Rio Tinto (RIO):
Mining giant Rio Tinto will return proceeds from the recent $US2.7 billion sale of its NSW coal operations to shareholders through a share buyback. The company on Friday announced an additional share buyback of $US2.5 billion ($3.2 billion), comprising of an off-market buyback worth $US560 million for the Australian-listed shares and another $US1.9 billion allocation to its existing on-market buyback program for Londonlisted shares. Chief executive Jean Sebastien Jacques said the move demonstrated Rio's commitment to delivering superior value and to returning cash to shareholders. "Shareholder returns of this scale are made possible by maintaining the strongest balance sheet in the sector and a disciplined capital allocation process," he said.
Seven West Media Ltd (SWM):
Shares in regional broadcaster Prime Media sank in early trade after it said talks with Seven West Media over a potential merger had failed to produce an agreement. Seven West (SWM) said it was approached by its regional affiliate but that talks over a prospective deal — enabled by the scrapping of media ownership restrictions — were unproductive. “Seven West Media confirms that there was a conceptual proposal received from Prime but that this did not result in any agreement,” Seven West said in a single-paragraph statement to the ASX. Prime (PRT) gave no specifics of any proposed deal but indicated it would have liked to have pressed ahead. “Prime advises that it did previously have discussions with SWM in relation to a possible combination of the two companies, but that those discussions have ceased,” Prime said in its statement. At 10.30am (AEST), shares in Prime were sharply lower, down 7.4 per cent, or 3.5 cents, at 44 cents. Seven West shares were up 0.35 per cent, or 0.25 cents, at 71.25 cent.
Tabcorp Holdings Ltd (TAH):
The $11 billion merger between Tabcorp and Tatts has been thrown into further confusion, with the jurisdiction of the Australian Competition Tribunal being questioned, which means Tabcorp might have to file a new application. A fresh application could take another three months to complete and raises doubts over the proposed Tatts meeting to consider the merger on October 18.ACT President Justice John Middleton has aired the suggestion with parties to the matter today, with the suggestion the ACT’s jurisdiction expired on September 10. Final decisions are to be made on the issue which is being debated today. Justice Middleton has scheduled a directions hearing for the matter on Tuesday and, yesterday, the full reasons for the Full Court’s decision were made public.
BHP Billiton Ltd (BHP):
Ratings agency Fitch has panned BHP Billiton’s proposed sale of its US shale oil and gas assets, saying that this, and the presence of activist shareholder Elliott on the register, are dragging on the outlook for the company’s credit rating. Fitch has kept the negative outlook on BHP’s “A+” credit rating despite BHP last month announcing better-than-expected cash flow in 2016-17 that led to reduced gearing. “We view the recent announcement regarding the classification of BHP’s US shale assets as non-core as being credit-negative for the company’s longer-term business profile, as the sale of these assets would take away a material portion of the expected future growth in BHP’s petroleum division,” Fitch said today. At its full-year results last month, BHP announced it planned to sell the US shale assets it bought in 2011 for $US20 billion and has since spent $US19bn developing for little return. The announcement came after a sustained public campaign by the $US33bn Elliott fund that gave voice to widespread shareholder discontent over the performance of the shale business.
Fairfax Media Limited (FXJ):
Domain is looking to tap into the $2 billion insurance commission market with the launch of a building, house, landlord and car insurance business. On Friday, the property classifieds business, owned by Fairfax Media, will unveil Domain Insure, a joint venture with insurance specialist Envest. Envest will take a minority 25 per cent stake, while Domain will hold a 70 per cent stake, and key management will take a 5 per cent stake in the new venture as chief executive Antony Catalano ramps up investments in adjacent businesses. Domain is targeting a 1.5 per cent share of the home and contents insurance market over the next five years. It comes as Fairfax Media, publisher of The Australian Financial Review, prepares to spin off Domain. Fairfax Media will retain 60 per cent of Domain, and the remaining 40 per cent will go to existing shareholders.
Australia and New Zealand Banking Group (ANZ) Commonwealth Bank of Australia (CBA) Westpac Banking Corp (WBC) National Australia Bank Limited (NAB):
Australia's top four banks have been warned against trying to pass on costs after they stampeded to dump about $500 million in ATM fees as part of a public relations offensive designed to rebuild their reputations and ward off a royal commission. After Westpac, ANZ and National Australia Bank rushed on Sunday to copy Commonwealth Bank of Australia in terminating fees on their ATMs for customers from other banks, Treasurer Scott Morrison applauded the move but cautioned all four that they must absorb the costs. While the banks put on a happy face when announcing the abolition of ATM fees, they are seething at the Bank Executive Accountability Regime (BEAR) which will force bank bosses to defer almost half their pay for four years and subject banks to fines of up to $210 million for bad behaviour. The regulator, APRA, will have extraordinary new powers, including the power to veto executive appointments.
