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AUSTRALIA MARKETS(2018-01-30)

AIMS
2018-01-30 14:17

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AWE Limited(AWE):
In-demand AWE has attracted a third takeover offer, with Japanese heavyweight trader Mitsui lobbing a 95 cents a share cash takeover offer that trumps the $526 million deal the oil and gas producer sealed with Mineral Resources. The offer easily beats both MinRes's deal, which is priced at about 83 cents a share, and the original bid from China Energy Reserve and Chemicals Group at 73 cents a share. Describing the offer as "unsolicited, non-binding and conditional", AWE said the proposal is not conditional on due diligence, financing or regulatory approval but does require the AWE deal with MinRes to be terminated by the close of business on February 2. It also requires AWE directors to unanimously recommend acceptance of the Mitsui proposal in the absence of a higher one. AWE said its board will evaluate the Mitsui proposal but recommended shareholders take no action on either that proposal or CERCG's offer until they receive further advice.
 
Commonwealth Bank of Australia (CBA):
Scandal-hit Commonwealth Bank has named retail banking boss Matt Comyn as its new chief executive, replacing Ian Narev. Mr. Comyn, who is 42 years old, is something of a surprise appointment because many had expected Chairman Catherine Livingstone would look outside the bank to replace Mr. Narev. "CBA is both a significant Australian institution and a world class bank, with a proud history that has delivered great outcomes for its customers, shareholders and people for decades, and is well positioned to build on that success for many years to come," Mr Comyn said in statement. Commonwealth Bank is facing numerous cyclical and structural challenges including stagnant or declining net interest margins and increased regulatory scrutiny after spending more than a decade as Australia's premium banking franchise. Commonwealth Bank chairman Catherine Livingstone thanked outgoing CEO Ian Narev for his service over the last six years noting the total shareholder return during his tenure was over 120 per cent. Mr Narev will retire on April 8, 2018. Mr. Comyn has more than 20 years banking experience and has been the head of the bank's retail arm since 2012.
 
Crown Resorts Limited(CWN):
The James Packer-backed Crown Resorts has finalised the $US300 million sale of its Las Vegas asset to Wynn Resorts. The company told the market today that the sale of its interest in a 34.6 acre vacant site on Las Vegas Boulevard to a subsidiary of Wynn Resorts, which was announced last year, had now been finalised. Crown Resorts said in its announcement to the Australian Stock Exchange that Crown’s share of the proceeds, after taking into account minority interests, was approximately $US264m.
 
CSL Limited(CSL):
CSL shares are gaining on Monday, with the healthcare firm up 1.6 per cent at $149 at last check. Morgan Stanley analysts noted that the firm is due to report half-year earnings on the 14th of February. "New product launches and an early flu season increase the Street's conviction an upgrade to CSL's full year 2018 guidance is nigh - though it's already implicit in the valuation," they said. The broker's expecting revenue to reach $US3.9 billion, net profit of US$846 million, EPS of US$1.89 and a dividend per share of US83¢.Morgan Stanley noted that the US flu season is early and severe this year and it said that as a consequence it sees upside risk to Seqirus numbers.
 
Iluka Resources Limited(ILU):
Iluka Resources has reported a jump in production in 2017, boosted largely by the acquisition of Sierra Rutile in December 2016. The Australian miner (ILU) said its output of zircon, rutile and synthetic rutile was up 22 per cent last year at 825,200 tonnes. The result was ahead of guidance for the company for production of 795,000 tonnes given as recently as late October, which Iluka said was due mainly to operational efficiencies achieved at Sierra Rutile, a supplier of rutile from Sierra Leone. That was despite a 17 per cent drop in fourth-quarter production to 168,600 tonnes over the prior three months after the company stopped processing heavy mineral concentrate in the Murray Basin in eastern Australia.
 
Incitec Pivot Limited(IPL):
Fertiliser and explosives maker Incitec Pivot will restructure its executive team as Incitec Pivot Fertilisers president and Asia Pacific president of Dyno Nobel Simon Atkinson departs the company. Mr Atkinson’s role will be replaced by two positions from January 30, the company said in a statement to the ASX this morning. Greg Hayne, currently the Americas Retail Sales & Operations senior vice president for the company’s industrial explosives arm Dyno Nobel, will take on the role of Dyno Nobel Asia Pacific president. Mr Hayne has previously held a number of operational and commercial leadership roles with the explosives business since joining the company in 2000. Asia Pacific Incitec Pivot chief financial officer James Crough has been appointed interim president of Incitec Pivot Fertilisers while the company looks for permanent president for its fertilisers business. In addition, the company (IPL) has created two new executive roles, appointing technology senior vice president Robert Rounsley as chief technology development officer. Senior vice president Nitrogen for Dyno Nobel Americas Seth Hobby has been appointed executive commercial officer. Both new executives will report directly to managing director and CEO Jeanne Johns.
 
NHA Group.Co.Ltd :
Chinese conglomerate HNA Group Co. Ltd. on Friday has reportedly struck a deal to sell a Sydney building to private-equity firm Blackstone Group L.P, as the company comes under growing financial pressure. Sources familiar with the subject said that Blackstone Real Estate Partners (BREP) Asia agreed to acquire the property in 1 York Street for about A$200 million ($161 million). The aviation-to-financial group bought the office for around A$117 million ($94 million) in 2011. For the past 10 years, the struggling company has made about $14.5 billion of property investments. Facing increased scrutiny of its unclear ownership and use of leverage, HNA for the past few months has put most of its attention to shrinking its offshore real estate investments.
 
Prospect Resources Limited(PSC):
Prospect Resources launched a capital raising on Monday, with proceeds earmarked for the development of one of the world's largest hard rock lithium projects. The ASX-listed developer has mandated Hunter Capital Advisors to raise a minimum of $10 million at ¢ per share, according to a term sheet sent to investors . Hunter Capital is calling for firm bids to be submitted by 12pm on Tuesday. It is understood $6 million has already been secured from cornerstone investors. Prospect Resources owns the Arcadia lithium project in Zimbabwe, which has near term production of both spodumene and petalite. The company has agreed terms on a seven-year offtake agreement with Chinese company Sinomine for its phase 1 production.
 
Westpac Banking Corporation(WBC):
Westpac Banking Corporation has confirmed it's preparing a new hybrid securities offer. The bank has tapped seven brokers to arrange the roadshow and help sell the deal, which is expected to launch shortly subject to market conditions. The syndicate includes ANZ Banking Group, Commonwealth Bank of Australia, JPMorgan, Morgans, National Australia Bank, UBS and Westpac Institutional Bank. Westpac's new hybrid offer will likely replace the $1.19 billion Westpac Convertible Preference Shares (WBCPC) which hit the market in 2012. It is expected that Westpac Convertible Preference Shares investors will be offered securities in the new deal, as part of an investor rollover offer. It is expected to be worth up to $1.5 billion.
(Source: AIMS)
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