AGL Energy Ltd (AGL):
AGL Energy's proposal to import LNG into Victoria is understood to be driving a push to force a restructuring of the utility or impose conditions around the plant's operations amid worries it will only cement the company's strong market position in the state suffering most from high gas prices. The debate around the impact of the proposed $250 million Crib Point LNG import terminal comes as investors have started to worry about a political push for a break-up of AGL, despite uncertainty how this could be pursued. The discussion has gained fresh momentum from the public attention over the retailer's role in contributing to the tight east coast gas market and ahead of a competition watchdog report later this month that is expected to shine the spotlight on the market power of vertically integrated electricity suppliers. The federal government has already tried to force AGL to sell - rather than close - its Liddell coal generator in NSW. "Given the environment that we have, any negative sentiment in that report can obviously be expected to be used in that context," a source close to AGL said.
BHP Billiton Limited (BHP):
BHP Billiton said on Tuesday that it has agreed to sell its Cerro Colorado copper mine in Chile to private-equity manager EMR Capital for up to $US320 million ($434m). The dual-listed mining company (BHP) said that it will be paid $US230m in cash when the transaction closes in the fourth quarter of 2018. The company will also receive $US40m in proceeds from the post-close sale of parts of Cerro Colorado’s copper inventory, and a payment of up to $US50m depending on the performance of copper prices.
Boral Limited (BLD):
Kathryn Fagg has been appointed chairman of Boral, succeeding Dr Brian Clark who will retire on June 30 for health reasons. Ms Fagg joined the board of Boral in September 2014 and holds positions on the boards of Incitec Pivot and Djerriwarrh Investments. She is the current president of Chief Executive Women and recently completed a five-year term as a director of the Reserve Bank of Australia. “I will retire from Boral in the full knowledge that the company is in extremely capable hands under the stewardship of Kathryn as chairman,” Dr Clark said. “Kathryn has been a valued board member and as chairman of the remuneration & nomination committee, she has been very effective in engaging with investors and other stakeholders and working to align the shared interests of Boral’s executives with those of shareholders.” Dr Clark joined Boral in 2007 and was appointed chairman in 2015. At the company’s 2017 annual general meeting, he announced his intention to retire before the end of his term, but today said he had brought his retirement forward to focus on his health.
Commonwealth Bank of Australia (CBA):
The Federal Court has approved the Commonwealth Bank of Australia's $700 million settlement with AUSTRAC over anti-money laundering allegations. On Wednesday, Justice David Yates said $700 million was an appropriate penalty considering a number of factors, including the absence of past similar conduct, the bank's size and financial position, the conduct of the bank's board and senior management and the bank's contrition and remorse. "It marks the court's strong disapproval of the bank's conduct," he said. Justice Yates said the $700 million will achieve specific deterrence and will also strongly deter others from breaching anti-money laundering laws. "I congratulate the parties on being able to achieve this resolution," Justice Yates said.
Genex Power Ltd (GNX):
The Turnbull government's $5 billion Northern Australia Infrastructure Facility has finally flagged a significant funding allocation with a $516 million loan to Genex Power's Kidston large-scale solar and hydro project in North Queensland. Amid much criticism about the slow pace of NAIF allocating funding to big projects and a hasty re-drafting of its investment guidelines, the NAIF announced on Wednesday it was giving conditional backing to the second stage of the much-hyped Genex Kidston project which will use an old gold mine for a pumped hydro project, supported by wind and solar projects. The proposed Genex funding is the most significant investment decision so far from the NAIF and will be a significant legs-up for the listed Genex Power's planned $1 billion renewables hub in North Queensland. Genex said NAIF had agreed to an indicative term sheet for a long-term concessional debt facility of up to $516 million for the stage two of the Kidston project. This will let them secure funding for the rest of the project and hopefully reach financial close by the end of the year. But the secured, subordinated loan is subject to a string of conditions imposed by NAIF including Genex negotiating off-take arrangements and grid connection for their project; finishing a cost-benefit analysis, finalising terms for senior debt funding, securing the balance of equity funding and due diligence on a range of project matters. The loan is still subject to final NAIF credit approval and the NAIF board's investment decision.
