Graincorp Ltd (GNC):
GrainCorp has lifted its earnings guidance after strength in its Malt business and the rise of US craft beer. It lifted its net profit guidance by at least $10 million, to $60m to $70m from $50m to $70m, and earnings to $255m to $270m from $240m to $265m. North American success had offset the effect of the drought in Eastern Australian, where it said it expected considerable decline in production in FY19. “The benefits of our diversified business model are again being demonstrated in the face of the substantial drought challenges in eastern Australia. These conditions have slowed export volumes as farmers and the domestic market move to secure supplies,” chief Mark Palmquist said.
Investa Office Fund (IOF):
Blackstone has warned it could cancel its takeover bid for Investa Office Fund and demands a break fee if the board postpones a crucial shareholder vote in order to consider a rival offer by Canada's Oxford Properties Group. The battle for control of the listed IOF has taken a dramatic turn with an eleventh-hour proposal from Oxford at $5.50 per share cash, trumping Blackstone's existing $5.35 cash bid on face value. The bid from Oxford, which is the real estate arm of pension fund OMERS, is higher than IOF's net tangible asset rating of $5.47 and is around $90 million more than Blackstone's $3.2 billion cash bid. But Blackstone lambasted the Canadian's effort which, it said, was "clearly not a superior proposal", and was heavily qualified by a series of conditions. Not only is the rival bid subject to due diligence, it has not received approval from the OMERS investment committee nor has its financing been confirmed yet, Blackstone's Australian property head Chris Tynan wrote in letter to IOF's chairman Richard Longes.
Lynas Corporation Ltd (LYC):
Rare earths miner Lynas has declared its first maiden profit after higher production, record revenues and the paying off more than half its debt. But the company has missed some expectations and is being weighed down by political uncertainty in Malaysia, where the company and its processing plant are based. Lynas, which mines in Western Australia, said net profit for the year through June was $53.1 million, up from a restated $500,000 net loss the previous year. Lynas managing director, Amanda Lacaze, said: “This result is the culmination of four years of intense focus on operational excellence and customer development. During the 2018 financial year, we increased production, strengthened our portfolio of customers in key markets, achieved record sales, and our Group debt reduced by 61 per cent.” Underlying earnings before interest, tax, depreciation and amortisation rose four-fold to $127m, from $31.9m the year before, missing UBS expectations of $141m. Lynas shares dropped as much as 3.6 per cent to $1.985 in early trade, last down 1.94pc at $2.02.
Nearmap Ltd (NEA):
Australian technology and data company Nearmap is raising $70 million through an institutional placement. Working on the deal is Canaccord Genuity and Macquarie Capital. The company will use the funds to expand its group sales and marketing capability, predominantly in the United States, to boost its balance sheet and position itself for opportunities to increase its capability to improve data. Nearmap will sell 43.75 million new securities at $1.60 each, which is an 11.1 per cent discount to the last closing share price of $1.80.
Sigma Healthcare Ltd (SIG):
Sigma Healthcare’s first-half profit has slumped more than 50 per cent to $13.4 million, partly due to restructuring costs following the loss of its contract to supply Chemist Warehouse. The pharmaceutical supplier says net profit for the six months to July 31 fell 51.8 per cent on $6.1 million of restructuring costs along with a 2.0 per cent fall in revenue. But chief executive Mark Hooper says investment in new distribution infrastructure in NSW, Queensland, WA and SA is on schedule and under budget, and Sigma has hired financial services firm Accenture to help oversee its continued restructure. “We stand by our decision to not renew the MyChemist/Chemist Warehouse contract on the terms sought as it was not in the best long-term interests of the company or its shareholders. This decision will free up over $300 million in working capital and provides us with an important pivot point to re-shape and grow the Sigma business,” Mr Hooper said. SIG shares shed 40 per cent to 48.5c when the contract wasn’t renewed in July, rebounding to 60.5c since.
