AMP Limited (AMP):
AMP could be starting a sales process for its New Zealand wealth management arm imminently, according to sources, and the expectation is that private equity firms could be among those lining up to express interest. Selling Australian life insurance companies to other industry participants in the current market is said to be a hard ask, with operations up for sale for some time and some still without a buyer. While AIA and AIG are said to be exploring an acquisition of all AMP’s assets that are up for sale — including its Australian life insurance and the wealth management business across the Tasman — some doubt the parties will go through with an acquisition. The back-up plan is understood to be a spin-off or float of New Zealand, but a sales process is expected first to test buyer appetite. One of the logical parties to look at the business will be Partners Life, a New Zealand life insurer that counts New York private equity giant Blackstone as one of its backers. It will be interesting to see whether Kohlberg Kravis Roberts lines up for the New Zealand business after it contemplated a takeover of AMP with China Life and Macquarie Group in the past.
Caltex Australia Limited (CTX):
Fuel supplier Caltex has been accused by the Fair Work Ombudsman of breaching workplace laws, as the company begins its $120 million buyout of franchisees in a business model overhaul. About 76 per cent of franchisee stores in the Caltex service network have been found to be underpaying staff, failing to pay overtime and penalty rates as well as evidence of threats of termination or visa cancellation for any workers who complained, the ombudsman said. “In light of this alarmingly high level of noncompliance across its retail fuel outlets, I am not surprised by Caltex’s announcement to the ASX last week that it will transition franchise sites to company operations,” said Fair Work Ombudsman Natalie James. “The Fair Work Ombudsman’s report shows Caltex Australia has been presiding over a non-compliant and unsustainable operating model.” It comes after Caltex said it would buy out its 433 franchisees with the aim of having only company — owned service stations by 2020.
CEO Xero Limited (XRO):
Xero founder Rod Drury is moving on from his position as the boss of the cloud accounting software maker, with former senior executive of Microsoft and Apple’s Australian business, Steve Vamos, stepping into his shoes. Mr Drury, who built Xero from scratch, will stay on as a non-executive director. Xero chair Graham Smith said that succession planning had been high on the board’s agenda. “With a strong leadership team in place, Steve’s appointment underpins the important evolution from a founder-led company to a business with worldwide scale.” “At the same time, Xero will continue to benefit from Rod’s product vision as a non-executive director,” Mr Smith said. The company, founded in New Zealand, recently consolidated its listing on the ASX and also posted positive EBITDA and operating cash flows for the first time since it was founded, and Mr Drury said Xero was now ready to take the next step.
Commonwealth Bank of Australia (CBA):
Long-serving Commonwealth Bank director Brian Long will leave the lender as chairman Catherine Livingstone continues to overhaul its most senior staff in the wake of the money laundering scandal. Mr Long, who is currently in his eighth year on the CBA board, including seven of those as chairman of the banks audit committee, will retire after the annual general meeting later this year. The bank faced pressure from proxy advisers at last year’s shareholder meeting to hold accountable the directors who served on the board at the time of the bank’s alleged failure to comply with anti-money laundering legislation. The financial intelligence regulator Austrac last August sued the bank, claiming more than 50,000 breaches of anti-money laundering and counter-terrorism financing legislation. The bank did not send the regulator thousands of legally required reports for transactions that were made through the company’s intelligent deposit machines. Austrac has claimed the machines did not go through rigorous compliance rules before and during the smart ATMs’ rollout from 2012 onwards. The banks audit and risk committee is currently being investigated by the Australian Prudential Regulation Authority as part of an inquiry into CBA’s governance and culture. It came as Ms Livingstone announced the appointment of Anne Templeman-Jones as an independent non-executive director on the bank’s board, effective immediately.
