AGL Energy Ltd (AGL):
AGL Energy plans to convert its Liddell coal power station site into a clean energy facility - such as a wind, solar and battery farm - if it closes down the 46-year-old plant on schedule in 2022. The company's rehabilitation report published last month says it will consider "options for the site that are consistent with our commitment to a decarbonised generation fleet and sustainable energy future" and a decision will be made in 2019. AGL chief executive Andy Vesey, under pressure from the Turnbull government to spend hundreds of millions of dollars to keep Liddell open or sell it to someone who will, said on August 10 the board had instead chosen to invest in new clean energy technology which "aligns with what we believe is the future which will be a greater value long term to our shareholders and customers".
Amazon:
A report this week from analysts at Citi has added to the mounting evidence that Amazon is close to hitting the start button on its Australian operations as early as next month - sending yet another shudder down the spines of already jittery retailers and their investors. Sure, Amazon should be a concern for retailers, but it doesn't explain the current weakness in retail spending - the antidote to which is an end to our sluggish wage growth. The Citi report only added to the negative news on the sector this week from the Australian Bureau of Statistics - which the value of retail sales didn't raise at all in July and year-on-year are now running at a meagre 3.6 per cent.
BHP Billiton Ltd (BHP), Rio Tinto Ltd (RIO):
The nation's biggest miners BHP and Rio Tinto are being targeted as part of a near $1 billion corporate tax grab and the major banks have been warned they could face a bank levy if the new West Australian government cannot pass their budget measures. Delivering the first Labor budget for Western Australia in more than nine years, Treasurer Ben Wyatt admitted the government was breaking an election promise by lifting payroll taxes for 1300 big businesses and slugging the state's gold miners with higher royalties. The rate of payroll tax for businesses with a national payroll of more than $100 million will jump to 6 per cent from 5.5 per cent. For businesses with a payroll of more than $1.5 billion the rate will rise to 6.5 per cent, from 5.5 per cent. The measure will raise $435 million over four years.
Commonwealth Bank of Australia (CBA):
Commonwealth Bank of Australia may return to global funding markets as early as this week with its first foreign bond issue since details of the AUSTRAC money laundering saga emerged. The bank’s treasury team was in Europe last week updating debt investors and market participants said it might be in a position to issue bonds this week. A potential deal would allay any concerns that the bank’s access to, or cost of, financing has been impacted by the money laundering debacle, which has hit the share price, prompted the prudential regulator to initiate an independent inquiry and put global credit rating agencies on alert.A CBA debt deal would also come in a busy period of debt sales for Australian companies as Westpac Banking Corp prepares to embark on a global roadshow ahead of a potential USdollar Tier 1 capital raising.
Harvey Norman Holdings Ltd (HVN):
Harvey Norman chairman Gerry Harvey says the furniture and homewares retailer will continue to pay the debts of failed franchisees, even though the 2017 accounts say it has no obligation to do so. "If a franchisee failed and didn't pay the account we are under no obligation to pay it but for our reputation sure we pay it – every supplier knows that," he said. "It's just a case of our reputation. Nothing has ever changed." Mr Harvey's comments have added to confusion about the nature of the retailer's relationship with franchisees, following changes to the accounting treatment for franchisee receivables in Harvey Norman's 2017 accounts. Receivables from franchisees, or loans to franchisees, fell from $943 million to $535 million in 2017, as Harvey Norman excised inventory after "reiterating" that franchisees, rather than the parent company, were responsible for paying suppliers and that Harvey Norman would no longer guarantee debts.
Macquarie Atlas Roads Limited (MQA):
Macquarie Atlas Roads says it ran a ‘‘rigorous and competitive’’ process to choose its strategic advisers Adara Partners, despite chairman Nora Scheinkestel acting as an adviser with the consultancy group. The tollroad company said in late August, after reporting its interim results, that it had retained Adara Partners as well as lawyers King & Wood Mallesons to provide ‘‘independent advice’’ on investment opportunities and strategic issues. Macquarie Atlas, which has a complicated stapled structure with boards in Bermuda and Australia, has been under pressure from shareholders to internalise management to avoid paying the Macquarie Group hefty management and performance fees, which have totalled about $300 million over five years. Macquarie Group owns about 12 per cent of the tollroad group.
