A2 Milk Company Ltd (A2M):
A2 Milk has confirmed its incoming chief executive Jayne Hrdlicka will take the reins on July 16. Ms Hrdlicka, who headed up Qantas’s loyalty division and was chief executive of its budget carrier Jetstar, will be paid $1.5 million in her new role as well as a one-off $586,666 cash payment, about 67 per cent of the short term cash incentive she was forced to forfeit when she resigned from her previous role. She will also receive 599,254 time based rights to acquire a2 Milk (A2M) shares, about 80 per cent of her forfeited short term and long term scrip benefit, to vest in four tranches during the period from August 28, 2018 to August 24, 2019. In December, a2 announced that Ms Hrdlicka would commence the role at the start of the 2019 financial year. That announcement came as the company was admitted into the S&P/ASX 100 Index as well as the S&P/NZX 10 Index.
Bendigo and Adelaide Bank Ltd (BEN):
Relationships between Bendigo Bank's top executives will be under renewed pressure following the publication of a cache of documents that reveals weaknesses in its systems and led a senior executive to contradict her former boss and criticise the bank's most senior risk officer in public. The documents were published by the Hayne royal commission late on Wednesday. Among them are an incendiary internal risk report that identifies systemic weaknesses as well as years of correspondence between the bank and the regulator APRA about issues within its credit department. R
Resolute Mining Limited (RSG):
Resolute Mining’s decision to invest in the automation of its Syama underground extension — a move that will both lower the production cost and extend the life of the gold mine — has received a big tick from the market, which has pushed Resolute higher over the past two days and punched its market capitalisation through the $1 billion mark. But it has also raised questions over how Resolute plans to cover the $US224 million ($303m) in upfront and ramp-up costs at Syama, up substantially from the $US108m capex forecast under the earlier conventional plan. And it has also got people thinking about whether Resolute is still in a position to act as a consolidator in the West African gold space. In recent months it has taken stakes in ASX-listed duo Oklo Resources and Mako Gold, which are exploring in Mali and Burkina Faso, respectively, as well as the Canadian-listed Democratic Republic of Congo explorer Loncor Resources.
Rio Tinto Limited (RIO):
Former Rio Tinto executive Stern Hu was released last night from a Shanghai prison where he had spent the past nine years for bribery and espionage. The former head of Rio Tinto’s iron ore business in China, Mr Hu, 55, an Australian citizen, was arrested on July 5, 2009, along with three Chinese-national colleagues. The incident came at the height of the “iron ore wars”, when China was unhappy with the high prices being charged by Australian iron ore suppliers. Hu was sacked by Rio after being found guilty of accepting bribes and stealing trade secrets. He was sentenced in 2010 to 10 years’ jail but was given a year off for good behaviour. His release was confirmed by the Chinese Foreign Affairs Minister last night. He is believed to have been reunited with his wife Julie, who -remained in Shanghai during his imprisonment. It is believed that he will seek to return home to Australia. Foreign Minister Julie Bishop said: “I welcome the release of Mr Stern Hu, who has completed his jail sentence in China. Australian consular officials in China will continue to provide consular -assistance to Mr Hu and his family for as long as it is needed.”
Virgin Australia Holdings Ltd (VAH):
Virgin Australia boss John Borghetti has said Australia needs to recognise the importance of China as trading partner and the need to maintain good relations. And despite some cooling of diplomatic relations in recent months amid broader global trade tensions, he said he was confident both countries “recognise each other’s interdependency”. “China is such an important trading partner for Australia that a good relationship is important,” Mr Borghetti told The Australian in an interview in Hong Kong. His comments come as Virgin Australia is turning its attention to mainland China after starting flights from Sydney to Hong Kong this week, a year after commencing flights from Melbourne to Hong Kong. Mr Borghetti said Hong Kong was “the jewel in the crown” for Virgin Australia, particularly because it would facilitate expansion into Greater China. For Virgin Australia, the next step will be Greater China, but this would depend on the market dynamics and the availability of slots in the airports of the key cities, he said. Destinations may include Beijing or Shanghai.