Lynas Corporation Ltd (LYC):
Rare earths miner Lynas has reported a return to profit in the first half of its fiscal year, reflecting higher sales and better prices. The company (LYC) said it made a profit of $63.0 million in the six months through to December, versus a loss of $19.3 million in the same period a year earlier. “Operational and production improvements achieved over the past three years ensured we were well positioned to benefit from increased customer demand and favourable market pricing this half year,” said chief executive Amanda Lacaze. Revenue increased 75 per cent on-year, to $200.9 million, underpinned by a 40 per cent increase in sales volumes and higher average prices across its products, the company said. Lynas said it cut debt to $US256.5 million at the end of the fiscal period, and further reduced borrowings to $US236.5 million in January.
National Australia Bank Ltd. (NAB):
A senior executive in former premier Mike Baird’s unit at the National Australia Bank has resigned over inappropriate behaviour after a discussion with Mr Baird. The NAB yesterday confirmed that the Executive General Manager of Capital Financing at the bank, Steve Lambert, had quit under a cloud after discussions with the former premier, who is now the Chief Customer Officer, Institutional Banking at the bank. A National Australia Bank spokesman said: “In speaking with NAB, Steve acknowledged he had fallen short of the standards of behaviour expected at NAB and that it would be the right thing to leave the bank.”
Oil Search Limited (OSH):
Oil Search and Santos say it will take about eight weeks to repair and restore production at their earthquake-damaged liquefied natural gas project in Papua New Guinea. Oil Search, which has donated $US5 million to disaster relief following last week’s magnitude-7.5 quake in the country’s highlands, says it will revise its production guidance and estimate the likely earnings hit when it can. ASX-listed energy explorers and producers Oil Search and Santos between them own 42.5 per cent of the ExxonMobil-led PNG LNG Project. Exxon and its partners halted both production lines at its LNG operation outside Port Moresby after shutting a gas-conditioning plant in the Highlands region where the magnitude 7.5 earthquake struck.
Virgin Australia Holdings Ltd (VAH):
Virgin Australia’s links with Chinese shareholder HNA are providing a major boost to its traffic from its new route to Hong Kong, according to chief executive John Borghetti. “Virgin has been flying from Melbourne to Hong Kong since last year and plans to start services from Sydney to Hong Kong from the middle of this year,” he said in an interview with The Australian. “If it had not been for the alliance we have with HNA I couldn’t foresee a situation where we would have been able to fly to Hong Kong.” Mr Borghetti said HNA’s subsidiary, Hong Kong Airlines, had already proved an important feeder for traffic from Hong Kong and China for the new Virgin international service. He said Virgin was keen to plug in to the strong interest of Chinese tourists in travelling to Australia. He said it would expand its flights into Hong Kong as soon as more landing slots became available at Hong Kong’s airport.
Vocus Group Ltd. (VOC):
The former Nextgen chief executive David Yuile and Vocus New Zealand boss Mark Callander have been tipped to be among the candidates in the race to replace Geoff Horth as the boss of Vocus Group. The telecommunications company announced on February 26 that by mutual agreement, current chief executive Geoff Horth would leave after serving as chief executive since 2016. Vocus said a search was under way for a new chief executive of the company, overseen by director Bob Mansfield, and that Vocus would appoint a search firm to assist with the appointment, with external and internal candidates both to be under consideration.
Whitehaven Coal Ltd (WHC):
Whitehaven Coal is believed to be working with Grant Samuel to source funding for its tilt at Rio Tinto’s Queensland coalmines that are up for sale through Credit Suisse. Final bids are due on March 12 and the understanding is that Apollo, Whitehaven, EMR Capital with China Investment Corporation and Yancoal — potentially with Glencore — remain in the competition, and it is believed that the interest of listed BHP Billiton spin-off South32 may be waning. It is believed that some bidders prefer to buy just one of the mines, and Whitehaven is thought to have been in this camp, along with South32. One possibility for the listed Whitehaven is that it takes on a private equity firm as partner. This way the partner might take the unwanted asset off its hands. Still, some question whether Whitehaven will win the competition, given that its investors are wary about the company once again amassing too much debt after it became a problem for the company in the past.
