AMP Limited (AMP):
The corporate watchdog has revealed it is consulting with the Commonwealth Director of Public Prosecutions in relation to its investigation into wealth management group AMP. Appearing before the House of Representatives economics committee on Friday, Australian Securities & Investments Commission head of enforcement Tim Mullaly said the regulator was “consulting with the DPP” on its AMP investigation as its combs through more than 600,000 documents it received from the group over the last month. ASIC conducts some prosecutions of minor criminal matters but refers more serious matters to the CDPP, which conducts those prosecutions in court. Mr Mullaly said ASIC would be in a position to finalise its investigation into AMP by about September. ASIC chairman James Shipton said there was “a very limited amount” he could reveal about the status of the investigation. But Mr Shipton said ASIC was “not surprised at all” by the testimony heard in the royal commission. “They were part of a long sophisticated investigation that we intend to carry on and carry through,” Mr Shipton said. At the banking royal commission, senior counsel assisting Rowena Orr QC had asked commissioner Kenneth Hayne to decide crimes were committed by AMP.
APN Outdoor Group Ltd (APO):
APN Outdoor has abandoned plans for a capital raising to buy Adshel and has instead put forward a $540 million cash and scrip offer for the advertising business owned by Here There and Everywhere. APN will offer $230m of cash for Adshel and 54.1 million of its own shares. The price equates to 11 times its earnings and offers $15m of synergies. The company released a statement to the Australian Securities Exchange this morning on the revised offer which is higher than its earlier offer worth $500m. It comes as JCDecaux launched a $1.1 billion takeover bid for APN Outdoor on the condition it did not buy Adshel. The move by JCDecaux is seen as an attempt to protect its market position in Australia with APN a far greater threat with Adshel within its stable. Sources are tipping that JCDecaux may put forward a higher bid with APN Outdoor valuing the bid as too low.
Australia and New Zealand Banking Group (ANZ):
ANZ Bank will double the scale of its proposed share buyback program to $3 billion as cash rolls in from a string of asset sales. The bank said in a statement to the ASX this morning it would add another $1.5bn to the buybacks that began in the middle of January after receiving about $1bn in reinsurance proceeds as part of the first tranche from the sale of its Australian life insurance business. Chief financial officer Michelle Jablko said the bank was in a position to return surplus capital to its shareholders while retaining the flexibility to invest in the business and maintain strong capital buffers. ANZ’s closely watched common equity Tier 1 capital ratio stood at just over 11 per cent at the end of March, ahead of a minimum 10.5 per cent benchmark set by prudential regulator. It said the rate would be 11.6 per cent on a pro forma basis, after accounting for the remaining $1.6 billion in its planned share repurchases and the proceeds received and yet to be collected from asset disposals.
Aveo GROUP (AOG):
Retirement home operator Aveo has upgraded its full-year earnings forecast on the back of higher-than-expected development profits at its flagship retirement community development at Newstead in Brisbane. Aveo expects to book an underlying earnings per share of 21.6 cents per security, up from the previous guidance of 20.4 cents per share, when it announces it full-year results in August. “Aveo’s non-retirement business continues to be sold down and contribute a lower proportion of Aveo’s overall earnings,” the company said in a statement to the ASX this morning. Aveo also announced that the estimated dividend for the year ended June 30 will be 9 cents per stapled security, within its guidance of paying 40 to 60 per cent of underlying profit after tax back to shareholders. The company said it had previously expected to have about 550 new units on its balance sheet at June 30 but its latest forecast is 565. “Given the recent slowing in the residential market in most Australian states, the board believes it is prudent to reduce forecast fiscal year 2019 new units delivered from the annual target of 500 to 418,” Aveo said.
Credit Corp Group Limited (CCP):
Credit Corp’s shares have plummeted more than 22 per cent after it rebuffed claims raised in an “anonymous report” critical of its business model. The lender and debt collector placed its shares in a trading halt yesterday following the publication on Wednesday of a report by an organisation called Checkmate Research that said it was a “wolf in sheep’s clothing” and argued it was a payday lender. The Checkmate report did not include any disclosures or identify the authors. Credit Corp today refuted the claims made in the report, saying it was “not credible” and that it “comprehensively rejects the assertions made”. The report argued that Credit Corp’s Wallet Wizard business relied on a loophole in legislation to avoid being designated a payday lender. “As a result, Credit Corp avoids increased regulatory scrutiny and has access to cheap bank funding (unlike other payday lenders),” Checkmate said. “Despite the commitment to pull financing from payday lenders, Westpac continues financing Credit Corp. In our view, to protect its reputation, Westpac has to pull funding from Credit Corp,” it said. In a statement to the ASX, Credit Corp said that none if its activities fit the ASIC definition of a payday lender and that it operates ethically. The company also reaffirmed its earnings outlook for the year to end June of NPAT growth up 16 per cent.