Commonwealth Bank of Australia (CBA):
Commonwealth Bank’s broking arm, Commonwealth securities, saw a 16.6% fall in net profit over the year to June 3- to $101million, despite a lift in overall revenue, according to statutory accounts filed with the Australian Securities and Investments Commission. Lodged with (ASIC) last week the accounts reveal a 5% rise in brokerage revenue. However, the bank also booked a $8million impairment related to maturing white label contracts with third parties. Business and private banking was the second most profitable division of the bank, contributing $1.6 billion in net profit to the bank’s $9.93 billion annual net profit for the financial year. The retail banking division remains the most profitable, contributing $5billion. CommSec is australia’s largest online broker with more than 40 per cent of the retail market. The bank has recently reduced the cost of trades to as low as $10 from $19.95 to attract younger customers.
Fonterra Shareholders’ Fund (FSF):
The world’s largest dairy exporter has attributed it’s Full year 11 per cent net profit slide due to reduced margins across the business. Still, it has increased its payout to farmers despite poor weather leading to lower milk volumes, and said there was stronger demand for its higher-value consumer products. Sales of its advanced ingredients category also rose 9 per cent on-year.Fonterra said its after-tax profit was $NZ745 million, down 11 per cent on-year, while its normalised earnings before interest and tax was $NZ1.155 billion, down 15 per cent on-year. The profit equates to earnings per share of NZ46 cents, down from 51 cents last year. Dairy prices rose 0.9 per cent to $US3,368 a tonne at the Global Dairy Trade auction held September 19, after dipping slightly in August and making strong gains through April and May.Fonterra said in a regulatory filing that its cash payment to farmers in the co-operative for the year was $NZ6.52 per share, a 52 per cent rise on the previous year. This is made up of a NZ40 cent dividend and a farmgate milk price of $NZ6.12 per kilogram of milk solids.
Santos LTD (STO) & Origin Energy (ORG):
The government's crackdown on east coast LNG exports looks set to be broadened to capture the multibillion-dollar export projects of Origin Energy and Shell to prevent much-needed local gas being sold off cheaply in Asia.The widening of the looming export controls beyond Santos' $US18.5 billion ($23.22 billion) GLNG venture would be in line with last week's blunt criticism by competition chief Rod Sims of Queensland LNG exporters shipping gas to Asia's cheap spot market and "starving" domestic manufacturers. The government is expected to declare as early as Tuesday a "shortfall" in the east coast gas market for 2018 under the new Australian Domestic Gas Security Mechanism. One source said the volume of extra gas the government will declare is required for 2018 will be about 50 petajoules, with the possibility it could be increased to more than 100 petajoules given expected increased demand for gas for power generation to avoid the risk of blackouts.
Telstra Corporation Limited (TLS):
Telstra has cemented itself as a major sports rights player with its AFL, NRL and Super Netball streaming subscriber numbers more than tripling in 2017 and surging past 1.5 million. Over the 2017 seasons, Telstra added 760,000 new subscribers to its AFL Live Pass application, taking the total over 1 million, and its NRL Live app jumped 260 per cent to 504,000. "The scale we've achieved is almost 50 per cent past our own target," Telstra executive director of media Michelle Garra said. Telstra and News Corporation, who jointly own Foxtel, are planning to merge the pay television provider with News Corp-owned Fox Sports. Upon a merger Telstra's stake in the combined company would fall to 35 per cent. The long-term plan is to publicly list the new business, at which point Telstra has indicated it will sell more of its stake.This could free Telstra up to pursue its own sports rights deals as it looks to drive uptake on its Telstra TV platform. Telstra has pockets far deeper than most of Australia's media sector.
Wesfarmers Ltd (WES):
Australia's last great conglomerate, Wesfarmers, is looking at its biggest acquisition in a decade as it examines a bid for sodium cyanide maker Cyanco Holdings. The business has been put up for sale by Oaktree Capital, the $US99 billion ($125 billion) investment group founded by billionaire Howard Marks. The United States-based wing of Deutsche Bank has been helping Oaktree consider its options since early 2016, when a price tag of $US1 billion was placed on the business. However, sources suggested to Street Talk that price expectations had been dialled back to about $US650 million. If a deal was to eventuate, it would be Wesfarmers' largest push since it spent $705 million to buy the seriously underperforming Homebase hardware chain in Britain; Wesfarmers is now busy converting Homebase stores into Bunnings outlets.
