Automotive Holdings Group Ltd (AHG):
A liquidity crunch within the Chinese conglomerate that owns a stake in Virgin Australia has torpedoed a $400 million deal to buy a refrigerated logistics business from Australia’s largest car dealer. The Perth-based Automotive Holdings Group said HNA Group terminated a deal announced in November to buy the division. The aviation, hotel and logistics giant has been under pressure to purge assets and trim its debt pile after an acquisition spree. Shares in AHG, which were trading at a 2018 high of $3.80 in March, fell as much as 10.9 per cent in intraday trading and closed down 25c, or 8.8 per cent, at $2.60. AHG managing director John McConnell said yesterday he was “disappointed” with the outcome. It followed months of negotiations with the Chinese company that also has a 19 per cent stake in the Virgin Australia airline. The collapse of the deal followed liquidity problems faced by HNA and delays in the approvals process with the Foreign Investment Review Board, according to Mr McConnell.
Blue Sky Alternative Investments Ltd (BLA):
Shares in Blue Sky Alternative Investments took a hit yesterday after the embattled investment manager revealed it is being investigated by the Australian Securities & Investments Commission over its continuous disclosure obligations. In a statement to the ASX, Blue Sky said it had been issued with a Section 33 notice from the corporate regulator on June 13. “This notice was marked by ASIC to be ‘Treated as in Confidence’,” Blue Sky said, in an apparent reference to its delayed disclosure of the investigation to the market. ASIC has requested Blue Sky provide it with information related to its disclosures over a 2½-year period, from January 2016 to June 12 of this year. “The ASIC notice states that it should not be construed as an indication by ASIC that a contravention of the law had occurred, nor a reflection on any person or entity. Blue Sky is fully co-operating with this request for information,” Blue Sky said. ASIC will pore over Blue Sky’s books to assess its compliance with section 674 of the Corporations Act 2001
Clearview Wealth Ltd (CVW):
Telephone sales staff at independent life insurer ClearView Wealth benefited from a cultural anomaly among Indigenous Australians known as “gratuitous concurrence”, which helped shunt numerous Aboriginal and Torres Strait Islander people into products they didn’t want, the royal commission has heard. Nathan Boyle, an analyst with the Australian Securities & Investments Commission’s indigenous Outreach Program, told the royal commission Aboriginal consumers often were tripped up in their dealings as financial customers due to a phenomenon known as gratuitous concurrence. That is where there is a tendency for Aboriginal people to agree to a proposition that is put to them, whether or not they actually agree with the proposition. Mr Boyle said Aboriginal people often replied “yes” to a question they didn’t understand, in a bid to avoid appearing “silly”. “People will agree yes, even to a question that they don’t know what is being asked,” Mr Boyle said.
Domain Holdings Australia Ltd (DHG):
Google managing director Jason Pellegrino has been appointed incoming chief executive for real estate listings company Domain. Mr Pellegrino, who will join Domain (DHG) at the end of August, has held a number of leadership positions at Google since joining the company in 2008, including managing director of its Australia and New Zealand operations. Mr Pellegrino will be paid $1.2 million including super in his new role and will receive a $500,000 cash sign on bonus, as well as $2m worth of shares in Domain. This is the same package that former CEO Antony Catalano was on. “We are delighted to have Jason join Domain as CEO,” chairman Nick Falloon said. “Jason’s career as a digital executive with deep experience in sales, strategy, operations and product and technology speaks for itself. His leadership acumen and track record for inspiring and driving performance at Google will greatly assist him to take Domain, and its many talented people, into an exciting next stage of growth.”
Gateway Lifestyle Group (GTY):
The takeover battle for Gateway Lifestyle Group is coming to a head with US giant Hometown yesterday formally launching a takeover offer for the $713 million manufactured home estates company. The US group is battling for control of the company against Canada’s Brookfield, the bid comes after weeks of indicative offers from both suitors. Hometown’s cash takeover for Gateway is priced at $2.25 a share, putting it just ahead of an earlier proposal by Brookfield. The US group’s offer could also be sweetened to $2.30 a share, if it wins a recommendation from the target’s board.
InvoCare Ltd (IVC):
InvoCare has announced this morning that it has entered into a conditional sales agreement to acquire Albury Wodonga based funeral and cremation services business Lester & Son. Martin Earp, InvoCare's CEO and managing director said: "Lester & Son provides us with an exciting opportunity to build on our regional strategy by providing us with significant access to a highly attractive market through a well-recognised and market leading brand. The Lester & Son team have established a strong business in the area and we are delighted to have the opportunity to build on their success in Albury-Wodonga and surrounding areas. We warmly welcome the team and the local community into our business." The Lester & Son acquisition is the fifth acquisition for the calender year and is likely to be competed by the end of July.
