Australia and New Zealand Banking Group (ANZ):
ANZ has sold its majority stake in a Cambodian joint venture in a move that further unwinds the bank’s exposure in the region. The sale of a 55 per cent stake in ANZ Royal Bank to Japanese financial house J Trust was booked at a $30 million loss. ANZ will continue to own its 55 per cent stake and manage the ANZ Royal business for up to 12 months as it transitions to J Trust. J Trust is a Japanese diversified financial holding company listed on the Tokyo Stock Exchange. Significantly, the sale removes a thorn in the side of ANZ just as all banks are coming under scrutiny in Australia. ANZ said its decision to sell the stake was in line with its ongoing strategic review of international partnerships, in order to simplify the business and operate wholly-owned institutional businesses in the region. In recent years ANZ chief Shayne Elliot has overseen sales of its stakes in Metrobank Card Corporation in the Philippines and Shanghai Rural Commercial Bank in China, as well as its Australian life insurance and superannuation businesses. This is a reversal of the “super regional” Asian growth strategy of previous chief executive Mike Smith.
Commonwealth Bank (CBA):
Commonwealth Bank chief risk officer David Cohen is in the frame to appear as a witness in the financial services royal commission, which kicks off its third round of hearings on loans to small- and medium-sized businesses on Monday. If Mr Cohen appears, he would be the second executive from a major-bank senior leadership team to face crossexamination at the royal commission. The first was National Australia Bank chief customer officer consumer and wealth Andrew Hagger, who appeared on April 23 in the last round of hearings on financial advice. It’s understood that CBA has prepared a witness statement for Mr Cohen on the second topic of the hearings — the approach of banks to enforcement, management and monitoring of loans to businesses. Cases studies on the topic will focus on CBA/BankWest and NAB.
CSL Limited (CSL):
Biotech giant CSL has lifted its full-year profit guidance, partly prompted by a severe flu season in the northern hemisphere, which drove up demand for vaccine. The blood products company (CSL) told the ASX it now expects its net profit after tax to be within the range of $US1.68 billion ($2.24bn) and $US1.71bn, up from between $US1.55bn and $US1.6bn previously forecast. Chief executive Paul Perreault noted better-than-expected sales of haemophilia treatment Idelvion and Haegarda, a therapy for patients with hereditary angioedema. “Furthermore, (flu vaccine) Seqirus is also performing well, following a severe northern hemisphere influenza season. “The phasing of investments in some of our clinical trials has also yielded a positive financial variance.” CSL shares hit a record high of $181.07 yesterday before closing 1.49 per cent lower at $175.69. It comes after the biotech giant in February booked a 35 per cent hike in first-half profit to $US1.086bn.
Fletcher Building Limited (FBU):
Fletcher Building has hired Macquarie Capital to sell its US-based Formica laminates business, according to sources. Investment banks were invited to pitch for a role last month selling the division of the Australian and New Zealand-listed building materials supplier. Fletcher (FBU) told the market in April that Formica was to be divested after writedowns on its major construction projects, which caused the Auckland-based group to breach its debt covenants and report losses. As a result, it needed to raise funds. However, much of Fletcher’s liquidity was boosted by a $NZ750m capital raising in April and the company says the divestment of Formica was also due to the findings of its strategic review, which determined Fletcher was better placed to focus on its key geographies of Australia and New Zealand. Private equity firms and US trade groups are seen as the most likely buyers. The business is worth about $1 billion, according to analysts. Fletcher acquired the business for $US700 million in 2007.
Godfreys Group Ltd (GFY):
John Johnston, the 99-year-old co-founder of Godfreys gained control of the stricken vacuum cleaner retailer on Friday after major shareholders signalled they would sell into his higher takeover offer. Mr Johnston moved well beyond the 50.1 per cent mark on Friday after promises by the fund manager behind two blocks of shares totalling almost 20 per cent of the company, to accept the offer. Mr Johnston's Arcade Finance had already secured 40.9 per cent of Godfreys by the close of trade on Thursday. The extra shares held by Kentgrove Capital and NGE Capital, both run by by David Lamm, will deliver Arcade control over Godfreys. The 99-year-old lifted his takeover offer on May 17 via his bidding vehicle Arcade Finance. Arcade raised the offer to 33.5¢ per share from the original 32¢ per share and also extended it by a further two weeks to a new closing date of June 7. Mr Johnston had been steadily gaining acceptances. At the start of his takeover bid on April 9 for the company, Mr Johnston owned 28 per cent of the group. Godfreys on May 9 warned of an alarming 27 per cent tumble in sales in the previous two weeks as it revealed a hefty profit downgrade of at least 30 per cent after a disastrous switch in its television advertising approach away from discount sales. The Godfreys board on May 9 recommended shareholders accept the offer.