(Source: AIMS)
AMP could be starting a sales process for its New Zealand wealth management arm imminently, according to sources, and the expectation is that private equity firms could be among those lining up to express interest. Selling Australian life insurance companies to other industry participants in the current market is said to be a hard ask, with operations up for sale for some time and some still without a buyer. While AIA and AIG are said to be exploring an acquisition of all AMP’s assets that are up for sale — including its Australian life insurance and the wealth management business across the Tasman — some doubt the parties will go through with an acquisition. The back-up plan is understood to be a spin-off or float of New Zealand, but a sales process is expected first to test buyer appetite. One of the logical parties to look at the business will be Partners Life, a New Zealand life insurer that counts New York private equity giant Blackstone as one of its backers. It will be interesting to see whether Kohlberg Kravis Roberts lines up for the New Zealand business after it contemplated a takeover of AMP with China Life and Macquarie Group in the past.
Caltex Australia Limited (CTX):
Fuel supplier Caltex has been accused by the Fair Work Ombudsman of breaching workplace laws, as the company begins its $120 million buyout of franchisees in a business model overhaul. About 76 per cent of franchisee stores in the Caltex service network have been found to be underpaying staff, failing to pay overtime and penalty rates as well as evidence of threats of termination or visa cancellation for any workers who complained, the ombudsman said. “In light of this alarmingly high level of noncompliance across its retail fuel outlets, I am not surprised by Caltex’s announcement to the ASX last week that it will transition franchise sites to company operations,” said Fair Work Ombudsman Natalie James. “The Fair Work Ombudsman’s report shows Caltex Australia has been presiding over a non-compliant and unsustainable operating model.” It comes after Caltex said it would buy out its 433 franchisees with the aim of having only company — owned service stations by 2020.
CEO Xero Limited (XRO):
Xero founder Rod Drury is moving on from his position as the boss of the cloud accounting software maker, with former senior executive of Microsoft and Apple’s Australian business, Steve Vamos, stepping into his shoes. Mr Drury, who built Xero from scratch, will stay on as a non-executive director. Xero chair Graham Smith said that succession planning had been high on the board’s agenda. “With a strong leadership team in place, Steve’s appointment underpins the important evolution from a founder-led company to a business with worldwide scale.” “At the same time, Xero will continue to benefit from Rod’s product vision as a non-executive director,” Mr Smith said. The company, founded in New Zealand, recently consolidated its listing on the ASX and also posted positive EBITDA and operating cash flows for the first time since it was founded, and Mr Drury said Xero was now ready to take the next step.
Commonwealth Bank of Australia (CBA):
Long-serving Commonwealth Bank director Brian Long will leave the lender as chairman Catherine Livingstone continues to overhaul its most senior staff in the wake of the money laundering scandal. Mr Long, who is currently in his eighth year on the CBA board, including seven of those as chairman of the banks audit committee, will retire after the annual general meeting later this year. The bank faced pressure from proxy advisers at last year’s shareholder meeting to hold accountable the directors who served on the board at the time of the bank’s alleged failure to comply with anti-money laundering legislation. The financial intelligence regulator Austrac last August sued the bank, claiming more than 50,000 breaches of anti-money laundering and counter-terrorism financing legislation. The bank did not send the regulator thousands of legally required reports for transactions that were made through the company’s intelligent deposit machines. Austrac has claimed the machines did not go through rigorous compliance rules before and during the smart ATMs’ rollout from 2012 onwards. The banks audit and risk committee is currently being investigated by the Australian Prudential Regulation Authority as part of an inquiry into CBA’s governance and culture. It came as Ms Livingstone announced the appointment of Anne Templeman-Jones as an independent non-executive director on the bank’s board, effective immediately.