Stockland Corporation Ltd (SGP):
Stockland will spend up to $350 million buying back shares to boost the value of its securities, which it said were worth more than the value of their net tangible assets. The country's largest diversified developer said on Thursday the prediction it made last month of 5-7 per cent growth this year in funds from operations per security showed it was confident its expected returns justified a higher share price. "Stockland securities continue to trade approximately in line with stated Net Tangible Assets (NTA) of $4.18 per security," chief executive Mark Steinert said. "This does not account for the embedded value of our strongly performing residential landbank or the resilience of our diversified business model. We believe that investing in our own securities is an attractive and accretive use of capital at this point." The company is keen to boost its share price, which has under-performed rivals Mirvac, Vicinity Centres and the GPT Group. Stockland intends to fund the buy-back from existing facilities. The buy-back will commence on 21 September 2018, and remain in place for up to 24 months.
Telstra Corporation Ltd (TLS):
Telstra has been forced to cut its 2019 full year numbers on the back of the latest corporate plan for the National Broadband Network, which flags a slower than expected NBN rollout. According to Telstra (TLS), the slowdown will see a $300 million reduction in its total income for full-year 2019, from a range of $26.5 billion and $28.4bn to $26.2bn and $28.1bn. Meanwhile, earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the period has been downgraded by $100m, from a range of $8.8bn and $9.5bn to $8.7bn to $9.4bn. NBN Co’s latest corporate plan, released last week, shows that it will connect less homes to the NBN than previously forecast, as it looks to make up ground lost because of the suspension of services on the hybrid coaxial fibre (HFC) portion of the NBN.
Westpac Banking Corp (WBC):
Westpac Banking Corp is weighing a sale of its financial planning arm, as it joins rivals in the scramble to prepare for any fallout from the Hayne royal commission. Sources told The Australian Financial Review that Westpac - the lender most staunchly wedded to its wealth business - had quietly tested appetite in the market to offload its inhouse financial planners. It is understood to have also weighed an asset swap or retaining the division. The assessment is part of the bank preparing for a myriad of possible outcomes and worse case scenarios, that may emerge from the interim or final reports of the royal commission. Among its key areas of focus, the commission has investigated potential conflicts in financial services companies which provide advice and push sales of their products to customers.
Worleyparsons Limited (WOR):
Former Dow Chemical boss Andrew Liveris has joined resources contractor WorleyParsons as a non-executive director just days after his appointment as a special adviser to Saudi Arabia’s Public Investment Fund, one of world’s largest sovereign wealth funds. Mr Liveris, who stepped down as chief executive of the recently merged DowDuPont in April, has accumulated a number of high profile roles since his departure from the US firm including a board position with Saudi Aramco which recently delayed a blockbuster initial public offering. He joined Aramco, the world’s largest oil company, on July 1 and was appointed to PIF earlier this week to help drive its international expansion which may include investments in Australia. The Darwin-born businessman has also been a director of tech firm IBM since 2010. WorleyParsons (WOR) chairman John Grill said Mr Liveris’ “breadth of global leadership experience” in the US and Middle East will enhance the abilities of its board.
(Source: AIMS)
GrainCorp has lifted its earnings guidance after strength in its Malt business and the rise of US craft beer. It lifted its net profit guidance by at least $10 million, to $60m to $70m from $50m to $70m, and earnings to $255m to $270m from $240m to $265m. North American success had offset the effect of the drought in Eastern Australian, where it said it expected considerable decline in production in FY19. “The benefits of our diversified business model are again being demonstrated in the face of the substantial drought challenges in eastern Australia. These conditions have slowed export volumes as farmers and the domestic market move to secure supplies,” chief Mark Palmquist said.