GODFREYS GROUP LIMITED (GFY):
Godfreys will soon be wholly owned by its 99-year old co-founder after his stake in the company reached the 90 per cent mark, allowing him to compulsorily acquire the remaining shares in the vacuum retailer. Arcade Finance, the investment vehicle of John Johnston who co-founded the vacuum retailer with Godfrey Cohen in the 1930s, made a takeover bid for the company in April and proposed a delisting in order to undertake an overhaul of the business and restore its value. Godfreys shareholders who have not yet accepted Arcade’s offer of 33.5 cents per share will have until June 28, when the offer period closes, to do so. “Godfreys shareholders who accept the offer by this time will receive the consideration to which they are entitled for their Godfreys shares within seven days of their acceptance being received,” the company said in a statement this morning. “This is sooner than if they wait for those shares to be compulsorily acquired.” Godfreys has a $30 million senior debt facility with principal financier, 1918 Finance, which is also controlled by Mr Johnston. Today’s announcement follows a string of four profit warnings this year.
Michael Hill International Ltd (MHJ):
Jewellery chain Michael Hill will shut down its six remaining Emma & Roe stores, scrapping its plans to reposition the brand. The company announced the closure of 24 loss-making Emma & Roe stores in March following a brand review, but said it would reposition the remaining six stores and the Emma & Roe online store towards “demi-fine” jewellery. In a statement to the ASX this morning, Michael Hill said the closure of the remaining Emma & Roe stores will allow the company to redeploy capital and resources to the Michael Hill brand. “Following a strategic review we have decided that a singular focus on the Michael Hill brand will best position us to deliver a stronger customer proposition and financial results,” Michael Hill chief executive Phil Taylor said. “Management resource and capital that would have been required to reposition the Emma & Roe brand will instead be directed to our core business, Michael Hill.” The company said the cost of employee severance and lease termination of the remaining six stores is estimated to be no more than $3.1 million.
Telstra Corporation Ltd (TLS):
Telstra’s push to redraw its mobile plans could bring about a consolidation of the market as rivals look to sharpen their positions against a leaner, meaner leader, industry analysts say. By rebasing its pricing model and getting rid of excess data -charges, Telstra is sending a clear message to the competition that it can absorb a lot more pain than they might have expected. Telstra moved on Wednesday to radically simplify its plans, cutting the number of offerings from 1800 to 20 and removing excess data charges. The move will result in $500 million being written off revenues over three years. It will effectively mean all of Telstra’s mobile plans will provide unlimited data, although some may have speed restrictions after certain data quotas are reached. “Telstra strategy is just as much about managing its balance sheet as it’s about the competitive pressure, and the longer Telstra can wear the damage it might force the hand of its competitors to consolidate,” S&P Global analyst Graeme Ferguson told The Australian yesterday.
(Source: AIMS)
The corporate watchdog has revealed it is consulting with the Commonwealth Director of Public Prosecutions in relation to its investigation into wealth management group AMP. Appearing before the House of Representatives economics committee on Friday, Australian Securities & Investments Commission head of enforcement Tim Mullaly said the regulator was “consulting with the DPP” on its AMP investigation as its combs through more than 600,000 documents it received from the group over the last month. ASIC conducts some prosecutions of minor criminal matters but refers more serious matters to the CDPP, which conducts those prosecutions in court. Mr Mullaly said ASIC would be in a position to finalise its investigation into AMP by about September. ASIC chairman James Shipton said there was “a very limited amount” he could reveal about the status of the investigation. But Mr Shipton said ASIC was “not surprised at all” by the testimony heard in the royal commission. “They were part of a long sophisticated investigation that we intend to carry on and carry through,” Mr Shipton said. At the banking royal commission, senior counsel assisting Rowena Orr QC had asked commissioner Kenneth Hayne to decide crimes were committed by AMP.
APN Outdoor Group Ltd (APO):
APN Outdoor has abandoned plans for a capital raising to buy Adshel and has instead put forward a $540 million cash and scrip offer for the advertising business owned by Here There and Everywhere. APN will offer $230m of cash for Adshel and 54.1 million of its own shares. The price equates to 11 times its earnings and offers $15m of synergies. The company released a statement to the Australian Securities Exchange this morning on the revised offer which is higher than its earlier offer worth $500m. It comes as JCDecaux launched a $1.1 billion takeover bid for APN Outdoor on the condition it did not buy Adshel. The move by JCDecaux is seen as an attempt to protect its market position in Australia with APN a far greater threat with Adshel within its stable. Sources are tipping that JCDecaux may put forward a higher bid with APN Outdoor valuing the bid as too low.
Australia and New Zealand Banking Group (ANZ):
ANZ Bank will double the scale of its proposed share buyback program to $3 billion as cash rolls in from a string of asset sales. The bank said in a statement to the ASX this morning it would add another $1.5bn to the buybacks that began in the middle of January after receiving about $1bn in reinsurance proceeds as part of the first tranche from the sale of its Australian life insurance business. Chief financial officer Michelle Jablko said the bank was in a position to return surplus capital to its shareholders while retaining the flexibility to invest in the business and maintain strong capital buffers. ANZ’s closely watched common equity Tier 1 capital ratio stood at just over 11 per cent at the end of March, ahead of a minimum 10.5 per cent benchmark set by prudential regulator. It said the rate would be 11.6 per cent on a pro forma basis, after accounting for the remaining $1.6 billion in its planned share repurchases and the proceeds received and yet to be collected from asset disposals.
