Amaysim Australia Limited (AYS):
Mobile reseller Amaysim expects to shake up the electricity retailing sector as it launches its new energy offer to customers just as heightened political and public debate about surging household bills generates a fresh wave of customer switching. The launch of Amaysim Energy, which follows the telco’s $120 million acquisition in April of junior retailer Click Energy, is similar to multi-utility, one-stop-shop offers by some players in the UK that cut across electricity, gas, mobile and broadband. Chief executive Julian Ogrin said Amaysim would leverage its customer experience and software development expertise to provide a new, simple and convenient energy offer using a mobile app and online service platform. ‘‘What we are essentially doing is dialling up the convenience even further,’’ he said. ‘‘We’re not a telco, we’re actually a technology company full of software developers and customer experience experts so we’re a development company that really disrupts traditional ways of service and provides a new one online.’’
Costa Group Holdings Limited (CGC):
The nation’s largest fruit and vegetable company is set to announce a revolutionary investment in solar power technology to support a $65 million expansion of its mushroom business and is eyeing similar plants to power its citrus and berries operations. The board of Costa Group, which includes the group’s founder Frank Costa, recently signed off on a plan to build its first solar power plant at its Monarto mushroom farm in Adelaide, the biggest in South Australia. The $4m solar project will also supply power to the mushroom farm once a $65m expansion of the facility, doubling its weekly output, is completed next year. “Within two years we would expect to have batteries co-located with the solar farm. If that is the case we would take the whole farm off the grid,’’ Costa Group chief executive Harry Debney said ahead of the group’s annual meeting this week where chairman Neil Chatfield is expected to detail the firm’s solar power plans. Costa is talking to global battery storage technology pioneer Tesla about installing its technology to support the power needs of the mushroom plant expansion. In the interim, the Monarto facility will continue to rely on recently established diesel generators or power from the South Australian electricity grid to support its operations at night. Costa has also spent $2m installing backup generators at its Mernda mushroom facility outside Melbourne to reduce the risk of blackouts, which could destroy up to seven weeks’ worth of crops.
Elders Limited (ELD):
Elders investors will receive their first dividend in nearly a decade as the rural services and pastoral company cements its turnaround from some dark days during the global financial crisis. Long-suffering shareholders will be paid a combined 15¢ a share, comprising a fully franked final dividend of 7.5¢ a share and a fully franked special dividend of 7.5¢ a share, both to be paid on December 15, after the company more than doubled bottom-line net profit to $116 million for the year ended September 30. Elders shares closed almost 8 per cent higher on Monday. Its last divided was 5.5¢ in October 2008.
Incitec Pivot Limited (IPL):
Incitec Pivot shares have jumped to a two-year high after the explosives and fertiliser manufacturer beat full-year earnings expectations and declared it would embark on a $300 million on-market buyback. But there was no evidence that it is making progress on the “mission to save Gibson Island”, its Brisbane fertiliser plant, and the 1500 jobs Incitec has said it supports. The company confirmed the plant will close within a year if it cannot get what Incitec calls “economically viable gas”. Incitec lifted underlying full-year profit by 8 per cent to $318.7 million, which was up on Goldman Sachs estimates of $305m. A final unfranked dividend of 4.9c per share was declared in addition to the buyback, bringing full-year dividends to 9.4c, up from 8.7c a year earlier.
Kingsgate Consolidated Limited (KCN):
Recent movements on the share register of goldminer and litigant Kingsgate Consolidated have raised some eyebrows. Kingsgate, which not too long ago was a $1 billion-plus miner with a share price of $11 apiece, has more than doubled from 22c in August to as high as 50c earlier this month as it makes progress on its various legal issues. Kingsgate is embroiled in an ongoing dispute with the government of Thailand over its decision last year to order the closure of Kingsgate’s Chatree goldmine, the company’s only source of cashflow. It also last month launched legal proceedings in the NSW Supreme Court against Zurich Australia Insurance, which had denied Kingsgate’s $200 million insurance claim against political risk. Much of the share-price gain has come on the back of buying by British-based Metal Tiger, which has emerged from nowhere to now hold a 6.6 per cent stake in Kingsgate. The big question is just what, if anything, Metal Tiger plans to do with its position. Metal Tiger has experience in Thailand and has also been working to prepare an IPO of its Thai lead-zinc-silver mines, although that was recently postponed until the first quarter of next year. The big question in the case of Kingsgate will be whether Metal Tiger believes its existing Kingsgate board can resolve the issues with Thailand. Chairman Ross Smyth-Kirk has been in the role for more than 15 years and has seen off more than his share of dissenting shareholders in the past so will no doubt be ready if Metal Tiger has an appetite for change.