Macquarie Group Ltd (MQG):
Macquarie Bank has announced it will terminate the controversial business of ‘grandfathered product commissions’ in its wealth operations — the decision follows a similar move by fund manager BT last month. Banks are expecting grandfathered commissions could ultimately be outlawed by the Royal Commission into banking. ‘Grandfathering’ is the practice of continuing or running down a former line of business activity after laws in the area have changed. In wealth management trailing commissions are the most notorious branch of grandfathering. Though financial advice reforms introduced in 2014 were meant to end commissions in financial advice, trailing commissions were allowed to continue under grandfathering arrangements. Under trailing commission arrangements customers may pay an ongoing fee to advisers for years after financial advice has been given. There are almost half a million accounts still affected by grandfathering accounts across the Australian market. Macquarie says its move will benefit about 17,000 clients at the bank. The changes will commence in April next year.
Marley Spoon AGs (MMM):
Meal kit provider Marley Spoon fell as much as 20 per cent on its ASX debut yesterday. The company raised $70 million at $1.42 per Chess Depository Interest last month, but fell to as much as $1.135 within just 6 minutes of trade. At the close Marley Spoon had clawed back some lost ground to finish at $1.195. The German company provides fresh pre-portioned ingredients and recipes to customers through a weekly online subscription. The company reported losses of €28.5 million ($45m) in the last calendar year, and forecasts losses of €25m for 2018. Of the funds raised under the issue, $44.7m will bolster the company’s balance sheet — what was $3.67m at the end of December, and $18.5m will be used for debt repayment.
Woolworths Group Ltd (WOW):
Woolworths could find it tougher to resist price hikes from their grocery suppliers, which could spill over into higher prices on the supermarket shelf, after a review of the grocery industry’s code of conduct recommended suppliers gain the right to refuse to open their books to the chains when asking for a price rise and that supermarkets take no longer than 30 days to consider a price rise request. Previously when a supplier sought price increases for their products their accounts, financial records and key commercial information relating to their own costs could be viewed by the supermarkets as they argued for a price rise. These negotiations could also drag on for more than a year, slowing down the process.
(Source: AIMS)
A liquidity crunch within the Chinese conglomerate that owns a stake in Virgin Australia has torpedoed a $400 million deal to buy a refrigerated logistics business from Australia’s largest car dealer. The Perth-based Automotive Holdings Group said HNA Group terminated a deal announced in November to buy the division. The aviation, hotel and logistics giant has been under pressure to purge assets and trim its debt pile after an acquisition spree. Shares in AHG, which were trading at a 2018 high of $3.80 in March, fell as much as 10.9 per cent in intraday trading and closed down 25c, or 8.8 per cent, at $2.60. AHG managing director John McConnell said yesterday he was “disappointed” with the outcome. It followed months of negotiations with the Chinese company that also has a 19 per cent stake in the Virgin Australia airline. The collapse of the deal followed liquidity problems faced by HNA and delays in the approvals process with the Foreign Investment Review Board, according to Mr McConnell.
Blue Sky Alternative Investments Ltd (BLA):
Shares in Blue Sky Alternative Investments took a hit yesterday after the embattled investment manager revealed it is being investigated by the Australian Securities & Investments Commission over its continuous disclosure obligations. In a statement to the ASX, Blue Sky said it had been issued with a Section 33 notice from the corporate regulator on June 13. “This notice was marked by ASIC to be ‘Treated as in Confidence’,” Blue Sky said, in an apparent reference to its delayed disclosure of the investigation to the market. ASIC has requested Blue Sky provide it with information related to its disclosures over a 2½-year period, from January 2016 to June 12 of this year. “The ASIC notice states that it should not be construed as an indication by ASIC that a contravention of the law had occurred, nor a reflection on any person or entity. Blue Sky is fully co-operating with this request for information,” Blue Sky said. ASIC will pore over Blue Sky’s books to assess its compliance with section 674 of the Corporations Act 2001
Clearview Wealth Ltd (CVW):
Telephone sales staff at independent life insurer ClearView Wealth benefited from a cultural anomaly among Indigenous Australians known as “gratuitous concurrence”, which helped shunt numerous Aboriginal and Torres Strait Islander people into products they didn’t want, the royal commission has heard. Nathan Boyle, an analyst with the Australian Securities & Investments Commission’s indigenous Outreach Program, told the royal commission Aboriginal consumers often were tripped up in their dealings as financial customers due to a phenomenon known as gratuitous concurrence. That is where there is a tendency for Aboriginal people to agree to a proposition that is put to them, whether or not they actually agree with the proposition. Mr Boyle said Aboriginal people often replied “yes” to a question they didn’t understand, in a bid to avoid appearing “silly”. “People will agree yes, even to a question that they don’t know what is being asked,” Mr Boyle said.
