almost three weeks after SurfStitch was placed into voluntary administration to buy breathing space from creditors and legal foes.
Syrah Resources Limited (SYR):
Syrah Resources' long-awaited binding sales agreement with BTR New Energy Materials is "strategically important" for the graphite products supplier. Under the deal, Syrah will supply 30,000 tonnes of graphite from its Balama operation to BTR New Energy. The supply deal covers the first year of production from the Balama operation. Lawcock reckons the next catalyst will be signing of a debt facility. Syrah had $US101 million at June 30, 2017 of which 75 per cent was committed to project completion and working capital, and the remaining 25 per cent for general corporate purposes. Syrah shares posted their biggest intra-day percentage gain since December last year on Friday and the company topped the list of gainers in the Australian benchmark S&P/200 index at one point during the trading day.
Tabcorp Holdings Limited (TAH):
Tabcorp expects to complete its $11 billion mega merger with gaming rival Tatts on November 1.Tabcorp on Monday said it is confident of completing the deal, with Tatts shareholders scheduled to vote on the scheme of arrangement on October 18, before a second court hearing into the merger six days later. “With substantially all pre-implementation regulatory approvals now in place, we look forward to continuing to work with Tatts to successfully complete the transaction,” Tabcorp chairman Paula Dwyer said in a statement. Tabcorp believes it will take about two years to fully integrate the old Tabcorp and Tatts businesses.
Telecom Limited (TPM):
City-centric TPG Telecom is losing market share as the national broadband network rollout accelerates. The telco may have shed more than one per cent of market share in the year to December 2016, thanks to the regional focus of the NBN rollout. Data collated by the competition watchdog suggests TPG, with a metropolitan-skewed subscriber base of 1.9 million fixed-line broadband subscribers, may have lost even more market share in the June half — largely due to higher broadband penetration in regional areas. Consequently, UBS has downgraded the company’s FY18 earnings forecast and valuation from $6.00 to $5.75 per share on Monday. The acceleration of the NBN rollout will result in lower consumer margins due to higher input costs, higher one-off costs to connect customers to the NBN, and further pressure on iiNet voice revenues.
Telstra Corporation Limited (TLS):
Under chief executive David Thodey, Telstra thought electronic health services could help turn itself from a bureaucratic ex-monopoly into a smart and nimble software provider. Instead, Telstra's start-up health division suffered many of the problems of its parent: infighting, slow decision making and gold-plated spending. Four years after getting a dynamic CEO, Telstra Health loses money, is trying to coordinate more than a dozen businesses with different cultures, objectives and tech systems, and was forced to write off $77 million from an acquisition binge that made some entrepreneurs rich and cost Telstra shareholders $240 million. Telstra's failure to create a business that pays its way, at least in the short term, is an example of a problem facing the broader economy: many large Australian companies have a weak record of building new businesses, leading to pressure to divert profits into dividends.
(Source: AIMS)
Australia’s Cromwell Property Group has launched a roadshow to raise almost $2 billion to back the listing of a European real estate investment trust on Singapore Exchange — the latest marker for local property companies moving offshore. The Cromwell European Real Estate Investment Trust is seeking to raise up to €1.25 billion ($1.86bn) to list in Singapore by the month’s end. The fund would be Singapore’s first euro-denominated real estate trust and faces competition from other vehicles investing in the US. If successful, it would start with a market capitalisation of €1.2bn-€1.25bn when listed on September 28. The fund would own a portfolio of office, logistics and light industrial, and retail assets across Denmark, France, Germany, Italy, The Netherlands and Poland valued at €1.83bn.
GWA Group Limited (GWA):
GWA Group expects the renovations and replacement market to remain "relatively stable" in 2017-18, as it continues to tilt its business further toward the higher value end of the market. The renovations and replacements market is crucial to GWA, which makes about 52 per cent of its revenues from this category through its range of Caroma bathroom basins, baths and toilets, Dorf taps and Clark sinks. The Reserve Bank of Australia says turnover of houses is at its lowest level in almost 25 years, with owners choosing to stay put and renovate rather than shift to a new property. Industry analyst IBISWorld predicts the alternations and additions market will grow by about 8.3 per cent in 2017-18, with kitchen and bathroom renovations adding the most value to a home.
Kidman Resources Limited (KDR):
Shares in Kidman Resources have been placed in a trading halt today ahead of an announcement in relation to a proposed $US110m ($138m) WA Earl Grey lithium deposit joint venture with SQM. Kidman Resources said in an ASX statement today that it expects to make the announcement before trading commences on Wednesday. Last month, SQM chief executive Patricio de Solminihac told investors deal was expected to be completed by September 30, as the company looks to keep up with lithium demand from the electric vehicle and power storage sectors.