Mcgrath Ltd (MEA):
Chinese real estate giant Aqualand has dramatically swooped on a 15 per cent stake in struggling Sydney real estate agency McGrath in one of the first moves by a mainland-backed property developer with a local listed property company. McGrath shares soared on the news, climbing 17.65 per cent in morning trade to 40c. Aqualand, which forged into the Australian market five years ago, building up an empire of about 18 office blocks and development sites, has signalled that it is keen to support McGrath’s recovery. The listed real estate agency made a placement of 25.19 million shares at 42.5c per share that will take place in two tranches, with the second tranche of about 11.57 million shares subject to ordinary shareholder approval. The placement price shows Aqualand’s confidence in the company and was at a 25 per cent premium to the last closing price of McGrath stock. Once both tranches are issued Aqualand will be the second largest shareholder of McGrath, behind founder John McGrath, who has about 27 per cent. McGrath and Aqualand have also entered into a “strategic relationship” to explore opportunities for both groups to work more closely together on prestige project marketing opportunities
Telstra Corporation Ltd (TLS):
Telstra will shed over 8000 jobs the next three years and split its infrastructure and mobile business as the telco moves to slash an additional $1 billion of costs by 2022. Telstra’s makeover will involve the slashing of more than 8000 jobs over the next three years, with executive and management roles to bear the brunt of the cuts. The flagged job cuts will make an appreciable dent on Telstra’s total workforce of 32,000 employees. The last major cut to Telstra’s overall workforce came in June 2017 when it cut 1400 jobs. “We are creating a new Telstra that is able to continue to lead the market,” Mr Penn said. “In the future our workforce will be a smaller, knowledge-based one with a structure and way of working that is agile enough to deal with rapid change. This means that some roles will no longer be required, some will change and there will also be new ones created.” The reduction in workforce will come as Telstra consolidates all of its back office processes into the Telstra Global Business Services group. According to Telstra the restructure should deliver an overall reduction in labour costs of around 30 per cent and the telco has announced two new programs to assist affected employees. A ‘Transitions Program’ will provide outplacement support for employees let go, as well as providing support for existing workers to upskill and adjust to a leaner and more agile organisational structure.
Viva Energy:
The market value range for Viva Energy has been fixed at between $4.8 billion and $5.2bn ahead of its initial public offering next month, making it Australia’s biggest initial public offering since 2014. It equates to a share price range of between $2.50 and $2.65 per share and comes after investors committed $1.3bn worth of cornerstone support towards the bottom of the price range at $2.50 per share. The IPO of the refinery, fuel supply and petrol stations business is expected to raise between $2.9bn and $3.1bn for its owners, led by global energy trader Vitol SA, when it lists on July 13. The pricing equates to between 6.5 and 7 times earnings before interest, tax, depreciation and amortisation. Caltex trades at around 7.5 times EBITDA and fund managers have argued that shares in the petrol retailer and oil refiner Viva should be sold at a discount to Caltex. The pricing range comes after The Australian first revealed that the value of the company was to be set somewhere between 6.5 and 7.5 times EBITDA — below analyst valuation estimates that were as high as 9 times. The company’s prospectus is out today. Vitol and its partners expect to hold on to between 40 per cent and 50 per cent of the total shares in Viva following the offer, according to float documents released on Wednesday. The prospectus was not clear on the firm’s major shareholders, though Vitol will remain the largest holder and it is understood Abu Dhabi’s sovereign wealth fund also retains a position.
(Source: AIMS)
AGL Energy's proposal to import LNG into Victoria is understood to be driving a push to force a restructuring of the utility or impose conditions around the plant's operations amid worries it will only cement the company's strong market position in the state suffering most from high gas prices. The debate around the impact of the proposed $250 million Crib Point LNG import terminal comes as investors have started to worry about a political push for a break-up of AGL, despite uncertainty how this could be pursued. The discussion has gained fresh momentum from the public attention over the retailer's role in contributing to the tight east coast gas market and ahead of a competition watchdog report later this month that is expected to shine the spotlight on the market power of vertically integrated electricity suppliers. The federal government has already tried to force AGL to sell - rather than close - its Liddell coal generator in NSW. "Given the environment that we have, any negative sentiment in that report can obviously be expected to be used in that context," a source close to AGL said.
BHP Billiton Limited (BHP):
BHP Billiton said on Tuesday that it has agreed to sell its Cerro Colorado copper mine in Chile to private-equity manager EMR Capital for up to $US320 million ($434m). The dual-listed mining company (BHP) said that it will be paid $US230m in cash when the transaction closes in the fourth quarter of 2018. The company will also receive $US40m in proceeds from the post-close sale of parts of Cerro Colorado’s copper inventory, and a payment of up to $US50m depending on the performance of copper prices.
Boral Limited (BLD):
Kathryn Fagg has been appointed chairman of Boral, succeeding Dr Brian Clark who will retire on June 30 for health reasons. Ms Fagg joined the board of Boral in September 2014 and holds positions on the boards of Incitec Pivot and Djerriwarrh Investments. She is the current president of Chief Executive Women and recently completed a five-year term as a director of the Reserve Bank of Australia. “I will retire from Boral in the full knowledge that the company is in extremely capable hands under the stewardship of Kathryn as chairman,” Dr Clark said. “Kathryn has been a valued board member and as chairman of the remuneration & nomination committee, she has been very effective in engaging with investors and other stakeholders and working to align the shared interests of Boral’s executives with those of shareholders.” Dr Clark joined Boral in 2007 and was appointed chairman in 2015. At the company’s 2017 annual general meeting, he announced his intention to retire before the end of his term, but today said he had brought his retirement forward to focus on his health.