Myer Holdings Ltd (MYR):
Billionaire rag trader Solomon Lew has again taken aim at troubled department store Myer, saying the company's entire future is at risk and called for the board to resign after outlining in a letter to fellow shareholders that they should be bracing for a fourth profit downgrade in coming months, as well as significant losses come September. The chairman of Premier Investments, Myer's the biggest shareholder, again called for the dismissal of executive chairman Gary Hounsell, who on Wednesday revealed another disaster with sales for the financial year to date down 3.4 per cent. This sales decline is despite the extreme discounting program that Myer has been running for the past three months, Mr Lew added. Australia's largest department store chain reported its sixth consecutive fall in same-store sales this week and has issued three profit warnings since July 2017. Mr Lew has been a thorn in the side of Myer since Premier acquired a 10.8 per cent stake in March 2017 at $1.15 a share and has been threatening for more than six months to roll the board via an extraordinary general meeting. Same-store sales fell 3.1 per cent in the April quarter, a slight improvement on the 3.6 per cent decline in the allimportant January quarter but worse than the 2 per cent fall in the year-ago period. Analysts had expected same-store sales to fall about 3.5 per cent.
Santos Ltd (STO):
Harbour Energy could return with a new bid valuing Santos at $6.80 to $7.20 a share. That's the view of Macquarie analysts who reckon Santos' board will reject Harbour Energy and friends' $US4.98 ($6.63) a share bid, and try to squeeze a little extra out of the bidder. "In any event, we believe a Board rejection (which is essentially certain) will not be the end of Harbour," Macquarie told clients on Friday morning. "We expect Harbour to continue slogging away on due diligence and FIRB approvals, whilst working with the Board on an offer that will result in a Board approved Scheme of Arrangement (SoA) at a higher price. "Using metrics of peer/oil price movements since the pre-offer market in November, we believe the new offer could be in the range of ~A$6.80-7.20/sh." Santos shares were up 3¢ to $6.23 on Friday morning. Harbour Energy and its partners returned with a $US4.98 a share bid on Thursday after six weeks inside Santos' dataroom. Santos has not accepted or rejected the bid. Macquarie analysts told clients the $US4.98 a share bid "could appear reasonable" based on recent trading by E&P large cap peers Oil Search and Woodside Petroleum since news of Harbour Energy's interest in Santos broke in November. However the analysts said such an approach failed to recognise gearing and operational improvements at Santos.
Westfield Corp Ltd (WFD):
Sir Frank Lowy’s international Westfield property empire is a step closer to being sold to French retail property company Unibail-Rodamco, with a meeting in Paris last night waving through their $30 billion merger deal. The overwhelming support from Unibail investors given last night is one of the final steps in the creation of a new global retail property giant holding €62bn ($97.3bn) worth of assets in 13 countries to be listed on the Euronext in Paris and Amsterdam, as well as having a secondary listing on the Australian Securities Exchange. More than 94 per cent of Unibail shares were voted in favour of the deal last night. Ahead of the meeting, Unibail-Rodamco said it had won approval to list the shares that will be created via its merger with Westfield Corporation on the ASX. The listing is expected to occur on May 31 and is also subject to a vote on the deal by Australian investors, with pundits tipping it would also be supported at that vote in Sydney next week.
Westpac Banking Corporation (WBC):
Westpac has appointed its chief corporate affairs manager Carolyn McCann to the newly created position of customer and corporate relations, where she will be “resolving customer issues” and “managing the bank’s relationship with customers and the broader community”. Ms McCann is currently the bank’s general manager of corporate affairs and sustainability, and the creation of the new role comes as Australia’s largest banks look to overhaul their behaviour as the royal commission continues to uncover uncomfortable scandals at the lenders. Westpac chief executive Brian Hartzer said the newly created customer and corporate relations division would open lines of communications with all of it’s the banks stakeholders so it could “identify and resolve the root causes of any new issues”. Westpac chief executive Brian Hartzer said, “Appointing a Group Executive to oversee our customer resolution teams, alongside our corporate affairs and sustainability functions, is an important step in meeting our commitment to delivering superior customer service.”
