AMP Limited (AMP):
The surging value of office assets in the West Australian capital has prompted AMP Capital to join Primewest in putting its stake in Exchange tower on the block, with the entire complex likely to garner offers close to $350 million. The sale will see AMP Capital cash in on rapidly improving investment sentiment on Perth as its leasing markets pick up and institutional players once again move into the city. Primewest last month flagged that it would sell its half-stake in the Exchange Tower. Its move prompted questions about whether AMP Capital would either seek to buy this interest or also sell its holding, potentially boosting the price received. The stake in the 40-level tower is held by AMP Capital’s Wholesale Office Fund, which owns a high quality portfolio of buildings around Australia. The fund last September bought a 25 per cent stake in Brookfield’s $1.8 billion Sydney office and shopping development Wynyard Place. The trust, alongside the AMP Capital Diversified Property Fund and superannuation fund REST, is also undertaking the $3bn Quay Quarter Tower at 50 Bridge Street. Both vendors should do well out of selling the tower as interest in Perth is at a high point.
Ausdrill Limited (ASL):
Takeover speculation has once again surfaced surrounding the West Australian drilling company Ausdrill. The catalyst is thought to be the recent sale of shares in the company by founder Ron Sayers. Ausdrill, which is listed with a $600 million market value, has been in the crosshairs of parties before, but the challenge for any buyer has always been that about 20 per cent of the register has been locked up by Mr Sayers and his allies. Last month, Mr Sayers was replaced by Mark Norwell as Ausdrill’s new chief executive. Mr Sayers retired from the company this month after 30 years at the helm and has sold his 12 per cent stake. Ausdrill is involved in providing services for mining exploration, mine development, surface and underground mining, manufacturing and infrastructure. The company is once again drawing attention from suitors as the resources industry stages a rebound. Private equity firms could be taking a look, while the other possibility floated is a merger of the business with MacMahon Holdings. MacMahon tried to buy Ausdrill about a decade ago in a hostile takeover bid but the deal never went anywhere.
Ramsay Health Care Limited (RHC):
The timing of Ramsay Health Care’s $1 billion takeover offer for Swedish hospital group Capio was motivated by the suitor’s announcement last month that it was looking at divesting some of its businesses, forcing Australia’s largest private hospital operator to engage with Capio shareholders directly, CEO Craig McNally said. Ramsay announced late on Friday that its French subsidiary, Ramsay Generale de Sante, in which it owns a 50.9 per cent stake, had launched the unsolicited €661 million ($1.04bn) takeover bid for Swedish healthcare company Capio. Shareholders would be paid 48.50 Swedish krona ($7.36) a share and the acquisition would be funded through a mix of debt and equity, Ramsay said. The offer represented a 16 per cent premium to Thursday’s closing price of 41.80 Swedish krona. Capio’s board has since rejected the offer, saying it undervalues the business. Capio’s shares rocketed on the news, lifting 26.79 per cent to 53 krona by Friday’s close, indicating investors expect a higher bid will be forthcoming. Mr McNally wouldn’t confirm the healthcare operator’s next move, simply saying that “there’s a lot to play out in this process” and he expects local investors to “take a wait-and-see approach” in their reaction to the news.
Select Harvests Limited (SHV):
Listed almond grower Select Harvests has entered into a distribution agreement with PepsiCo China to launch its Lucky branded nuts there. Under the agreement, which has an initial term of 5 years, PepsiCo will be responsible for the marketing, sales and distribution of Lucky nuts and seeds in China. “Beyond the initial investment, the successful launch of Lucky into China is expected to create additional value to our business in the long term,” Select Harvests managing director Paul Thompson said. Both parties have made significant commitments to an advertising and marketing program over the first 18 months of the agreement, Select Harvests said in a statement this morning.
Sirtex Medical Limited (SRX):
Liver cancer treatment maker Sirtex Medical said on Monday that the U.S. Federal Trade Commission cleared its $1.4 billion buyout by a Chinese consortium, clearing a major hurdle for the deal to go through. The company had agreed last month to be taken over by Beijing-based CDH Investments and its partner, China Grand Pharmaceutical and Healthcare Holdings, which trumped a bid from U.S.-based Varian Medical Systems. Sirtex, which has a large portion of its operations in the United States, received clearance for the buyout from Australia's Foreign Investment Review Board earlier in the month.