Aveo GROUP (AOG):
Retirement home operator Aveo has upgraded its full-year earnings forecast on the back of higher-than-expected development profits at its flagship retirement community development at Newstead in Brisbane. Aveo expects to book an underlying earnings per share of 21.6 cents per security, up from the previous guidance of 20.4 cents per share, when it announces it full-year results in August. “Aveo’s non-retirement business continues to be sold down and contribute a lower proportion of Aveo’s overall earnings,” the company said in a statement to the ASX this morning. Aveo also announced that the estimated dividend for the year ended June 30 will be 9 cents per stapled security, within its guidance of paying 40 to 60 per cent of underlying profit after tax back to shareholders. The company said it had previously expected to have about 550 new units on its balance sheet at June 30 but its latest forecast is 565. “Given the recent slowing in the residential market in most Australian states, the board believes it is prudent to reduce forecast fiscal year 2019 new units delivered from the annual target of 500 to 418,” Aveo said.
Credit Corp Group Limited (CCP):
Credit Corp’s shares have plummeted more than 22 per cent after it rebuffed claims raised in an “anonymous report” critical of its business model. The lender and debt collector placed its shares in a trading halt yesterday following the publication on Wednesday of a report by an organisation called Checkmate Research that said it was a “wolf in sheep’s clothing” and argued it was a payday lender. The Checkmate report did not include any disclosures or identify the authors. Credit Corp today refuted the claims made in the report, saying it was “not credible” and that it “comprehensively rejects the assertions made”. The report argued that Credit Corp’s Wallet Wizard business relied on a loophole in legislation to avoid being designated a payday lender. “As a result, Credit Corp avoids increased regulatory scrutiny and has access to cheap bank funding (unlike other payday lenders),” Checkmate said. “Despite the commitment to pull financing from payday lenders, Westpac continues financing Credit Corp. In our view, to protect its reputation, Westpac has to pull funding from Credit Corp,” it said. In a statement to the ASX, Credit Corp said that none if its activities fit the ASIC definition of a payday lender and that it operates ethically. The company also reaffirmed its earnings outlook for the year to end June of NPAT growth up 16 per cent.
GODFREYS GROUP LIMITED (GFY):
Godfreys will soon be wholly owned by its 99-year old co-founder after his stake in the company reached the 90 per cent mark, allowing him to compulsorily acquire the remaining shares in the vacuum retailer. Arcade Finance, the investment vehicle of John Johnston who co-founded the vacuum retailer with Godfrey Cohen in the 1930s, made a takeover bid for the company in April and proposed a delisting in order to undertake an overhaul of the business and restore its value. Godfreys shareholders who have not yet accepted Arcade’s offer of 33.5 cents per share will have until June 28, when the offer period closes, to do so. “Godfreys shareholders who accept the offer by this time will receive the consideration to which they are entitled for their Godfreys shares within seven days of their acceptance being received,” the company said in a statement this morning. “This is sooner than if they wait for those shares to be compulsorily acquired.” Godfreys has a $30 million senior debt facility with principal financier, 1918 Finance, which is also controlled by Mr Johnston. Today’s announcement follows a string of four profit warnings this year.
Michael Hill International Ltd (MHJ):
Jewellery chain Michael Hill will shut down its six remaining Emma & Roe stores, scrapping its plans to reposition the brand. The company announced the closure of 24 loss-making Emma & Roe stores in March following a brand review, but said it would reposition the remaining six stores and the Emma & Roe online store towards “demi-fine” jewellery. In a statement to the ASX this morning, Michael Hill said the closure of the remaining Emma & Roe stores will allow the company to redeploy capital and resources to the Michael Hill brand. “Following a strategic review we have decided that a singular focus on the Michael Hill brand will best position us to deliver a stronger customer proposition and financial results,” Michael Hill chief executive Phil Taylor said. “Management resource and capital that would have been required to reposition the Emma & Roe brand will instead be directed to our core business, Michael Hill.” The company said the cost of employee severance and lease termination of the remaining six stores is estimated to be no more than $3.1 million.
Telstra Corporation Ltd (TLS):
Telstra’s push to redraw its mobile plans could bring about a consolidation of the market as rivals look to sharpen their positions against a leaner, meaner leader, industry analysts say. By rebasing its pricing model and getting rid of excess data -charges, Telstra is sending a clear message to the competition that it can absorb a lot more pain than they might have expected. Telstra moved on Wednesday to radically simplify its plans, cutting the number of offerings from 1800 to 20 and removing excess data charges. The move will result in $500 million being written off revenues over three years. It will effectively mean all of Telstra’s mobile plans will provide unlimited data, although some may have speed restrictions after certain data quotas are reached. “Telstra strategy is just as much about managing its balance sheet as it’s about the competitive pressure, and the longer Telstra can wear the damage it might force the hand of its competitors to consolidate,” S&P Global analyst Graeme Ferguson told The Australian yesterday.
(Source: AIMS)
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