(Source: AIMS)
ANZ has sold its majority stake in a Cambodian joint venture in a move that further unwinds the bank’s exposure in the region. The sale of a 55 per cent stake in ANZ Royal Bank to Japanese financial house J Trust was booked at a $30 million loss. ANZ will continue to own its 55 per cent stake and manage the ANZ Royal business for up to 12 months as it transitions to J Trust. J Trust is a Japanese diversified financial holding company listed on the Tokyo Stock Exchange. Significantly, the sale removes a thorn in the side of ANZ just as all banks are coming under scrutiny in Australia. ANZ said its decision to sell the stake was in line with its ongoing strategic review of international partnerships, in order to simplify the business and operate wholly-owned institutional businesses in the region. In recent years ANZ chief Shayne Elliot has overseen sales of its stakes in Metrobank Card Corporation in the Philippines and Shanghai Rural Commercial Bank in China, as well as its Australian life insurance and superannuation businesses. This is a reversal of the “super regional” Asian growth strategy of previous chief executive Mike Smith.
Commonwealth Bank (CBA):
Commonwealth Bank chief risk officer David Cohen is in the frame to appear as a witness in the financial services royal commission, which kicks off its third round of hearings on loans to small- and medium-sized businesses on Monday. If Mr Cohen appears, he would be the second executive from a major-bank senior leadership team to face crossexamination at the royal commission. The first was National Australia Bank chief customer officer consumer and wealth Andrew Hagger, who appeared on April 23 in the last round of hearings on financial advice. It’s understood that CBA has prepared a witness statement for Mr Cohen on the second topic of the hearings — the approach of banks to enforcement, management and monitoring of loans to businesses. Cases studies on the topic will focus on CBA/BankWest and NAB.
CSL Limited (CSL):
Biotech giant CSL has lifted its full-year profit guidance, partly prompted by a severe flu season in the northern hemisphere, which drove up demand for vaccine. The blood products company (CSL) told the ASX it now expects its net profit after tax to be within the range of $US1.68 billion ($2.24bn) and $US1.71bn, up from between $US1.55bn and $US1.6bn previously forecast. Chief executive Paul Perreault noted better-than-expected sales of haemophilia treatment Idelvion and Haegarda, a therapy for patients with hereditary angioedema. “Furthermore, (flu vaccine) Seqirus is also performing well, following a severe northern hemisphere influenza season. “The phasing of investments in some of our clinical trials has also yielded a positive financial variance.” CSL shares hit a record high of $181.07 yesterday before closing 1.49 per cent lower at $175.69. It comes after the biotech giant in February booked a 35 per cent hike in first-half profit to $US1.086bn.
Fletcher Building Limited (FBU):
Fletcher Building has hired Macquarie Capital to sell its US-based Formica laminates business, according to sources. Investment banks were invited to pitch for a role last month selling the division of the Australian and New Zealand-listed building materials supplier. Fletcher (FBU) told the market in April that Formica was to be divested after writedowns on its major construction projects, which caused the Auckland-based group to breach its debt covenants and report losses. As a result, it needed to raise funds. However, much of Fletcher’s liquidity was boosted by a $NZ750m capital raising in April and the company says the divestment of Formica was also due to the findings of its strategic review, which determined Fletcher was better placed to focus on its key geographies of Australia and New Zealand. Private equity firms and US trade groups are seen as the most likely buyers. The business is worth about $1 billion, according to analysts. Fletcher acquired the business for $US700 million in 2007.
Godfreys Group Ltd (GFY):
John Johnston, the 99-year-old co-founder of Godfreys gained control of the stricken vacuum cleaner retailer on Friday after major shareholders signalled they would sell into his higher takeover offer. Mr Johnston moved well beyond the 50.1 per cent mark on Friday after promises by the fund manager behind two blocks of shares totalling almost 20 per cent of the company, to accept the offer. Mr Johnston's Arcade Finance had already secured 40.9 per cent of Godfreys by the close of trade on Thursday. The extra shares held by Kentgrove Capital and NGE Capital, both run by by David Lamm, will deliver Arcade control over Godfreys. The 99-year-old lifted his takeover offer on May 17 via his bidding vehicle Arcade Finance. Arcade raised the offer to 33.5¢ per share from the original 32¢ per share and also extended it by a further two weeks to a new closing date of June 7. Mr Johnston had been steadily gaining acceptances. At the start of his takeover bid on April 9 for the company, Mr Johnston owned 28 per cent of the group. Godfreys on May 9 warned of an alarming 27 per cent tumble in sales in the previous two weeks as it revealed a hefty profit downgrade of at least 30 per cent after a disastrous switch in its television advertising approach away from discount sales. The Godfreys board on May 9 recommended shareholders accept the offer.