Myob Group Ltd (MYO):
The private equity owners of Inghams and MYOB are believed to be preparing for a selldown of their significant stakes in the companies, in deals expected to be major tests of the market’s appetite towards private equity exits. Equity market bankers have the two companies at the top of their deal wishlist, and suggestions are that bankers are trying to build books to trade the shares in both stocks. Financial market sources said Bain tested the market appetite last week to offload its 39 per cent stake in MYOB in a transaction that would be worth nearly $800 million. However, the investment bank did not press on with a deal.
Northern Star Resources Ltd (NST):
The chairman of one of Western Australia's largest gold producers says the state government's decision to increase the royalty rate for the precious metal will jeopardise jobs and the sector's growth opportunities. The McGowan Labor government broke an election promise in its maiden set of books on Thursday with a 50 per cent increase in the royalty paid by gold producers. Northern Star Resources chairman Bill Beament said the higher royalty's impact on jobs and exploration "undermines the McGowan government's claims to be the party of jobs and opportunities for West Australians”. “Rather than helping to solve WA's economic problems, this increased tax will simply make matters worse by imposing another hefty cost on a local industry which is playing a vital role in creating local jobs and driving economic growth for the benefit of the whole state," Mr Beament said.
Ramsay HealthCare (RHC):
While Ramsay had some headaches – such as flagging no growth in its UK and France operations this year, and slower growth in its powerhouse Australian hospitals in the second half of 2017 – Healthscope was altogether in a different basket. Ramsay still posted a hefty 13 per cent climb in dividend and earnings per share. Health scope, on the other hand, has lots of operational challenges. Investors punished the company on the day it reported: it lost more than $570 million in value. The stock, which was trading on a price earnings ratio of 22 times, has continued its fall. On Friday, it touched $1.60 – an all-time low since listing on the ASX three years ago. It is now trading on a PE of 17.5 times earnings. The nation’s second biggest private hospitals operator delivered a 40 per cent net profit slump and flagged project delays. The bottom line was impacted by $62.8 million impairments relating to a loss associated with its recently sold medical centres business and write-downs at Geelong Hospital.
Santos Ltd (STO):
Santos and Origin have inked a new deal to supply Chinese-controlled plastics maker Qenos with ethane until the end of 2019. Santos announced in November 2014 that it has signed a new five-year deal to supply ethane gas to Qenos in NSW. At the time, the deal was heralded as avoiding the potential loss of more than 300 manufacturing jobs threatened by the state's growing gas supply problem. Santos and Origin will supply an estimated 27 petajoules to Qenos for the remainder of 2017 until the end of 2019. "The Cooper Basin has been supplying ethane to Qenos for over 20 years, and I am delighted we have been able to agree new supply arrangements with the company and reinforce our support for Australia's manufacturing industry," Santos chief executive Kevin Gallagher said in a statement.
Vodafone:
It's shaping up to be the biggest local listing over the next six months and could breathe much needed life into the initial public offering market. Street Talk understands Vodafone New Zealand is actively considering an initial public offering, spanning both the New Zealand and Australian exchanges. Sources said a non-deal roadshow is being planned for Aussie and Kiwi investors in coming weeks spearheaded by Deutsche Craigs. If Vodafone presses ahead with the partial IPO, the transaction may slip into 2018. Vodafone NZ is wholly-owned by London-based Vodafone. While the parent company hasn't traditionally floated its international subsidiaries, a deal with Sky would have seen the combined NZ business listed. Sources said one of the biggest undertakings of listing Vodafone NZ would be the subsequent separation from its parent, given the large amount of related party transactions.