Medibank Private Limited (MPL):
Medibank chief executive Craig Drummond is confident a future Labor government will not derail the Turnbull government’s health insurance reforms, saying the measures have broad political support. Mr Drummond, speaking after Medibank’s annual general meeting in Melbourne yesterday, said he was not concerned that political instability could affect health insurance initiatives flagged by the government to address affordability concerns. “You look at the reforms and they all make good sense,” Mr Drummond said. “I think we have had pretty strong commentary from most sides of parliament. In fact, all stakeholders, the AMA and others, have made supportive comments. “I think the reforms as a group makes sense ... I think there will be a broad range of support.” Mr Drummond said he believed that some of the reforms that had been announced by Health Minister Greg Hunt would be implemented in the new year, meaning they would be introduced ahead of any future change of government. He said he knew customers were doing it tough, noting that wage growth was barely keeping up with inflation and interest rates on savings were at near record lows, while health costs had grown at nearly 7 per cent a year for the past decade.
Medibank Private Limited (MPL):
Medibank Private has bowed to pressure from financial regulators and community groups to withdraw from carbon heavy fossil fuel investments such as coal miners that damage people’s health. Chairman Elizabeth Alexander said the health insurer would shift its international portfolio towards lowcarbon investments over the next 12 months and invite fund managers to submit proposals for the more challenging task of reducing the carbon intensity of the fossil fuel heavy domestic portfolio. ‘‘In line with our commitment to the health and wellbeing of our customers, Medibank has begun a process to reduce our exposure to carbon intensive assets,’’ Ms Alexander said. Rival health insurer Bupa has told fossil fuel divestment advocacy group Market Forces it isn’t invested in company shares at all. NIB and HCF are shifting their international equities portfolio into a product that screens out coal and tar sands companies as well as those with large fossil fuel reserves.
National Australia Bank Limited (NAB):
The banking industry has briefed senior counsel and is ready to launch an immediate High Court challenge if the $370 million bank tax passes through the South Australian parliament when it resumes today. A constitutional challenge can only be made once the proposed law is passed. While there’s a reasonable level of confidence that the wafer-thin, 11-10 upper house vote against the tax will hold, nothing is taken for granted any more. The SA opposition combined with three crossbenchers to defeat the tax when it was last considered early this month. Only hours later, National Australia Bank announced in its annual profit that it would cut 6000 jobs, albeit with 2000 new positions created that would require specialist digital skills.
Newcrest Mining Limited (NCM):
Newcrest Mining managing director Sandeep Biswas has signalled a potential return to acquisitions as the next step in the company’s turnaround. Speaking at the company’s annual general meeting in Melbourne on Tuesday, Mr Biswas told shareholders that Newcrest’s strengthened financial position would support his pursuit of growth. “Looking ahead, we will look for further profitable growth opportunities, whether that be by investment in exploration, early stage project entry, application of step-change technology and innovation, or through acquisitions,” Mr Biswas said. Newcrest (NCM), which is Australia’s biggest gold miner, has spent the past four years under Mr Biswas unwinding some of the indigestion sustained through its takeover of Papua New Guinea miner Lihir Gold. Major international gold producers such as Newcrest have come under fire in recent years for their dubious acquisition track record, with the Paulson & Co fund of influential US investor John Paulson recently savaging the international gold majors for underperforming the market and overpaying for assets.