Lynas Corporation Ltd (LYC):
Rare earths miner Lynas has reported a return to profit in the first half of its fiscal year, reflecting higher sales and better prices. The company (LYC) said it made a profit of $63.0 million in the six months through to December, versus a loss of $19.3 million in the same period a year earlier. “Operational and production improvements achieved over the past three years ensured we were well positioned to benefit from increased customer demand and favourable market pricing this half year,” said chief executive Amanda Lacaze. Revenue increased 75 per cent on-year, to $200.9 million, underpinned by a 40 per cent increase in sales volumes and higher average prices across its products, the company said. Lynas said it cut debt to $US256.5 million at the end of the fiscal period, and further reduced borrowings to $US236.5 million in January.
National Australia Bank Ltd. (NAB):
A senior executive in former premier Mike Baird’s unit at the National Australia Bank has resigned over inappropriate behaviour after a discussion with Mr Baird. The NAB yesterday confirmed that the Executive General Manager of Capital Financing at the bank, Steve Lambert, had quit under a cloud after discussions with the former premier, who is now the Chief Customer Officer, Institutional Banking at the bank. A National Australia Bank spokesman said: “In speaking with NAB, Steve acknowledged he had fallen short of the standards of behaviour expected at NAB and that it would be the right thing to leave the bank.”
Oil Search Limited (OSH):
Oil Search and Santos say it will take about eight weeks to repair and restore production at their earthquake-damaged liquefied natural gas project in Papua New Guinea. Oil Search, which has donated $US5 million to disaster relief following last week’s magnitude-7.5 quake in the country’s highlands, says it will revise its production guidance and estimate the likely earnings hit when it can. ASX-listed energy explorers and producers Oil Search and Santos between them own 42.5 per cent of the ExxonMobil-led PNG LNG Project. Exxon and its partners halted both production lines at its LNG operation outside Port Moresby after shutting a gas-conditioning plant in the Highlands region where the magnitude 7.5 earthquake struck.
Virgin Australia Holdings Ltd (VAH):
Virgin Australia’s links with Chinese shareholder HNA are providing a major boost to its traffic from its new route to Hong Kong, according to chief executive John Borghetti. “Virgin has been flying from Melbourne to Hong Kong since last year and plans to start services from Sydney to Hong Kong from the middle of this year,” he said in an interview with The Australian. “If it had not been for the alliance we have with HNA I couldn’t foresee a situation where we would have been able to fly to Hong Kong.” Mr Borghetti said HNA’s subsidiary, Hong Kong Airlines, had already proved an important feeder for traffic from Hong Kong and China for the new Virgin international service. He said Virgin was keen to plug in to the strong interest of Chinese tourists in travelling to Australia. He said it would expand its flights into Hong Kong as soon as more landing slots became available at Hong Kong’s airport.
Vocus Group Ltd. (VOC):
The former Nextgen chief executive David Yuile and Vocus New Zealand boss Mark Callander have been tipped to be among the candidates in the race to replace Geoff Horth as the boss of Vocus Group. The telecommunications company announced on February 26 that by mutual agreement, current chief executive Geoff Horth would leave after serving as chief executive since 2016. Vocus said a search was under way for a new chief executive of the company, overseen by director Bob Mansfield, and that Vocus would appoint a search firm to assist with the appointment, with external and internal candidates both to be under consideration.
Whitehaven Coal Ltd (WHC):
Whitehaven Coal is believed to be working with Grant Samuel to source funding for its tilt at Rio Tinto’s Queensland coalmines that are up for sale through Credit Suisse. Final bids are due on March 12 and the understanding is that Apollo, Whitehaven, EMR Capital with China Investment Corporation and Yancoal — potentially with Glencore — remain in the competition, and it is believed that the interest of listed BHP Billiton spin-off South32 may be waning. It is believed that some bidders prefer to buy just one of the mines, and Whitehaven is thought to have been in this camp, along with South32. One possibility for the listed Whitehaven is that it takes on a private equity firm as partner. This way the partner might take the unwanted asset off its hands. Still, some question whether Whitehaven will win the competition, given that its investors are wary about the company once again amassing too much debt after it became a problem for the company in the past.
(Source: AIMS)
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