（Source: AIMS）
Mining giant Rio Tinto will return proceeds from the recent $US2.7 billion sale of its NSW coal operations to shareholders through a share buyback. The company on Friday announced an additional share buyback of $US2.5 billion ($3.2 billion), comprising of an off-market buyback worth $US560 million for the Australian-listed shares and another $US1.9 billion allocation to its existing on-market buyback program for Londonlisted shares. Chief executive Jean Sebastien Jacques said the move demonstrated Rio's commitment to delivering superior value and to returning cash to shareholders. "Shareholder returns of this scale are made possible by maintaining the strongest balance sheet in the sector and a disciplined capital allocation process," he said.
Seven West Media Ltd (SWM):
Shares in regional broadcaster Prime Media sank in early trade after it said talks with Seven West Media over a potential merger had failed to produce an agreement. Seven West (SWM) said it was approached by its regional affiliate but that talks over a prospective deal — enabled by the scrapping of media ownership restrictions — were unproductive. “Seven West Media confirms that there was a conceptual proposal received from Prime but that this did not result in any agreement,” Seven West said in a single-paragraph statement to the ASX. Prime (PRT) gave no specifics of any proposed deal but indicated it would have liked to have pressed ahead. “Prime advises that it did previously have discussions with SWM in relation to a possible combination of the two companies, but that those discussions have ceased,” Prime said in its statement. At 10.30am (AEST), shares in Prime were sharply lower, down 7.4 per cent, or 3.5 cents, at 44 cents. Seven West shares were up 0.35 per cent, or 0.25 cents, at 71.25 cent.
Tabcorp Holdings Ltd (TAH):
The $11 billion merger between Tabcorp and Tatts has been thrown into further confusion, with the jurisdiction of the Australian Competition Tribunal being questioned, which means Tabcorp might have to file a new application. A fresh application could take another three months to complete and raises doubts over the proposed Tatts meeting to consider the merger on October 18.ACT President Justice John Middleton has aired the suggestion with parties to the matter today, with the suggestion the ACT’s jurisdiction expired on September 10. Final decisions are to be made on the issue which is being debated today. Justice Middleton has scheduled a directions hearing for the matter on Tuesday and, yesterday, the full reasons for the Full Court’s decision were made public.
BHP Billiton Ltd (BHP):
Ratings agency Fitch has panned BHP Billiton’s proposed sale of its US shale oil and gas assets, saying that this, and the presence of activist shareholder Elliott on the register, are dragging on the outlook for the company’s credit rating. Fitch has kept the negative outlook on BHP’s “A+” credit rating despite BHP last month announcing better-than-expected cash flow in 2016-17 that led to reduced gearing. “We view the recent announcement regarding the classification of BHP’s US shale assets as non-core as being credit-negative for the company’s longer-term business profile, as the sale of these assets would take away a material portion of the expected future growth in BHP’s petroleum division,” Fitch said today. At its full-year results last month, BHP announced it planned to sell the US shale assets it bought in 2011 for $US20 billion and has since spent $US19bn developing for little return. The announcement came after a sustained public campaign by the $US33bn Elliott fund that gave voice to widespread shareholder discontent over the performance of the shale business.
Fairfax Media Limited (FXJ):
Domain is looking to tap into the $2 billion insurance commission market with the launch of a building, house, landlord and car insurance business. On Friday, the property classifieds business, owned by Fairfax Media, will unveil Domain Insure, a joint venture with insurance specialist Envest. Envest will take a minority 25 per cent stake, while Domain will hold a 70 per cent stake, and key management will take a 5 per cent stake in the new venture as chief executive Antony Catalano ramps up investments in adjacent businesses. Domain is targeting a 1.5 per cent share of the home and contents insurance market over the next five years. It comes as Fairfax Media, publisher of The Australian Financial Review, prepares to spin off Domain. Fairfax Media will retain 60 per cent of Domain, and the remaining 40 per cent will go to existing shareholders.
Australia and New Zealand Banking Group (ANZ) Commonwealth Bank of Australia (CBA) Westpac Banking Corp (WBC) National Australia Bank Limited (NAB):
Australia's top four banks have been warned against trying to pass on costs after they stampeded to dump about $500 million in ATM fees as part of a public relations offensive designed to rebuild their reputations and ward off a royal commission. After Westpac, ANZ and National Australia Bank rushed on Sunday to copy Commonwealth Bank of Australia in terminating fees on their ATMs for customers from other banks, Treasurer Scott Morrison applauded the move but cautioned all four that they must absorb the costs. While the banks put on a happy face when announcing the abolition of ATM fees, they are seething at the Bank Executive Accountability Regime (BEAR) which will force bank bosses to defer almost half their pay for four years and subject banks to fines of up to $210 million for bad behaviour. The regulator, APRA, will have extraordinary new powers, including the power to veto executive appointments.