Nine Entertainment Co. Holdings Limited (NEC):
Nine Entertainment chairman Peter Costello has insisted the broadcaster is in no hurry to do deals despite supporting the government’s sweeping shake-up of ownership controls. While Mr Costello admitted “everybody is talking to everybody” about potential transactions, he pointed to the network’s resurgent ratings performance under chief executive Hugh Marks as evidence that the company is in good shape even without a merger. Thanks to a raft of hit shows and stronger demand from advertisers, Nine upgraded its earnings forecast, sending shares in the company 0.66 per cent higher to $1.51 as the wider share market finished in the red. “If those laws had changed a decade ago, I think you would have seen a lot of activity, but technology had just passed the laws by,” Mr Costello told The Australian at Nine’s AGM, noting the reforms were a case of too little, too late because of the pace of change in the sector. “They were untangling hurdles that existed in the past but weren’t really barriers under the new technology. I’m not saying there won’t be anything done but I was never of the view that the legislation would pass one day and there would be a multiplicity of deals the next.”
Ruralco Holdings Limited (RHL):
Ruralco’sfull-year profit has jumped to $22.4 million after strong seasonal conditions in Tasmania and the eastern states helped lift growth in its core rural services division. Net profit for the 12 months to September 30 rose from $4.3m a year earlier, when its bottom line was weighed down by the restructuring of its live export and water businesses. Both restructured units posted earnings growth in the year. “I am pleased our core traditional businesses have again delivered strong organic growth, and there has been a positive turnaround in live export and water retail sales,” chief executive Travis Dillon said. Earnings rose 58 per cent to $65.4m in the year, aided by acquisitions made in the first half. The rural services arm posted earnings of $87.9m and was bolstered by above average livestock and wool prices and an increase in real estate sales, the company said. The live export division returned to profit in the year, with earnings of $2.2m, despite a decline in cattle prices over the last quarter.
Suncorp Group Limited (SUN):
Suncorp chief executive Michael Cameron certainly has a hefty workload over the next seven months. And investors are closely watching for any missteps. At the top of Cameron’s list is the mooted divestment of the bancassurer’s life insurance operations while he also needs to decide when it makes sense to divest its holding in Tower New Zealand, after its proposed acquisition was scotched by the competition regulator. The other priority – which Cameron has made the centrepiece of his pitch to funnies – is convincing the market that his controversial marketplace model can work. Street Talk understands there is growing disquiet among a group of local investors about the marketplace strategy and whether it is distracting Suncorp from taking further advantage of an improved profit cycle in general insurance. Others are concerned that executive accountability needs to be fine-tuned.
Wesfarmers Limited (WES):
Wesfarmers-owned hardware giant Bunnings has sold four sites in Australia and New Zealand for more than $180 million through its sale and leaseback program and more deals could be ahead. The buyer was global real estate investment management group CBRE Global Investors, on behalf of clients CBRE Global Investment Partners, who indicated an interest in future purchases. JLL were agents on the deal. The sale comes as concerns about the health of the broader retail market continue, with consumers staying cautious amid weak wages growth and online shopping growing in popularity. But the buyer indicated a preference for the home improvement niche of the retail sector, saying renovation activity, housing churn and demographic trends would drive growth for the four assets. CBRE Global Investors director of investment for Australia and New Zealand Chris Johnston said the portfolio offered a strong credit tenant with quality assets and attractive lease terms.
Woodside Petroleum Limited (WPL):
Royal Dutch Shell will exit its whole stake in Woodside Petroleum after more than 30 years as a shareholder and two unsuccessful takeover attempts, in a $3.5 billion sale to institutions. The full sell down comes after strong demand boosted a process announced last night as a partial sell down. The European oil major said early this morning that it would sell all of its 13.3 per stake in Australia’s biggest standalone oil and gas company, after earlier striking an underwriting deal with UBS and Morgan Stanley to sell 8.5 per cent of Woodside in a $2.5bn sale at $31.10 per share. Woodside chief Peter Coleman said Shell’s well-flagged decision to leave the register would not impact the pair’s relationship as joint venture partners in the Woodside-operated North-West Shelf LNG plant or Browse LNG project in and off Western Australia. “Woodside’s strong and long-standing relationship with Shell will continue following today’s divestment,” Mr Coleman said last night. “Woodside will maintain a close working relationship with Shell - as a joint venture partner and customer of Shell technology - and we recognise that Shell will always be part of our history.” The sale is expected to be completed today.