Myer Holdings Ltd (MYR):
Billionaire rag trader Solomon Lew has again taken aim at troubled department store Myer, saying the company's entire future is at risk and called for the board to resign after outlining in a letter to fellow shareholders that they should be bracing for a fourth profit downgrade in coming months, as well as significant losses come September. The chairman of Premier Investments, Myer's the biggest shareholder, again called for the dismissal of executive chairman Gary Hounsell, who on Wednesday revealed another disaster with sales for the financial year to date down 3.4 per cent. This sales decline is despite the extreme discounting program that Myer has been running for the past three months, Mr Lew added. Australia's largest department store chain reported its sixth consecutive fall in same-store sales this week and has issued three profit warnings since July 2017. Mr Lew has been a thorn in the side of Myer since Premier acquired a 10.8 per cent stake in March 2017 at $1.15 a share and has been threatening for more than six months to roll the board via an extraordinary general meeting. Same-store sales fell 3.1 per cent in the April quarter, a slight improvement on the 3.6 per cent decline in the allimportant January quarter but worse than the 2 per cent fall in the year-ago period. Analysts had expected same-store sales to fall about 3.5 per cent.
Santos Ltd (STO):
Harbour Energy could return with a new bid valuing Santos at $6.80 to $7.20 a share. That's the view of Macquarie analysts who reckon Santos' board will reject Harbour Energy and friends' $US4.98 ($6.63) a share bid, and try to squeeze a little extra out of the bidder. "In any event, we believe a Board rejection (which is essentially certain) will not be the end of Harbour," Macquarie told clients on Friday morning. "We expect Harbour to continue slogging away on due diligence and FIRB approvals, whilst working with the Board on an offer that will result in a Board approved Scheme of Arrangement (SoA) at a higher price. "Using metrics of peer/oil price movements since the pre-offer market in November, we believe the new offer could be in the range of ~A$6.80-7.20/sh." Santos shares were up 3¢ to $6.23 on Friday morning. Harbour Energy and its partners returned with a $US4.98 a share bid on Thursday after six weeks inside Santos' dataroom. Santos has not accepted or rejected the bid. Macquarie analysts told clients the $US4.98 a share bid "could appear reasonable" based on recent trading by E&P large cap peers Oil Search and Woodside Petroleum since news of Harbour Energy's interest in Santos broke in November. However the analysts said such an approach failed to recognise gearing and operational improvements at Santos.
Westfield Corp Ltd (WFD):
Sir Frank Lowy’s international Westfield property empire is a step closer to being sold to French retail property company Unibail-Rodamco, with a meeting in Paris last night waving through their $30 billion merger deal. The overwhelming support from Unibail investors given last night is one of the final steps in the creation of a new global retail property giant holding €62bn ($97.3bn) worth of assets in 13 countries to be listed on the Euronext in Paris and Amsterdam, as well as having a secondary listing on the Australian Securities Exchange. More than 94 per cent of Unibail shares were voted in favour of the deal last night. Ahead of the meeting, Unibail-Rodamco said it had won approval to list the shares that will be created via its merger with Westfield Corporation on the ASX. The listing is expected to occur on May 31 and is also subject to a vote on the deal by Australian investors, with pundits tipping it would also be supported at that vote in Sydney next week.
Westpac Banking Corporation (WBC):
Westpac has appointed its chief corporate affairs manager Carolyn McCann to the newly created position of customer and corporate relations, where she will be “resolving customer issues” and “managing the bank’s relationship with customers and the broader community”. Ms McCann is currently the bank’s general manager of corporate affairs and sustainability, and the creation of the new role comes as Australia’s largest banks look to overhaul their behaviour as the royal commission continues to uncover uncomfortable scandals at the lenders. Westpac chief executive Brian Hartzer said the newly created customer and corporate relations division would open lines of communications with all of it’s the banks stakeholders so it could “identify and resolve the root causes of any new issues”. Westpac chief executive Brian Hartzer said, “Appointing a Group Executive to oversee our customer resolution teams, alongside our corporate affairs and sustainability functions, is an important step in meeting our commitment to delivering superior customer service.”
(Source: AIMS)
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