Domain Holdings Australia Ltd (DHG):
Google managing director Jason Pellegrino has been appointed incoming chief executive for real estate listings company Domain. Mr Pellegrino, who will join Domain (DHG) at the end of August, has held a number of leadership positions at Google since joining the company in 2008, including managing director of its Australia and New Zealand operations. Mr Pellegrino will be paid $1.2 million including super in his new role and will receive a $500,000 cash sign on bonus, as well as $2m worth of shares in Domain. This is the same package that former CEO Antony Catalano was on. “We are delighted to have Jason join Domain as CEO,” chairman Nick Falloon said. “Jason’s career as a digital executive with deep experience in sales, strategy, operations and product and technology speaks for itself. His leadership acumen and track record for inspiring and driving performance at Google will greatly assist him to take Domain, and its many talented people, into an exciting next stage of growth.”
Gateway Lifestyle Group (GTY):
The takeover battle for Gateway Lifestyle Group is coming to a head with US giant Hometown yesterday formally launching a takeover offer for the $713 million manufactured home estates company. The US group is battling for control of the company against Canada’s Brookfield, the bid comes after weeks of indicative offers from both suitors. Hometown’s cash takeover for Gateway is priced at $2.25 a share, putting it just ahead of an earlier proposal by Brookfield. The US group’s offer could also be sweetened to $2.30 a share, if it wins a recommendation from the target’s board.
InvoCare Ltd (IVC):
InvoCare has announced this morning that it has entered into a conditional sales agreement to acquire Albury Wodonga based funeral and cremation services business Lester & Son. Martin Earp, InvoCare's CEO and managing director said: "Lester & Son provides us with an exciting opportunity to build on our regional strategy by providing us with significant access to a highly attractive market through a well-recognised and market leading brand. The Lester & Son team have established a strong business in the area and we are delighted to have the opportunity to build on their success in Albury-Wodonga and surrounding areas. We warmly welcome the team and the local community into our business." The Lester & Son acquisition is the fifth acquisition for the calender year and is likely to be competed by the end of July.
Macquarie Group Ltd (MQG):
Macquarie Bank has announced it will terminate the controversial business of ‘grandfathered product commissions’ in its wealth operations — the decision follows a similar move by fund manager BT last month. Banks are expecting grandfathered commissions could ultimately be outlawed by the Royal Commission into banking. ‘Grandfathering’ is the practice of continuing or running down a former line of business activity after laws in the area have changed. In wealth management trailing commissions are the most notorious branch of grandfathering. Though financial advice reforms introduced in 2014 were meant to end commissions in financial advice, trailing commissions were allowed to continue under grandfathering arrangements. Under trailing commission arrangements customers may pay an ongoing fee to advisers for years after financial advice has been given. There are almost half a million accounts still affected by grandfathering accounts across the Australian market. Macquarie says its move will benefit about 17,000 clients at the bank. The changes will commence in April next year.
Marley Spoon AGs (MMM):
Meal kit provider Marley Spoon fell as much as 20 per cent on its ASX debut yesterday. The company raised $70 million at $1.42 per Chess Depository Interest last month, but fell to as much as $1.135 within just 6 minutes of trade. At the close Marley Spoon had clawed back some lost ground to finish at $1.195. The German company provides fresh pre-portioned ingredients and recipes to customers through a weekly online subscription. The company reported losses of €28.5 million ($45m) in the last calendar year, and forecasts losses of €25m for 2018. Of the funds raised under the issue, $44.7m will bolster the company’s balance sheet — what was $3.67m at the end of December, and $18.5m will be used for debt repayment.
Woolworths Group Ltd (WOW):
Woolworths could find it tougher to resist price hikes from their grocery suppliers, which could spill over into higher prices on the supermarket shelf, after a review of the grocery industry’s code of conduct recommended suppliers gain the right to refuse to open their books to the chains when asking for a price rise and that supermarkets take no longer than 30 days to consider a price rise request. Previously when a supplier sought price increases for their products their accounts, financial records and key commercial information relating to their own costs could be viewed by the supermarkets as they argued for a price rise. These negotiations could also drag on for more than a year, slowing down the process.
(Source: AIMS)
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