Macquarie Group Limited (MQG):
Macquarie Group has given an upbeat assessment of income in its first-half, helped by "stronger performance fees" from its stable of investment funds. The commentary was provided in a presentation by Macquarie's finance chief Patrick Upfold, to be delivered to the CLSA Investor Forum in coming days. "As a result of stronger performance fees now anticipated to be recognised in the first half, the 1H18 result is expected to be up on 1H17 and broadly in line with 2H17," the presentation said. The update to earnings guidance included the usual caveat that it would depend on the completion rate of transactions and September 30 reviews across Macquarie's five business units.
Origin Energy Limited (ORG):
Origin Energy has struck a $250 million deal to buy out a Malaysian partner in a gas project off the south-east coast, simplifying the structure of the asset ahead of the sale of its oil and gas offshoot Lattice Energy and clearing the way for potential expansion of the venture. The deal, under which Lattice will buy a circa 28 per cent stake in the Otway gas project held by Benaris International, is intended to improve the alignment of the venture partners in the gas venture in preparation for either the float or trade sale of Lattice. Origin is pursuing a "dual-track" process for the spin-out of Lattice and has yet to decide whether to sell the conventional oil and gas business to a trade bidder or whether to float it in an initial public offer.
SurfStitch Group Limited (SRF):
Embattled online retailer SurfStitch has sold Rollingyouth, the owner of Stab Magazine, back to its co-founders for a nominal sum after splashing out almost $6 million for the Bondi-based publisher during an ill-fated acquisition spree. The administrators of SurfStitch Group, John Park, Quentin Olde and Joseph Hansell of FTI Consulting, announced the sale of Rollingyouth Pty Ltd on Monday, almost three weeks after SurfStitch was placed into voluntary administration to buy breathing space from creditors and legal foes.
Syrah Resources Limited (SYR):
Syrah Resources' long-awaited binding sales agreement with BTR New Energy Materials is "strategically important" for the graphite products supplier. Under the deal, Syrah will supply 30,000 tonnes of graphite from its Balama operation to BTR New Energy. The supply deal covers the first year of production from the Balama operation. Lawcock reckons the next catalyst will be signing of a debt facility. Syrah had $US101 million at June 30, 2017 of which 75 per cent was committed to project completion and working capital, and the remaining 25 per cent for general corporate purposes. Syrah shares posted their biggest intra-day percentage gain since December last year on Friday and the company topped the list of gainers in the Australian benchmark S&P/200 index at one point during the trading day.
Tabcorp Holdings Limited (TAH):
Tabcorp expects to complete its $11 billion mega merger with gaming rival Tatts on November 1.Tabcorp on Monday said it is confident of completing the deal, with Tatts shareholders scheduled to vote on the scheme of arrangement on October 18, before a second court hearing into the merger six days later. “With substantially all pre-implementation regulatory approvals now in place, we look forward to continuing to work with Tatts to successfully complete the transaction,” Tabcorp chairman Paula Dwyer said in a statement. Tabcorp believes it will take about two years to fully integrate the old Tabcorp and Tatts businesses.
Telecom Limited (TPM):
City-centric TPG Telecom is losing market share as the national broadband network rollout accelerates. The telco may have shed more than one per cent of market share in the year to December 2016, thanks to the regional focus of the NBN rollout. Data collated by the competition watchdog suggests TPG, with a metropolitan-skewed subscriber base of 1.9 million fixed-line broadband subscribers, may have lost even more market share in the June half — largely due to higher broadband penetration in regional areas. Consequently, UBS has downgraded the company’s FY18 earnings forecast and valuation from $6.00 to $5.75 per share on Monday. The acceleration of the NBN rollout will result in lower consumer margins due to higher input costs, higher one-off costs to connect customers to the NBN, and further pressure on iiNet voice revenues.
Telstra Corporation Limited (TLS):
Under chief executive David Thodey, Telstra thought electronic health services could help turn itself from a bureaucratic ex-monopoly into a smart and nimble software provider. Instead, Telstra's start-up health division suffered many of the problems of its parent: infighting, slow decision making and gold-plated spending. Four years after getting a dynamic CEO, Telstra Health loses money, is trying to coordinate more than a dozen businesses with different cultures, objectives and tech systems, and was forced to write off $77 million from an acquisition binge that made some entrepreneurs rich and cost Telstra shareholders $240 million. Telstra's failure to create a business that pays its way, at least in the short term, is an example of a problem facing the broader economy: many large Australian companies have a weak record of building new businesses, leading to pressure to divert profits into dividends.
(Source: AIMS)
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