(Source: AIMS)
AGL Energy plans to convert its Liddell coal power station site into a clean energy facility - such as a wind, solar and battery farm - if it closes down the 46-year-old plant on schedule in 2022. The company's rehabilitation report published last month says it will consider "options for the site that are consistent with our commitment to a decarbonised generation fleet and sustainable energy future" and a decision will be made in 2019. AGL chief executive Andy Vesey, under pressure from the Turnbull government to spend hundreds of millions of dollars to keep Liddell open or sell it to someone who will, said on August 10 the board had instead chosen to invest in new clean energy technology which "aligns with what we believe is the future which will be a greater value long term to our shareholders and customers".
Amazon:
A report this week from analysts at Citi has added to the mounting evidence that Amazon is close to hitting the start button on its Australian operations as early as next month - sending yet another shudder down the spines of already jittery retailers and their investors. Sure, Amazon should be a concern for retailers, but it doesn't explain the current weakness in retail spending - the antidote to which is an end to our sluggish wage growth. The Citi report only added to the negative news on the sector this week from the Australian Bureau of Statistics - which the value of retail sales didn't raise at all in July and year-on-year are now running at a meagre 3.6 per cent.
BHP Billiton Ltd (BHP), Rio Tinto Ltd (RIO):
The nation's biggest miners BHP and Rio Tinto are being targeted as part of a near $1 billion corporate tax grab and the major banks have been warned they could face a bank levy if the new West Australian government cannot pass their budget measures. Delivering the first Labor budget for Western Australia in more than nine years, Treasurer Ben Wyatt admitted the government was breaking an election promise by lifting payroll taxes for 1300 big businesses and slugging the state's gold miners with higher royalties. The rate of payroll tax for businesses with a national payroll of more than $100 million will jump to 6 per cent from 5.5 per cent. For businesses with a payroll of more than $1.5 billion the rate will rise to 6.5 per cent, from 5.5 per cent. The measure will raise $435 million over four years.
Commonwealth Bank of Australia (CBA):
Commonwealth Bank of Australia may return to global funding markets as early as this week with its first foreign bond issue since details of the AUSTRAC money laundering saga emerged. The bank’s treasury team was in Europe last week updating debt investors and market participants said it might be in a position to issue bonds this week. A potential deal would allay any concerns that the bank’s access to, or cost of, financing has been impacted by the money laundering debacle, which has hit the share price, prompted the prudential regulator to initiate an independent inquiry and put global credit rating agencies on alert.A CBA debt deal would also come in a busy period of debt sales for Australian companies as Westpac Banking Corp prepares to embark on a global roadshow ahead of a potential USdollar Tier 1 capital raising.
Harvey Norman Holdings Ltd (HVN):
Harvey Norman chairman Gerry Harvey says the furniture and homewares retailer will continue to pay the debts of failed franchisees, even though the 2017 accounts say it has no obligation to do so. "If a franchisee failed and didn't pay the account we are under no obligation to pay it but for our reputation sure we pay it – every supplier knows that," he said. "It's just a case of our reputation. Nothing has ever changed." Mr Harvey's comments have added to confusion about the nature of the retailer's relationship with franchisees, following changes to the accounting treatment for franchisee receivables in Harvey Norman's 2017 accounts. Receivables from franchisees, or loans to franchisees, fell from $943 million to $535 million in 2017, as Harvey Norman excised inventory after "reiterating" that franchisees, rather than the parent company, were responsible for paying suppliers and that Harvey Norman would no longer guarantee debts.
Macquarie Atlas Roads Limited (MQA):
Macquarie Atlas Roads says it ran a ‘‘rigorous and competitive’’ process to choose its strategic advisers Adara Partners, despite chairman Nora Scheinkestel acting as an adviser with the consultancy group. The tollroad company said in late August, after reporting its interim results, that it had retained Adara Partners as well as lawyers King & Wood Mallesons to provide ‘‘independent advice’’ on investment opportunities and strategic issues. Macquarie Atlas, which has a complicated stapled structure with boards in Bermuda and Australia, has been under pressure from shareholders to internalise management to avoid paying the Macquarie Group hefty management and performance fees, which have totalled about $300 million over five years. Macquarie Group owns about 12 per cent of the tollroad group.