Westpac Banking Corp (WBC):
Westpac is set to rock the increasingly nervous property market by withdrawing new loan offers to self-managed superannuation funds looking to invest in property. The bank, the nation's second largest mortgage lender, and its subsidiaries Bank of Melbourne, St George Bank and Bank SA, will withdraw from lending to small super funds at this end of this month, following a review of funds' prospects and its exposure. The move has shocked mortgage brokers and financial advisers, who act as intermediaries between borrowers and the banks, but complements a change in lending strategy the banks have rolled out in recent weeks. It will also make already jittery property investors even more nervous about the outlook amid falling prices, rising costs and oversupply, particularly for apartments in the inner suburbs of Melbourne, Sydney and Brisbane. Other major lenders have also been tightening their lending to self-managed funds, in response to tightening regulations, toughening investment markets and the shift from investment to principal and investment products.
Whitehaven Coal Ltd (WHC):
Whitehaven Coal signalled a lift in annual earnings despite flat production and higher costs, reflecting strong coal markets. “With thermal coal pricing at seven-year highs, and against the backdrop of continuing strong demand, Whitehaven remains on track for a record set of financials in FY18,” chief executive Paul Flynn said. Whitehaven on Monday said saleable coal production was flat in the year through June, at 20.9 million metric tons, after a 13 per cent slide in fourth-quarter output as the miner faced setbacks at its Narrabri mine. Cost pressures because of lower production at Narrabri, where the company faced a series of mechanical issues, and higher diesel prices slightly increased full year costs to US$62 per tonne, the company said. Still, demand for high quality coal continues to rise in Asia, particularly in India and China, said Whitehaven, which has invested heavily in new mines and operational improvements at existing pits in recent years. WHC trading up over 3 per cent in early trade at $5.77.
(Source: AIMS)
The surging value of office assets in the West Australian capital has prompted AMP Capital to join Primewest in putting its stake in Exchange tower on the block, with the entire complex likely to garner offers close to $350 million. The sale will see AMP Capital cash in on rapidly improving investment sentiment on Perth as its leasing markets pick up and institutional players once again move into the city. Primewest last month flagged that it would sell its half-stake in the Exchange Tower. Its move prompted questions about whether AMP Capital would either seek to buy this interest or also sell its holding, potentially boosting the price received. The stake in the 40-level tower is held by AMP Capital’s Wholesale Office Fund, which owns a high quality portfolio of buildings around Australia. The fund last September bought a 25 per cent stake in Brookfield’s $1.8 billion Sydney office and shopping development Wynyard Place. The trust, alongside the AMP Capital Diversified Property Fund and superannuation fund REST, is also undertaking the $3bn Quay Quarter Tower at 50 Bridge Street. Both vendors should do well out of selling the tower as interest in Perth is at a high point.
Ausdrill Limited (ASL):
Takeover speculation has once again surfaced surrounding the West Australian drilling company Ausdrill. The catalyst is thought to be the recent sale of shares in the company by founder Ron Sayers. Ausdrill, which is listed with a $600 million market value, has been in the crosshairs of parties before, but the challenge for any buyer has always been that about 20 per cent of the register has been locked up by Mr Sayers and his allies. Last month, Mr Sayers was replaced by Mark Norwell as Ausdrill’s new chief executive. Mr Sayers retired from the company this month after 30 years at the helm and has sold his 12 per cent stake. Ausdrill is involved in providing services for mining exploration, mine development, surface and underground mining, manufacturing and infrastructure. The company is once again drawing attention from suitors as the resources industry stages a rebound. Private equity firms could be taking a look, while the other possibility floated is a merger of the business with MacMahon Holdings. MacMahon tried to buy Ausdrill about a decade ago in a hostile takeover bid but the deal never went anywhere.