Viva Energy management:
The final pitches on the Viva Energy management roadshow will be made Singapore today, with the company on track to raise at least $2.4 billion next week in the largest equity capital markets deal in Australia in four years. DataRoom understands that the retail offering will be worth $600 million. That figure could have been higher, with demand strong from brokers for the stock. Cornerstone investors have taken about $1.2bn and there are precommitments from other fund managers ahead of the institutional bookbuild that will take place next Tuesday and Wednesday. The company is then due to list at the end of next week. It will be the first major public market float this year. The commitments mean that the minimum offer size, at a 50 per cent selldown from Viva’s current owners, will be $2.4bn. The capital raising could rise to be as high as almost $3.1bn. Demand for the Viva stock has been strong and one reason that fund managers are pointing out the lack of new equity deals coming to the market.
Woolworths Group Ltd (WOW) & Caltex Australia Limited (CTX):
Woolworths has signed a new strategic alliance and 15-year wholesale fuel supply agreement with Caltex Australia, but it will continue to pursue an initial public offering or sale of the petrol station business. The arrangement comes two weeks after oil giant BP axed a proposed deal to buy Woolworths’s petrol stations after regulators indicated they would oppose the deal. Woolworths (WOW) said 125 Caltex (CTX) sites would be added to its 638-site network of petrol stations where consumers can cash in fuel redemption offers from the Australian supermarket chain. Woolworths will also start a long-term wholesale food supply to more than 700 existing Caltex convenience sites and said a new long-term fuel supply deal will lock in “a market competitive cost of fuel that is expected to deliver a significant and sustainable earnings uplift to the Woolworths Petrol business.” The grocer said Caltex will also make a one-off payment of about $50m to Woolworths and estimated the fuel deal would give it a pre-tax benefit of more than $80m a year.
(Source: AIMS)
A2 Milk has confirmed its incoming chief executive Jayne Hrdlicka will take the reins on July 16. Ms Hrdlicka, who headed up Qantas’s loyalty division and was chief executive of its budget carrier Jetstar, will be paid $1.5 million in her new role as well as a one-off $586,666 cash payment, about 67 per cent of the short term cash incentive she was forced to forfeit when she resigned from her previous role. She will also receive 599,254 time based rights to acquire a2 Milk (A2M) shares, about 80 per cent of her forfeited short term and long term scrip benefit, to vest in four tranches during the period from August 28, 2018 to August 24, 2019. In December, a2 announced that Ms Hrdlicka would commence the role at the start of the 2019 financial year. That announcement came as the company was admitted into the S&P/ASX 100 Index as well as the S&P/NZX 10 Index.
Bendigo and Adelaide Bank Ltd (BEN):
Relationships between Bendigo Bank's top executives will be under renewed pressure following the publication of a cache of documents that reveals weaknesses in its systems and led a senior executive to contradict her former boss and criticise the bank's most senior risk officer in public. The documents were published by the Hayne royal commission late on Wednesday. Among them are an incendiary internal risk report that identifies systemic weaknesses as well as years of correspondence between the bank and the regulator APRA about issues within its credit department. R
Resolute Mining Limited (RSG):
Resolute Mining’s decision to invest in the automation of its Syama underground extension — a move that will both lower the production cost and extend the life of the gold mine — has received a big tick from the market, which has pushed Resolute higher over the past two days and punched its market capitalisation through the $1 billion mark. But it has also raised questions over how Resolute plans to cover the $US224 million ($303m) in upfront and ramp-up costs at Syama, up substantially from the $US108m capex forecast under the earlier conventional plan. And it has also got people thinking about whether Resolute is still in a position to act as a consolidator in the West African gold space. In recent months it has taken stakes in ASX-listed duo Oklo Resources and Mako Gold, which are exploring in Mali and Burkina Faso, respectively, as well as the Canadian-listed Democratic Republic of Congo explorer Loncor Resources.