Commonwealth Bank of Australia (CBA):
Commonwealth Bank’s broking arm, Commonwealth securities, saw a 16.6% fall in net profit over the year to June 3- to $101million, despite a lift in overall revenue, according to statutory accounts filed with the Australian Securities and Investments Commission. Lodged with (ASIC) last week the accounts reveal a 5% rise in brokerage revenue. However, the bank also booked a $8million impairment related to maturing white label contracts with third parties. Business and private banking was the second most profitable division of the bank, contributing $1.6 billion in net profit to the bank’s $9.93 billion annual net profit for the financial year. The retail banking division remains the most profitable, contributing $5billion. CommSec is australia’s largest online broker with more than 40 per cent of the retail market. The bank has recently reduced the cost of trades to as low as $10 from $19.95 to attract younger customers.
Fonterra Shareholders’ Fund (FSF):
The world’s largest dairy exporter has attributed it’s Full year 11 per cent net profit slide due to reduced margins across the business. Still, it has increased its payout to farmers despite poor weather leading to lower milk volumes, and said there was stronger demand for its higher-value consumer products. Sales of its advanced ingredients category also rose 9 per cent on-year.Fonterra said its after-tax profit was $NZ745 million, down 11 per cent on-year, while its normalised earnings before interest and tax was $NZ1.155 billion, down 15 per cent on-year. The profit equates to earnings per share of NZ46 cents, down from 51 cents last year. Dairy prices rose 0.9 per cent to $US3,368 a tonne at the Global Dairy Trade auction held September 19, after dipping slightly in August and making strong gains through April and May.Fonterra said in a regulatory filing that its cash payment to farmers in the co-operative for the year was $NZ6.52 per share, a 52 per cent rise on the previous year. This is made up of a NZ40 cent dividend and a farmgate milk price of $NZ6.12 per kilogram of milk solids.
Santos LTD (STO) & Origin Energy (ORG):
The government's crackdown on east coast LNG exports looks set to be broadened to capture the multibillion-dollar export projects of Origin Energy and Shell to prevent much-needed local gas being sold off cheaply in Asia.The widening of the looming export controls beyond Santos' $US18.5 billion ($23.22 billion) GLNG venture would be in line with last week's blunt criticism by competition chief Rod Sims of Queensland LNG exporters shipping gas to Asia's cheap spot market and "starving" domestic manufacturers. The government is expected to declare as early as Tuesday a "shortfall" in the east coast gas market for 2018 under the new Australian Domestic Gas Security Mechanism. One source said the volume of extra gas the government will declare is required for 2018 will be about 50 petajoules, with the possibility it could be increased to more than 100 petajoules given expected increased demand for gas for power generation to avoid the risk of blackouts.
Telstra Corporation Limited (TLS):
Telstra has cemented itself as a major sports rights player with its AFL, NRL and Super Netball streaming subscriber numbers more than tripling in 2017 and surging past 1.5 million. Over the 2017 seasons, Telstra added 760,000 new subscribers to its AFL Live Pass application, taking the total over 1 million, and its NRL Live app jumped 260 per cent to 504,000. "The scale we've achieved is almost 50 per cent past our own target," Telstra executive director of media Michelle Garra said. Telstra and News Corporation, who jointly own Foxtel, are planning to merge the pay television provider with News Corp-owned Fox Sports. Upon a merger Telstra's stake in the combined company would fall to 35 per cent. The long-term plan is to publicly list the new business, at which point Telstra has indicated it will sell more of its stake.This could free Telstra up to pursue its own sports rights deals as it looks to drive uptake on its Telstra TV platform. Telstra has pockets far deeper than most of Australia's media sector.
Wesfarmers Ltd (WES):
Australia's last great conglomerate, Wesfarmers, is looking at its biggest acquisition in a decade as it examines a bid for sodium cyanide maker Cyanco Holdings. The business has been put up for sale by Oaktree Capital, the $US99 billion ($125 billion) investment group founded by billionaire Howard Marks. The United States-based wing of Deutsche Bank has been helping Oaktree consider its options since early 2016, when a price tag of $US1 billion was placed on the business. However, sources suggested to Street Talk that price expectations had been dialled back to about $US650 million. If a deal was to eventuate, it would be Wesfarmers' largest push since it spent $705 million to buy the seriously underperforming Homebase hardware chain in Britain; Wesfarmers is now busy converting Homebase stores into Bunnings outlets.
（Source: AIMS）
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