Ramsay Health Care Limited (RHC):
The timing of Ramsay Health Care’s $1 billion takeover offer for Swedish hospital group Capio was motivated by the suitor’s announcement last month that it was looking at divesting some of its businesses, forcing Australia’s largest private hospital operator to engage with Capio shareholders directly, CEO Craig McNally said. Ramsay announced late on Friday that its French subsidiary, Ramsay Generale de Sante, in which it owns a 50.9 per cent stake, had launched the unsolicited €661 million ($1.04bn) takeover bid for Swedish healthcare company Capio. Shareholders would be paid 48.50 Swedish krona ($7.36) a share and the acquisition would be funded through a mix of debt and equity, Ramsay said. The offer represented a 16 per cent premium to Thursday’s closing price of 41.80 Swedish krona. Capio’s board has since rejected the offer, saying it undervalues the business. Capio’s shares rocketed on the news, lifting 26.79 per cent to 53 krona by Friday’s close, indicating investors expect a higher bid will be forthcoming. Mr McNally wouldn’t confirm the healthcare operator’s next move, simply saying that “there’s a lot to play out in this process” and he expects local investors to “take a wait-and-see approach” in their reaction to the news.
Select Harvests Limited (SHV):
Listed almond grower Select Harvests has entered into a distribution agreement with PepsiCo China to launch its Lucky branded nuts there. Under the agreement, which has an initial term of 5 years, PepsiCo will be responsible for the marketing, sales and distribution of Lucky nuts and seeds in China. “Beyond the initial investment, the successful launch of Lucky into China is expected to create additional value to our business in the long term,” Select Harvests managing director Paul Thompson said. Both parties have made significant commitments to an advertising and marketing program over the first 18 months of the agreement, Select Harvests said in a statement this morning.
Sirtex Medical Limited (SRX):
Liver cancer treatment maker Sirtex Medical said on Monday that the U.S. Federal Trade Commission cleared its $1.4 billion buyout by a Chinese consortium, clearing a major hurdle for the deal to go through. The company had agreed last month to be taken over by Beijing-based CDH Investments and its partner, China Grand Pharmaceutical and Healthcare Holdings, which trumped a bid from U.S.-based Varian Medical Systems. Sirtex, which has a large portion of its operations in the United States, received clearance for the buyout from Australia's Foreign Investment Review Board earlier in the month.
Westpac Banking Corp (WBC):
Westpac is set to rock the increasingly nervous property market by withdrawing new loan offers to self-managed superannuation funds looking to invest in property. The bank, the nation's second largest mortgage lender, and its subsidiaries Bank of Melbourne, St George Bank and Bank SA, will withdraw from lending to small super funds at this end of this month, following a review of funds' prospects and its exposure. The move has shocked mortgage brokers and financial advisers, who act as intermediaries between borrowers and the banks, but complements a change in lending strategy the banks have rolled out in recent weeks. It will also make already jittery property investors even more nervous about the outlook amid falling prices, rising costs and oversupply, particularly for apartments in the inner suburbs of Melbourne, Sydney and Brisbane. Other major lenders have also been tightening their lending to self-managed funds, in response to tightening regulations, toughening investment markets and the shift from investment to principal and investment products.
Whitehaven Coal Ltd (WHC):
Whitehaven Coal signalled a lift in annual earnings despite flat production and higher costs, reflecting strong coal markets. “With thermal coal pricing at seven-year highs, and against the backdrop of continuing strong demand, Whitehaven remains on track for a record set of financials in FY18,” chief executive Paul Flynn said. Whitehaven on Monday said saleable coal production was flat in the year through June, at 20.9 million metric tons, after a 13 per cent slide in fourth-quarter output as the miner faced setbacks at its Narrabri mine. Cost pressures because of lower production at Narrabri, where the company faced a series of mechanical issues, and higher diesel prices slightly increased full year costs to US$62 per tonne, the company said. Still, demand for high quality coal continues to rise in Asia, particularly in India and China, said Whitehaven, which has invested heavily in new mines and operational improvements at existing pits in recent years. WHC trading up over 3 per cent in early trade at $5.77.
(Source: AIMS)
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