（Source: AIMS）
Mobile reseller Amaysim expects to shake up the electricity retailing sector as it launches its new energy offer to customers just as heightened political and public debate about surging household bills generates a fresh wave of customer switching. The launch of Amaysim Energy, which follows the telco’s $120 million acquisition in April of junior retailer Click Energy, is similar to multi-utility, one-stop-shop offers by some players in the UK that cut across electricity, gas, mobile and broadband. Chief executive Julian Ogrin said Amaysim would leverage its customer experience and software development expertise to provide a new, simple and convenient energy offer using a mobile app and online service platform. ‘‘What we are essentially doing is dialling up the convenience even further,’’ he said. ‘‘We’re not a telco, we’re actually a technology company full of software developers and customer experience experts so we’re a development company that really disrupts traditional ways of service and provides a new one online.’’
Costa Group Holdings Limited (CGC):
The nation’s largest fruit and vegetable company is set to announce a revolutionary investment in solar power technology to support a $65 million expansion of its mushroom business and is eyeing similar plants to power its citrus and berries operations. The board of Costa Group, which includes the group’s founder Frank Costa, recently signed off on a plan to build its first solar power plant at its Monarto mushroom farm in Adelaide, the biggest in South Australia. The $4m solar project will also supply power to the mushroom farm once a $65m expansion of the facility, doubling its weekly output, is completed next year. “Within two years we would expect to have batteries co-located with the solar farm. If that is the case we would take the whole farm off the grid,’’ Costa Group chief executive Harry Debney said ahead of the group’s annual meeting this week where chairman Neil Chatfield is expected to detail the firm’s solar power plans. Costa is talking to global battery storage technology pioneer Tesla about installing its technology to support the power needs of the mushroom plant expansion. In the interim, the Monarto facility will continue to rely on recently established diesel generators or power from the South Australian electricity grid to support its operations at night. Costa has also spent $2m installing backup generators at its Mernda mushroom facility outside Melbourne to reduce the risk of blackouts, which could destroy up to seven weeks’ worth of crops.
Elders Limited (ELD):
Elders investors will receive their first dividend in nearly a decade as the rural services and pastoral company cements its turnaround from some dark days during the global financial crisis. Long-suffering shareholders will be paid a combined 15¢ a share, comprising a fully franked final dividend of 7.5¢ a share and a fully franked special dividend of 7.5¢ a share, both to be paid on December 15, after the company more than doubled bottom-line net profit to $116 million for the year ended September 30. Elders shares closed almost 8 per cent higher on Monday. Its last divided was 5.5¢ in October 2008.
Incitec Pivot Limited (IPL):
Incitec Pivot shares have jumped to a two-year high after the explosives and fertiliser manufacturer beat full-year earnings expectations and declared it would embark on a $300 million on-market buyback. But there was no evidence that it is making progress on the “mission to save Gibson Island”, its Brisbane fertiliser plant, and the 1500 jobs Incitec has said it supports. The company confirmed the plant will close within a year if it cannot get what Incitec calls “economically viable gas”. Incitec lifted underlying full-year profit by 8 per cent to $318.7 million, which was up on Goldman Sachs estimates of $305m. A final unfranked dividend of 4.9c per share was declared in addition to the buyback, bringing full-year dividends to 9.4c, up from 8.7c a year earlier.
Kingsgate Consolidated Limited (KCN):
Recent movements on the share register of goldminer and litigant Kingsgate Consolidated have raised some eyebrows. Kingsgate, which not too long ago was a $1 billion-plus miner with a share price of $11 apiece, has more than doubled from 22c in August to as high as 50c earlier this month as it makes progress on its various legal issues. Kingsgate is embroiled in an ongoing dispute with the government of Thailand over its decision last year to order the closure of Kingsgate’s Chatree goldmine, the company’s only source of cashflow. It also last month launched legal proceedings in the NSW Supreme Court against Zurich Australia Insurance, which had denied Kingsgate’s $200 million insurance claim against political risk. Much of the share-price gain has come on the back of buying by British-based Metal Tiger, which has emerged from nowhere to now hold a 6.6 per cent stake in Kingsgate. The big question is just what, if anything, Metal Tiger plans to do with its position. Metal Tiger has experience in Thailand and has also been working to prepare an IPO of its Thai lead-zinc-silver mines, although that was recently postponed until the first quarter of next year. The big question in the case of Kingsgate will be whether Metal Tiger believes its existing Kingsgate board can resolve the issues with Thailand. Chairman Ross Smyth-Kirk has been in the role for more than 15 years and has seen off more than his share of dissenting shareholders in the past so will no doubt be ready if Metal Tiger has an appetite for change.