Commonwealth Bank of Australia (CBA):
The Federal Court has approved the Commonwealth Bank of Australia's $700 million settlement with AUSTRAC over anti-money laundering allegations. On Wednesday, Justice David Yates said $700 million was an appropriate penalty considering a number of factors, including the absence of past similar conduct, the bank's size and financial position, the conduct of the bank's board and senior management and the bank's contrition and remorse. "It marks the court's strong disapproval of the bank's conduct," he said. Justice Yates said the $700 million will achieve specific deterrence and will also strongly deter others from breaching anti-money laundering laws. "I congratulate the parties on being able to achieve this resolution," Justice Yates said.
Genex Power Ltd (GNX):
The Turnbull government's $5 billion Northern Australia Infrastructure Facility has finally flagged a significant funding allocation with a $516 million loan to Genex Power's Kidston large-scale solar and hydro project in North Queensland. Amid much criticism about the slow pace of NAIF allocating funding to big projects and a hasty re-drafting of its investment guidelines, the NAIF announced on Wednesday it was giving conditional backing to the second stage of the much-hyped Genex Kidston project which will use an old gold mine for a pumped hydro project, supported by wind and solar projects. The proposed Genex funding is the most significant investment decision so far from the NAIF and will be a significant legs-up for the listed Genex Power's planned $1 billion renewables hub in North Queensland. Genex said NAIF had agreed to an indicative term sheet for a long-term concessional debt facility of up to $516 million for the stage two of the Kidston project. This will let them secure funding for the rest of the project and hopefully reach financial close by the end of the year. But the secured, subordinated loan is subject to a string of conditions imposed by NAIF including Genex negotiating off-take arrangements and grid connection for their project; finishing a cost-benefit analysis, finalising terms for senior debt funding, securing the balance of equity funding and due diligence on a range of project matters. The loan is still subject to final NAIF credit approval and the NAIF board's investment decision.
Mcgrath Ltd (MEA):
Chinese real estate giant Aqualand has dramatically swooped on a 15 per cent stake in struggling Sydney real estate agency McGrath in one of the first moves by a mainland-backed property developer with a local listed property company. McGrath shares soared on the news, climbing 17.65 per cent in morning trade to 40c. Aqualand, which forged into the Australian market five years ago, building up an empire of about 18 office blocks and development sites, has signalled that it is keen to support McGrath’s recovery. The listed real estate agency made a placement of 25.19 million shares at 42.5c per share that will take place in two tranches, with the second tranche of about 11.57 million shares subject to ordinary shareholder approval. The placement price shows Aqualand’s confidence in the company and was at a 25 per cent premium to the last closing price of McGrath stock. Once both tranches are issued Aqualand will be the second largest shareholder of McGrath, behind founder John McGrath, who has about 27 per cent. McGrath and Aqualand have also entered into a “strategic relationship” to explore opportunities for both groups to work more closely together on prestige project marketing opportunities
Telstra Corporation Ltd (TLS):
Telstra will shed over 8000 jobs the next three years and split its infrastructure and mobile business as the telco moves to slash an additional $1 billion of costs by 2022. Telstra’s makeover will involve the slashing of more than 8000 jobs over the next three years, with executive and management roles to bear the brunt of the cuts. The flagged job cuts will make an appreciable dent on Telstra’s total workforce of 32,000 employees. The last major cut to Telstra’s overall workforce came in June 2017 when it cut 1400 jobs. “We are creating a new Telstra that is able to continue to lead the market,” Mr Penn said. “In the future our workforce will be a smaller, knowledge-based one with a structure and way of working that is agile enough to deal with rapid change. This means that some roles will no longer be required, some will change and there will also be new ones created.” The reduction in workforce will come as Telstra consolidates all of its back office processes into the Telstra Global Business Services group. According to Telstra the restructure should deliver an overall reduction in labour costs of around 30 per cent and the telco has announced two new programs to assist affected employees. A ‘Transitions Program’ will provide outplacement support for employees let go, as well as providing support for existing workers to upskill and adjust to a leaner and more agile organisational structure.
Viva Energy:
The market value range for Viva Energy has been fixed at between $4.8 billion and $5.2bn ahead of its initial public offering next month, making it Australia’s biggest initial public offering since 2014. It equates to a share price range of between $2.50 and $2.65 per share and comes after investors committed $1.3bn worth of cornerstone support towards the bottom of the price range at $2.50 per share. The IPO of the refinery, fuel supply and petrol stations business is expected to raise between $2.9bn and $3.1bn for its owners, led by global energy trader Vitol SA, when it lists on July 13. The pricing equates to between 6.5 and 7 times earnings before interest, tax, depreciation and amortisation. Caltex trades at around 7.5 times EBITDA and fund managers have argued that shares in the petrol retailer and oil refiner Viva should be sold at a discount to Caltex. The pricing range comes after The Australian first revealed that the value of the company was to be set somewhere between 6.5 and 7.5 times EBITDA — below analyst valuation estimates that were as high as 9 times. The company’s prospectus is out today. Vitol and its partners expect to hold on to between 40 per cent and 50 per cent of the total shares in Viva following the offer, according to float documents released on Wednesday. The prospectus was not clear on the firm’s major shareholders, though Vitol will remain the largest holder and it is understood Abu Dhabi’s sovereign wealth fund also retains a position.
(Source: AIMS)
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