Blue Sky Alternative Investments Ltd (BLA):
Blue Sky Alternative Investments has purchased about $40 million worth of general security water entitlements from the Harvard Endowment Fund. The transactions, identified by an examination of Murrumbidgee water trades by The Australian Financial Review, were confirmed by Blue Sky chief executive Kim Morison, who said the purchases were in line with the fund's operation. "It is business as usual," Mr Morison said. "It was a large trade, but there is $3.77 billion worth of general security water tradeable in the Murrumbidgee system alone and a further $1.6 billion of high security in the same system." The Blue Sky purchase includes three 6714-megalitre parcels with average market prices of about $2000 per megalitre, which some market operators have said was a high price in a market where Blue Sky participates in a high percentage of the latest, thin volume trades.
BP & BHP Billiton Ltd (BHP):
Oil and gas giant BP is reportedly in the box seat to secure BHP’s onshore oil and gas assets in the US with an offer of more than $US10 billion ($13.45bn). News wires, including Bloomberg and Reuters, reported at the weekend that London-based BP had tabled the highest offer for the suite of assets, although the two companies are yet to reach a formal agreement. But the apparent progress suggests BHP has almost found an exit from the assets, which represent arguably the worst investment in its storied history. The US onshore fields were acquired by BHP through acquisitions totalling more than $US20bn at what would prove to be the top of the market for oil and gas assets. The mining giant is subsequently estimated to have spent another $US20bn drilling and -developing those assets. Most of that investment has since been written off. BHP’s disastrous foray into onshore US oil and gas also helped make it a target for activist investor Elliott Management, which called for a sale or spinoff of the business as part of its campaign for change at BHP last year.
Retail Food Group Limited (RFG):
Speculation is mounting that Champ Private Equity could be on the cusp of acquiring a consumer business that sells products to supermarkets, which has left some wondering whether Retail Food Group’s Hudson Pacific ingrediences business is on the company’s agenda. RFG, which is Australia’s largest multibrand retail food franchise owner with brands such as Michel’s, Gloria Jean’s, Crust Gourmet Pizza and Di Bella Coffee, has recently suffered substantial falls in its share price due to its franchisees facing challenging trading conditions. Its lenders have recently received waived its debt covenants, which could indicate that asset sales are on the cards. RFG purchased Victoria-based Hudson Pacific in 2016 for $88 million.
Sapura Energy:
Malaysia-based petroleum giant Sapura Energy is believed to be weighing an Australian listing of its operations in a float that could be worth as much as $US2 billion ($2.7bn). The company has already said that plans are afoot to list on the Malaysian stock exchange, but it is now understood that a listing here is being considered as an alternative. It comes as Sapura Energy moves to pay down its $US4.5bn debt pile — largely to Maybank — and as the oil price rally once again attracts equity investors to the resources space. Bank of America Merrill Lynch is working for Sapura Energy and while it has made it known that it has an interest in listing its exploration and production assets on Bursa Malaysia, it is understood that the group is weighing the merits of listing in Australia instead. The thinking behind the move is that an Australian listing would offer the company a more solid investor base, with Australian investors less likely to invest in an Asian-listed group but Asian investors more comfortable about an Australian listing.
Thorn Group (TGA):
The Thorn Group could be moving to sell its Radio Rentals business sooner rather than later, according to sources. Curiously, the most likely buyer is the Adelaide-based Radio Rentals company that shares the same name. Radio Rentals in South Australia sells electrical goods and furniture, while the listed Thorn Group owns a completely separate business with the Radio Rentals name. With the South Australian Radio Rentals eager to embark on a stockmarket listing in the next few years, an acquisition of Thorn’s Radio Rentals operation could prevent a great deal of confusion for those wanting to buy into the business in an initial public offering. Thorn Group owns the trademark for Radio Rentals everywhere except Adelaide. Thorn’s market value is about $95 million. Its share price has been in decline for the past year. One of Thorn’s challenges is understood to be linked to a new product that it introduced to the market several years ago. Compounding matters for the business is the fact that it has remained under scrutiny by the watchdog, the Australian Securities & Investments Commission, for charging excessive interest rates. The two Radio Rentals companies are understood to have been sparring for years over the use of the name.
Village Roadshow Ltd (VRL):
Village Roadshow is expected to use funds from a capital raising and asset sales to reduce debt, invest in new cinemas and the Topgolf park franchise, which opened its first park in Australia on the Gold Coast in June. The cinema, film and theme parks business went into a trading halt on Monday morning after The Australian Financial Review's Street Talk column revealed Village would be seeking fresh funds from shareholders, believed to be in the ballpark of around $50 million. JPMorgan and Minter Ellison are believed to be working on the deal. "The trading halt is requested to allow the Company to provide information about a potential capital raising by the Company," Village general counsel Simon Phillipson said in a statement to the Australian Securities Exchange. "The Company requests that the trading halt remains in place until the earlier of the commencement of trading on Wednesday, 11 July, 2018, and such time as the Company is able to make an announcement about the potential capital raising and requests the trading halt be lifted." Village has spent the last year focused on cutting costs and debt as tough operating conditions, coupled with a heavy debt load, sparked management into action. Last week, it announced the sale of Wet'n'Wild Water Park in Sydney to Spanish operator Parques Reunidos for $40 million, plus further variable fees based on the park's performance up to June 30, 2020.