Medibank Private Limited (MPL):
Medibank chief executive Craig Drummond is confident a future Labor government will not derail the Turnbull government’s health insurance reforms, saying the measures have broad political support. Mr Drummond, speaking after Medibank’s annual general meeting in Melbourne yesterday, said he was not concerned that political instability could affect health insurance initiatives flagged by the government to address affordability concerns. “You look at the reforms and they all make good sense,” Mr Drummond said. “I think we have had pretty strong commentary from most sides of parliament. In fact, all stakeholders, the AMA and others, have made supportive comments. “I think the reforms as a group makes sense ... I think there will be a broad range of support.” Mr Drummond said he believed that some of the reforms that had been announced by Health Minister Greg Hunt would be implemented in the new year, meaning they would be introduced ahead of any future change of government. He said he knew customers were doing it tough, noting that wage growth was barely keeping up with inflation and interest rates on savings were at near record lows, while health costs had grown at nearly 7 per cent a year for the past decade.
Medibank Private Limited (MPL):
Medibank Private has bowed to pressure from financial regulators and community groups to withdraw from carbon heavy fossil fuel investments such as coal miners that damage people’s health. Chairman Elizabeth Alexander said the health insurer would shift its international portfolio towards lowcarbon investments over the next 12 months and invite fund managers to submit proposals for the more challenging task of reducing the carbon intensity of the fossil fuel heavy domestic portfolio. ‘‘In line with our commitment to the health and wellbeing of our customers, Medibank has begun a process to reduce our exposure to carbon intensive assets,’’ Ms Alexander said. Rival health insurer Bupa has told fossil fuel divestment advocacy group Market Forces it isn’t invested in company shares at all. NIB and HCF are shifting their international equities portfolio into a product that screens out coal and tar sands companies as well as those with large fossil fuel reserves.
National Australia Bank Limited (NAB):
The banking industry has briefed senior counsel and is ready to launch an immediate High Court challenge if the $370 million bank tax passes through the South Australian parliament when it resumes today. A constitutional challenge can only be made once the proposed law is passed. While there’s a reasonable level of confidence that the wafer-thin, 11-10 upper house vote against the tax will hold, nothing is taken for granted any more. The SA opposition combined with three crossbenchers to defeat the tax when it was last considered early this month. Only hours later, National Australia Bank announced in its annual profit that it would cut 6000 jobs, albeit with 2000 new positions created that would require specialist digital skills.
Newcrest Mining Limited (NCM):
Newcrest Mining managing director Sandeep Biswas has signalled a potential return to acquisitions as the next step in the company’s turnaround. Speaking at the company’s annual general meeting in Melbourne on Tuesday, Mr Biswas told shareholders that Newcrest’s strengthened financial position would support his pursuit of growth. “Looking ahead, we will look for further profitable growth opportunities, whether that be by investment in exploration, early stage project entry, application of step-change technology and innovation, or through acquisitions,” Mr Biswas said. Newcrest (NCM), which is Australia’s biggest gold miner, has spent the past four years under Mr Biswas unwinding some of the indigestion sustained through its takeover of Papua New Guinea miner Lihir Gold. Major international gold producers such as Newcrest have come under fire in recent years for their dubious acquisition track record, with the Paulson & Co fund of influential US investor John Paulson recently savaging the international gold majors for underperforming the market and overpaying for assets.