Rio Tinto Limited (RIO):
Former Rio Tinto executive Stern Hu was released last night from a Shanghai prison where he had spent the past nine years for bribery and espionage. The former head of Rio Tinto’s iron ore business in China, Mr Hu, 55, an Australian citizen, was arrested on July 5, 2009, along with three Chinese-national colleagues. The incident came at the height of the “iron ore wars”, when China was unhappy with the high prices being charged by Australian iron ore suppliers. Hu was sacked by Rio after being found guilty of accepting bribes and stealing trade secrets. He was sentenced in 2010 to 10 years’ jail but was given a year off for good behaviour. His release was confirmed by the Chinese Foreign Affairs Minister last night. He is believed to have been reunited with his wife Julie, who -remained in Shanghai during his imprisonment. It is believed that he will seek to return home to Australia. Foreign Minister Julie Bishop said: “I welcome the release of Mr Stern Hu, who has completed his jail sentence in China. Australian consular officials in China will continue to provide consular -assistance to Mr Hu and his family for as long as it is needed.”
Virgin Australia Holdings Ltd (VAH):
Virgin Australia boss John Borghetti has said Australia needs to recognise the importance of China as trading partner and the need to maintain good relations. And despite some cooling of diplomatic relations in recent months amid broader global trade tensions, he said he was confident both countries “recognise each other’s interdependency”. “China is such an important trading partner for Australia that a good relationship is important,” Mr Borghetti told The Australian in an interview in Hong Kong. His comments come as Virgin Australia is turning its attention to mainland China after starting flights from Sydney to Hong Kong this week, a year after commencing flights from Melbourne to Hong Kong. Mr Borghetti said Hong Kong was “the jewel in the crown” for Virgin Australia, particularly because it would facilitate expansion into Greater China. For Virgin Australia, the next step will be Greater China, but this would depend on the market dynamics and the availability of slots in the airports of the key cities, he said. Destinations may include Beijing or Shanghai.
Viva Energy management:
The final pitches on the Viva Energy management roadshow will be made Singapore today, with the company on track to raise at least $2.4 billion next week in the largest equity capital markets deal in Australia in four years. DataRoom understands that the retail offering will be worth $600 million. That figure could have been higher, with demand strong from brokers for the stock. Cornerstone investors have taken about $1.2bn and there are precommitments from other fund managers ahead of the institutional bookbuild that will take place next Tuesday and Wednesday. The company is then due to list at the end of next week. It will be the first major public market float this year. The commitments mean that the minimum offer size, at a 50 per cent selldown from Viva’s current owners, will be $2.4bn. The capital raising could rise to be as high as almost $3.1bn. Demand for the Viva stock has been strong and one reason that fund managers are pointing out the lack of new equity deals coming to the market.
Woolworths Group Ltd (WOW) & Caltex Australia Limited (CTX):
Woolworths has signed a new strategic alliance and 15-year wholesale fuel supply agreement with Caltex Australia, but it will continue to pursue an initial public offering or sale of the petrol station business. The arrangement comes two weeks after oil giant BP axed a proposed deal to buy Woolworths’s petrol stations after regulators indicated they would oppose the deal. Woolworths (WOW) said 125 Caltex (CTX) sites would be added to its 638-site network of petrol stations where consumers can cash in fuel redemption offers from the Australian supermarket chain. Woolworths will also start a long-term wholesale food supply to more than 700 existing Caltex convenience sites and said a new long-term fuel supply deal will lock in “a market competitive cost of fuel that is expected to deliver a significant and sustainable earnings uplift to the Woolworths Petrol business.” The grocer said Caltex will also make a one-off payment of about $50m to Woolworths and estimated the fuel deal would give it a pre-tax benefit of more than $80m a year.
(Source: AIMS)
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