(Source: AIMS)
Blue Sky Alternative Investments has purchased about $40 million worth of general security water entitlements from the Harvard Endowment Fund. The transactions, identified by an examination of Murrumbidgee water trades by The Australian Financial Review, were confirmed by Blue Sky chief executive Kim Morison, who said the purchases were in line with the fund's operation. "It is business as usual," Mr Morison said. "It was a large trade, but there is $3.77 billion worth of general security water tradeable in the Murrumbidgee system alone and a further $1.6 billion of high security in the same system." The Blue Sky purchase includes three 6714-megalitre parcels with average market prices of about $2000 per megalitre, which some market operators have said was a high price in a market where Blue Sky participates in a high percentage of the latest, thin volume trades.
BP & BHP Billiton Ltd (BHP):
Oil and gas giant BP is reportedly in the box seat to secure BHP’s onshore oil and gas assets in the US with an offer of more than $US10 billion ($13.45bn). News wires, including Bloomberg and Reuters, reported at the weekend that London-based BP had tabled the highest offer for the suite of assets, although the two companies are yet to reach a formal agreement. But the apparent progress suggests BHP has almost found an exit from the assets, which represent arguably the worst investment in its storied history. The US onshore fields were acquired by BHP through acquisitions totalling more than $US20bn at what would prove to be the top of the market for oil and gas assets. The mining giant is subsequently estimated to have spent another $US20bn drilling and -developing those assets. Most of that investment has since been written off. BHP’s disastrous foray into onshore US oil and gas also helped make it a target for activist investor Elliott Management, which called for a sale or spinoff of the business as part of its campaign for change at BHP last year.
Retail Food Group Limited (RFG):
Speculation is mounting that Champ Private Equity could be on the cusp of acquiring a consumer business that sells products to supermarkets, which has left some wondering whether Retail Food Group’s Hudson Pacific ingrediences business is on the company’s agenda. RFG, which is Australia’s largest multibrand retail food franchise owner with brands such as Michel’s, Gloria Jean’s, Crust Gourmet Pizza and Di Bella Coffee, has recently suffered substantial falls in its share price due to its franchisees facing challenging trading conditions. Its lenders have recently received waived its debt covenants, which could indicate that asset sales are on the cards. RFG purchased Victoria-based Hudson Pacific in 2016 for $88 million.
Sapura Energy:
Malaysia-based petroleum giant Sapura Energy is believed to be weighing an Australian listing of its operations in a float that could be worth as much as $US2 billion ($2.7bn). The company has already said that plans are afoot to list on the Malaysian stock exchange, but it is now understood that a listing here is being considered as an alternative. It comes as Sapura Energy moves to pay down its $US4.5bn debt pile — largely to Maybank — and as the oil price rally once again attracts equity investors to the resources space. Bank of America Merrill Lynch is working for Sapura Energy and while it has made it known that it has an interest in listing its exploration and production assets on Bursa Malaysia, it is understood that the group is weighing the merits of listing in Australia instead. The thinking behind the move is that an Australian listing would offer the company a more solid investor base, with Australian investors less likely to invest in an Asian-listed group but Asian investors more comfortable about an Australian listing.
Thorn Group (TGA):
The Thorn Group could be moving to sell its Radio Rentals business sooner rather than later, according to sources. Curiously, the most likely buyer is the Adelaide-based Radio Rentals company that shares the same name. Radio Rentals in South Australia sells electrical goods and furniture, while the listed Thorn Group owns a completely separate business with the Radio Rentals name. With the South Australian Radio Rentals eager to embark on a stockmarket listing in the next few years, an acquisition of Thorn’s Radio Rentals operation could prevent a great deal of confusion for those wanting to buy into the business in an initial public offering. Thorn Group owns the trademark for Radio Rentals everywhere except Adelaide. Thorn’s market value is about $95 million. Its share price has been in decline for the past year. One of Thorn’s challenges is understood to be linked to a new product that it introduced to the market several years ago. Compounding matters for the business is the fact that it has remained under scrutiny by the watchdog, the Australian Securities & Investments Commission, for charging excessive interest rates. The two Radio Rentals companies are understood to have been sparring for years over the use of the name.
Village Roadshow Ltd (VRL):
Village Roadshow is expected to use funds from a capital raising and asset sales to reduce debt, invest in new cinemas and the Topgolf park franchise, which opened its first park in Australia on the Gold Coast in June. The cinema, film and theme parks business went into a trading halt on Monday morning after The Australian Financial Review's Street Talk column revealed Village would be seeking fresh funds from shareholders, believed to be in the ballpark of around $50 million. JPMorgan and Minter Ellison are believed to be working on the deal. "The trading halt is requested to allow the Company to provide information about a potential capital raising by the Company," Village general counsel Simon Phillipson said in a statement to the Australian Securities Exchange. "The Company requests that the trading halt remains in place until the earlier of the commencement of trading on Wednesday, 11 July, 2018, and such time as the Company is able to make an announcement about the potential capital raising and requests the trading halt be lifted." Village has spent the last year focused on cutting costs and debt as tough operating conditions, coupled with a heavy debt load, sparked management into action. Last week, it announced the sale of Wet'n'Wild Water Park in Sydney to Spanish operator Parques Reunidos for $40 million, plus further variable fees based on the park's performance up to June 30, 2020.
(Source: AIMS)
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