Myob Group Ltd (MYO):
The private equity owners of Inghams and MYOB are believed to be preparing for a selldown of their significant stakes in the companies, in deals expected to be major tests of the market’s appetite towards private equity exits. Equity market bankers have the two companies at the top of their deal wishlist, and suggestions are that bankers are trying to build books to trade the shares in both stocks. Financial market sources said Bain tested the market appetite last week to offload its 39 per cent stake in MYOB in a transaction that would be worth nearly $800 million. However, the investment bank did not press on with a deal.
Northern Star Resources Ltd (NST):
The chairman of one of Western Australia's largest gold producers says the state government's decision to increase the royalty rate for the precious metal will jeopardise jobs and the sector's growth opportunities. The McGowan Labor government broke an election promise in its maiden set of books on Thursday with a 50 per cent increase in the royalty paid by gold producers. Northern Star Resources chairman Bill Beament said the higher royalty's impact on jobs and exploration "undermines the McGowan government's claims to be the party of jobs and opportunities for West Australians”. “Rather than helping to solve WA's economic problems, this increased tax will simply make matters worse by imposing another hefty cost on a local industry which is playing a vital role in creating local jobs and driving economic growth for the benefit of the whole state," Mr Beament said.
Ramsay HealthCare (RHC):
While Ramsay had some headaches – such as flagging no growth in its UK and France operations this year, and slower growth in its powerhouse Australian hospitals in the second half of 2017 – Healthscope was altogether in a different basket. Ramsay still posted a hefty 13 per cent climb in dividend and earnings per share. Health scope, on the other hand, has lots of operational challenges. Investors punished the company on the day it reported: it lost more than $570 million in value. The stock, which was trading on a price earnings ratio of 22 times, has continued its fall. On Friday, it touched $1.60 – an all-time low since listing on the ASX three years ago. It is now trading on a PE of 17.5 times earnings. The nation’s second biggest private hospitals operator delivered a 40 per cent net profit slump and flagged project delays. The bottom line was impacted by $62.8 million impairments relating to a loss associated with its recently sold medical centres business and write-downs at Geelong Hospital.
Santos Ltd (STO):
Santos and Origin have inked a new deal to supply Chinese-controlled plastics maker Qenos with ethane until the end of 2019. Santos announced in November 2014 that it has signed a new five-year deal to supply ethane gas to Qenos in NSW. At the time, the deal was heralded as avoiding the potential loss of more than 300 manufacturing jobs threatened by the state's growing gas supply problem. Santos and Origin will supply an estimated 27 petajoules to Qenos for the remainder of 2017 until the end of 2019. "The Cooper Basin has been supplying ethane to Qenos for over 20 years, and I am delighted we have been able to agree new supply arrangements with the company and reinforce our support for Australia's manufacturing industry," Santos chief executive Kevin Gallagher said in a statement.
Vodafone:
It's shaping up to be the biggest local listing over the next six months and could breathe much needed life into the initial public offering market. Street Talk understands Vodafone New Zealand is actively considering an initial public offering, spanning both the New Zealand and Australian exchanges. Sources said a non-deal roadshow is being planned for Aussie and Kiwi investors in coming weeks spearheaded by Deutsche Craigs. If Vodafone presses ahead with the partial IPO, the transaction may slip into 2018. Vodafone NZ is wholly-owned by London-based Vodafone. While the parent company hasn't traditionally floated its international subsidiaries, a deal with Sky would have seen the combined NZ business listed. Sources said one of the biggest undertakings of listing Vodafone NZ would be the subsequent separation from its parent, given the large amount of related party transactions.
(Source: AIMS)
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