Nine Entertainment Co. Holdings Limited (NEC):
Nine Entertainment chairman Peter Costello has insisted the broadcaster is in no hurry to do deals despite supporting the government’s sweeping shake-up of ownership controls. While Mr Costello admitted “everybody is talking to everybody” about potential transactions, he pointed to the network’s resurgent ratings performance under chief executive Hugh Marks as evidence that the company is in good shape even without a merger. Thanks to a raft of hit shows and stronger demand from advertisers, Nine upgraded its earnings forecast, sending shares in the company 0.66 per cent higher to $1.51 as the wider share market finished in the red. “If those laws had changed a decade ago, I think you would have seen a lot of activity, but technology had just passed the laws by,” Mr Costello told The Australian at Nine’s AGM, noting the reforms were a case of too little, too late because of the pace of change in the sector. “They were untangling hurdles that existed in the past but weren’t really barriers under the new technology. I’m not saying there won’t be anything done but I was never of the view that the legislation would pass one day and there would be a multiplicity of deals the next.”
Ruralco Holdings Limited (RHL):
Ruralco’sfull-year profit has jumped to $22.4 million after strong seasonal conditions in Tasmania and the eastern states helped lift growth in its core rural services division. Net profit for the 12 months to September 30 rose from $4.3m a year earlier, when its bottom line was weighed down by the restructuring of its live export and water businesses. Both restructured units posted earnings growth in the year. “I am pleased our core traditional businesses have again delivered strong organic growth, and there has been a positive turnaround in live export and water retail sales,” chief executive Travis Dillon said. Earnings rose 58 per cent to $65.4m in the year, aided by acquisitions made in the first half. The rural services arm posted earnings of $87.9m and was bolstered by above average livestock and wool prices and an increase in real estate sales, the company said. The live export division returned to profit in the year, with earnings of $2.2m, despite a decline in cattle prices over the last quarter.
Suncorp Group Limited (SUN):
Suncorp chief executive Michael Cameron certainly has a hefty workload over the next seven months. And investors are closely watching for any missteps. At the top of Cameron’s list is the mooted divestment of the bancassurer’s life insurance operations while he also needs to decide when it makes sense to divest its holding in Tower New Zealand, after its proposed acquisition was scotched by the competition regulator. The other priority – which Cameron has made the centrepiece of his pitch to funnies – is convincing the market that his controversial marketplace model can work. Street Talk understands there is growing disquiet among a group of local investors about the marketplace strategy and whether it is distracting Suncorp from taking further advantage of an improved profit cycle in general insurance. Others are concerned that executive accountability needs to be fine-tuned.
Wesfarmers Limited (WES):
Wesfarmers-owned hardware giant Bunnings has sold four sites in Australia and New Zealand for more than $180 million through its sale and leaseback program and more deals could be ahead. The buyer was global real estate investment management group CBRE Global Investors, on behalf of clients CBRE Global Investment Partners, who indicated an interest in future purchases. JLL were agents on the deal. The sale comes as concerns about the health of the broader retail market continue, with consumers staying cautious amid weak wages growth and online shopping growing in popularity. But the buyer indicated a preference for the home improvement niche of the retail sector, saying renovation activity, housing churn and demographic trends would drive growth for the four assets. CBRE Global Investors director of investment for Australia and New Zealand Chris Johnston said the portfolio offered a strong credit tenant with quality assets and attractive lease terms.
Woodside Petroleum Limited (WPL):
Royal Dutch Shell will exit its whole stake in Woodside Petroleum after more than 30 years as a shareholder and two unsuccessful takeover attempts, in a $3.5 billion sale to institutions. The full sell down comes after strong demand boosted a process announced last night as a partial sell down. The European oil major said early this morning that it would sell all of its 13.3 per stake in Australia’s biggest standalone oil and gas company, after earlier striking an underwriting deal with UBS and Morgan Stanley to sell 8.5 per cent of Woodside in a $2.5bn sale at $31.10 per share. Woodside chief Peter Coleman said Shell’s well-flagged decision to leave the register would not impact the pair’s relationship as joint venture partners in the Woodside-operated North-West Shelf LNG plant or Browse LNG project in and off Western Australia. “Woodside’s strong and long-standing relationship with Shell will continue following today’s divestment,” Mr Coleman said last night. “Woodside will maintain a close working relationship with Shell - as a joint venture partner and customer of Shell technology - and we recognise that Shell will always be part of our history.” The sale is expected to be completed today.
（Source: AIMS）
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