Australian and New Zealand Banking Group (ANZ):
New Zealand's Overseas Investment Office (OIO) has torpedoed the Chinese HNA Group's proposed $NZ660 million acquisition of ANZ's asset finance and investment business UDC Finance as flagged by The Australian Financial Review's Street Talk column on December 1. The Overseas Investment Office, the equivalent to Australia's Foreign Investment Review Board, has not explained why it has knocked bank the Chinese conglomerate's bid but is expected to make an announcement later today. HNA Group, an acquisitive business which owns 10 per cent of Deutsche Bank and 19 per cent of Virgin Australia, has been under considerable scrutiny from foreign regulators because of its high levels of debt and opaque ownership structure. ANZ Bank group executive and New Zealand CEO David Hisco said the sale agreement would remain in place should HNA Group choose to appeal the decision.
AWE Limited (AWE) & Mineral Resource (MIN):
AWE's board has backed fellow Australian resources company Mineral Resources takeover offer. The offer values AWE at 83¢ a share, or approximately $526 million. The new valuation is an increase from Mineral Resources previous bid of 80¢ a share. Wednesday, AWE's share price rose to a two-year high, reaching 89¢ before ending the day's trading at 88¢, lifting the company's market cap to $532.62 million. Mineral Resources approved offer consists of a scheme of arrangement comprising 41.5¢ in cash and between 0.0198 and 0.0277 Mineral Resources shares per AWE share. AWE shareholders will have the option to receive either 100 per cent cash or 100 per cent scrip, with allocation subject to scale back to ensure the total consideration paid is split evenly between cash and scrip. AWE chairman Kenneth Williams said the Mineral Resources offer is an attractive one.
BHP Billiton Limited (BHP):
It’s been a rough few months for the Minerals Council of Australia, with its biggest member, BHP Billiton, flexing its financial muscle over the influential lobby group’s role in the climate debate. But it appears the council is pushing back, in a small way at least, as BHP’s public dressing down of the peak industry group rankles other members (although not to the extent where they have gone public). The lobby group has taken the BHP onslaught, which is understood to have rankled other big members, on the chin, offering little response and no indication of whether it will cede to BHP’s calls.
Blue Scope Steel Limited (BSL):
BlueScope Steel has lifted its forecast for first-half underlying earnings by $40 million to $460 million. The increase is mainly on account of higher steel prices and volumes in the local market, a higher contribution from export coke, and recognition of previously impaired tax assets at its Indian joint venture. The company, which has extensive operations in the US, also said the passing of tax reform there will result a 7 per cent decrease in the federal tax rate on its US earnings in FY2018 and 11 per cent in subsequent years.
IMF Bentham Limited (IMF):
IMF Bentham, one of the pioneers of third-party funding for Australia’s booming class action industry, says it welcomes the federal inquiry into litigation funding and that it has the potential to establish a new regulatory regime for the sector. Litigation funders provide funding for litigation in return for a share of the proceeds — which can be up to 40 per cent of the money awarded — if the case is successful. They also bear the financial risk of adverse costs. “The ALRC’s inquiry offers the potential to establish a new regulatory regime which would not only apply to funders operating in Australia, but could be exported globally — another opportunity for Australia to innovate and lead the world in this sector,” IMF said. To date, it has returned on average 62 per cent of $2.1bn litigation proceeds to clients. IMF shares are up 61 per cent year to date.
Incitec Pivot Limited (IPL):
The future of Incitec Pivot’s Gibson Island fertiliser plant at Brisbane and the jobs of 1500 workers the company says it supports are looking increasingly precarious, with the company so far failing to secure gas at a price that will let it continue operating beyond October. But the company says it will keep trying to source the gas. In speech notes issued ahead of Incitec’s annual general meeting in Melbourne today, chairman Paul Brasher said Gibson Island remained a significant challenge. Incitec says the plant supports 1500 direct and indirect jobs in Brisbane, about 400 of which are direct employees. In the Incitec speech notes, new managing director Jeanne Johns said the company had not given up hope on the plant. “Securing affordable gas for Gibson Island continues to be a major focus for the management team,” she said. Ms Johns said the main focus for this year would be “looking for organic growth opportunities that play to our strengths and core competencies”.
Mirvac Group (MGR):
ASX-listed Mirvac Group has struck up a fresh capital partnership with the sale of a half interest in Kawana Shoppingworld on Queensland’s Sunshine Coast to superannuation group-backed funds manager ISPT. The deal, flagged by The Australian, saw ISPT pick up a half stake in the asset for $186 million, based on a crisp capitalisation rate of 5.5 per cent, and the pair now plan to expand the centre. Mirvac chief executive Susan Lloyd-Hurwitz said the transaction provided a great opportunity for Mirvac to extend its relationship with ISPT, which also holds a 50 per cent interest in the listed group’s office asset, 2 Riverside Quay, in Melbourne.
Retail Food Group Limited (RFG):
Retail Food Group recouped some of the steep losses made since Fairfax Media revealed that many franchisees were struggling to survive under the company's sharp business model, with about 200 stores currently up for sale. RFG responded on Thursday, telling the exchange operator that its forecast of a 34 per cent fall in expected half-year profit was not "revised" guidance, because it had previously only given an outlook for its full-year underlying profit. Stockbroking firm Morgans thought RFG shares had been "oversold", meaning the price had fallen to below its true value. Bannister Law said on Thursday it is investigating whether RFG breached the Corporations Act by telling the market on three occasions it expected to grow its underlying net profit by 6 per cent this financial year. The shares are down 52.4 per cent since the start of December.
Telstra Corporation Limited (TLS):
The Turnbull government has called time on millions of dollars in subsidies paid to Telstra in a move that could trigger the demise of the payphones still dotted across Australian cities and regional areas. According to the government, the existing Universal Service Obligation scheme — which sees Telstra annually receive hundreds of millions of dollars in subsidies to ensure every Australian has access to a landline voice service — will be phased out by 2020. Telstra receives $40 million a year to maintain the payphone network as part of the USO. According to Vodafone Australia, the payphones are part of a wider national transmission network and Telstra is already using them to make money while taking the subsidy from the government. Telstra will continue to serve as the voice service provider of last resort until the NBN is available everywhere in the country. The government has also outlined that the USG will have to be more cost-effective than the current arrangement, which costs it $100m per year, and will require that a new consumer safeguards framework is in place by 2020.
(Source: AIMS)
New Zealand's Overseas Investment Office (OIO) has torpedoed the Chinese HNA Group's proposed $NZ660 million acquisition of ANZ's asset finance and investment business UDC Finance as flagged by The Australian Financial Review's Street Talk column on December 1. The Overseas Investment Office, the equivalent to Australia's Foreign Investment Review Board, has not explained why it has knocked bank the Chinese conglomerate's bid but is expected to make an announcement later today. HNA Group, an acquisitive business which owns 10 per cent of Deutsche Bank and 19 per cent of Virgin Australia, has been under considerable scrutiny from foreign regulators because of its high levels of debt and opaque ownership structure. ANZ Bank group executive and New Zealand CEO David Hisco said the sale agreement would remain in place should HNA Group choose to appeal the decision.
AWE Limited (AWE) & Mineral Resource (MIN):
AWE's board has backed fellow Australian resources company Mineral Resources takeover offer. The offer values AWE at 83¢ a share, or approximately $526 million. The new valuation is an increase from Mineral Resources previous bid of 80¢ a share. Wednesday, AWE's share price rose to a two-year high, reaching 89¢ before ending the day's trading at 88¢, lifting the company's market cap to $532.62 million. Mineral Resources approved offer consists of a scheme of arrangement comprising 41.5¢ in cash and between 0.0198 and 0.0277 Mineral Resources shares per AWE share. AWE shareholders will have the option to receive either 100 per cent cash or 100 per cent scrip, with allocation subject to scale back to ensure the total consideration paid is split evenly between cash and scrip. AWE chairman Kenneth Williams said the Mineral Resources offer is an attractive one.
BHP Billiton Limited (BHP):
It’s been a rough few months for the Minerals Council of Australia, with its biggest member, BHP Billiton, flexing its financial muscle over the influential lobby group’s role in the climate debate. But it appears the council is pushing back, in a small way at least, as BHP’s public dressing down of the peak industry group rankles other members (although not to the extent where they have gone public). The lobby group has taken the BHP onslaught, which is understood to have rankled other big members, on the chin, offering little response and no indication of whether it will cede to BHP’s calls.
Blue Scope Steel Limited (BSL):
BlueScope Steel has lifted its forecast for first-half underlying earnings by $40 million to $460 million. The increase is mainly on account of higher steel prices and volumes in the local market, a higher contribution from export coke, and recognition of previously impaired tax assets at its Indian joint venture. The company, which has extensive operations in the US, also said the passing of tax reform there will result a 7 per cent decrease in the federal tax rate on its US earnings in FY2018 and 11 per cent in subsequent years.
IMF Bentham Limited (IMF):
IMF Bentham, one of the pioneers of third-party funding for Australia’s booming class action industry, says it welcomes the federal inquiry into litigation funding and that it has the potential to establish a new regulatory regime for the sector. Litigation funders provide funding for litigation in return for a share of the proceeds — which can be up to 40 per cent of the money awarded — if the case is successful. They also bear the financial risk of adverse costs. “The ALRC’s inquiry offers the potential to establish a new regulatory regime which would not only apply to funders operating in Australia, but could be exported globally — another opportunity for Australia to innovate and lead the world in this sector,” IMF said. To date, it has returned on average 62 per cent of $2.1bn litigation proceeds to clients. IMF shares are up 61 per cent year to date.
Incitec Pivot Limited (IPL):
The future of Incitec Pivot’s Gibson Island fertiliser plant at Brisbane and the jobs of 1500 workers the company says it supports are looking increasingly precarious, with the company so far failing to secure gas at a price that will let it continue operating beyond October. But the company says it will keep trying to source the gas. In speech notes issued ahead of Incitec’s annual general meeting in Melbourne today, chairman Paul Brasher said Gibson Island remained a significant challenge. Incitec says the plant supports 1500 direct and indirect jobs in Brisbane, about 400 of which are direct employees. In the Incitec speech notes, new managing director Jeanne Johns said the company had not given up hope on the plant. “Securing affordable gas for Gibson Island continues to be a major focus for the management team,” she said. Ms Johns said the main focus for this year would be “looking for organic growth opportunities that play to our strengths and core competencies”.
Mirvac Group (MGR):
ASX-listed Mirvac Group has struck up a fresh capital partnership with the sale of a half interest in Kawana Shoppingworld on Queensland’s Sunshine Coast to superannuation group-backed funds manager ISPT. The deal, flagged by The Australian, saw ISPT pick up a half stake in the asset for $186 million, based on a crisp capitalisation rate of 5.5 per cent, and the pair now plan to expand the centre. Mirvac chief executive Susan Lloyd-Hurwitz said the transaction provided a great opportunity for Mirvac to extend its relationship with ISPT, which also holds a 50 per cent interest in the listed group’s office asset, 2 Riverside Quay, in Melbourne.
Retail Food Group Limited (RFG):
Retail Food Group recouped some of the steep losses made since Fairfax Media revealed that many franchisees were struggling to survive under the company's sharp business model, with about 200 stores currently up for sale. RFG responded on Thursday, telling the exchange operator that its forecast of a 34 per cent fall in expected half-year profit was not "revised" guidance, because it had previously only given an outlook for its full-year underlying profit. Stockbroking firm Morgans thought RFG shares had been "oversold", meaning the price had fallen to below its true value. Bannister Law said on Thursday it is investigating whether RFG breached the Corporations Act by telling the market on three occasions it expected to grow its underlying net profit by 6 per cent this financial year. The shares are down 52.4 per cent since the start of December.
Telstra Corporation Limited (TLS):
The Turnbull government has called time on millions of dollars in subsidies paid to Telstra in a move that could trigger the demise of the payphones still dotted across Australian cities and regional areas. According to the government, the existing Universal Service Obligation scheme — which sees Telstra annually receive hundreds of millions of dollars in subsidies to ensure every Australian has access to a landline voice service — will be phased out by 2020. Telstra receives $40 million a year to maintain the payphone network as part of the USO. According to Vodafone Australia, the payphones are part of a wider national transmission network and Telstra is already using them to make money while taking the subsidy from the government. Telstra will continue to serve as the voice service provider of last resort until the NBN is available everywhere in the country. The government has also outlined that the USG will have to be more cost-effective than the current arrangement, which costs it $100m per year, and will require that a new consumer safeguards framework is in place by 2020.
(Source: AIMS)
Latest comments