Investa Office Fund (IOF):
Blackstone has warned it could cancel its takeover bid for Investa Office Fund and demands a break fee if the board postpones a crucial shareholder vote in order to consider a rival offer by Canada's Oxford Properties Group. The battle for control of the listed IOF has taken a dramatic turn with an eleventh-hour proposal from Oxford at $5.50 per share cash, trumping Blackstone's existing $5.35 cash bid on face value. The bid from Oxford, which is the real estate arm of pension fund OMERS, is higher than IOF's net tangible asset rating of $5.47 and is around $90 million more than Blackstone's $3.2 billion cash bid. But Blackstone lambasted the Canadian's effort which, it said, was "clearly not a superior proposal", and was heavily qualified by a series of conditions. Not only is the rival bid subject to due diligence, it has not received approval from the OMERS investment committee nor has its financing been confirmed yet, Blackstone's Australian property head Chris Tynan wrote in letter to IOF's chairman Richard Longes.
Lynas Corporation Ltd (LYC):
Rare earths miner Lynas has declared its first maiden profit after higher production, record revenues and the paying off more than half its debt. But the company has missed some expectations and is being weighed down by political uncertainty in Malaysia, where the company and its processing plant are based. Lynas, which mines in Western Australia, said net profit for the year through June was $53.1 million, up from a restated $500,000 net loss the previous year. Lynas managing director, Amanda Lacaze, said: “This result is the culmination of four years of intense focus on operational excellence and customer development. During the 2018 financial year, we increased production, strengthened our portfolio of customers in key markets, achieved record sales, and our Group debt reduced by 61 per cent.” Underlying earnings before interest, tax, depreciation and amortisation rose four-fold to $127m, from $31.9m the year before, missing UBS expectations of $141m. Lynas shares dropped as much as 3.6 per cent to $1.985 in early trade, last down 1.94pc at $2.02.
Nearmap Ltd (NEA):
Australian technology and data company Nearmap is raising $70 million through an institutional placement. Working on the deal is Canaccord Genuity and Macquarie Capital. The company will use the funds to expand its group sales and marketing capability, predominantly in the United States, to boost its balance sheet and position itself for opportunities to increase its capability to improve data. Nearmap will sell 43.75 million new securities at $1.60 each, which is an 11.1 per cent discount to the last closing share price of $1.80.
Sigma Healthcare Ltd (SIG):
Sigma Healthcare’s first-half profit has slumped more than 50 per cent to $13.4 million, partly due to restructuring costs following the loss of its contract to supply Chemist Warehouse. The pharmaceutical supplier says net profit for the six months to July 31 fell 51.8 per cent on $6.1 million of restructuring costs along with a 2.0 per cent fall in revenue. But chief executive Mark Hooper says investment in new distribution infrastructure in NSW, Queensland, WA and SA is on schedule and under budget, and Sigma has hired financial services firm Accenture to help oversee its continued restructure. “We stand by our decision to not renew the MyChemist/Chemist Warehouse contract on the terms sought as it was not in the best long-term interests of the company or its shareholders. This decision will free up over $300 million in working capital and provides us with an important pivot point to re-shape and grow the Sigma business,” Mr Hooper said. SIG shares shed 40 per cent to 48.5c when the contract wasn’t renewed in July, rebounding to 60.5c since.
Stockland Corporation Ltd (SGP):
Stockland will spend up to $350 million buying back shares to boost the value of its securities, which it said were worth more than the value of their net tangible assets. The country's largest diversified developer said on Thursday the prediction it made last month of 5-7 per cent growth this year in funds from operations per security showed it was confident its expected returns justified a higher share price. "Stockland securities continue to trade approximately in line with stated Net Tangible Assets (NTA) of $4.18 per security," chief executive Mark Steinert said. "This does not account for the embedded value of our strongly performing residential landbank or the resilience of our diversified business model. We believe that investing in our own securities is an attractive and accretive use of capital at this point." The company is keen to boost its share price, which has under-performed rivals Mirvac, Vicinity Centres and the GPT Group. Stockland intends to fund the buy-back from existing facilities. The buy-back will commence on 21 September 2018, and remain in place for up to 24 months.
Telstra Corporation Ltd (TLS):
Telstra has been forced to cut its 2019 full year numbers on the back of the latest corporate plan for the National Broadband Network, which flags a slower than expected NBN rollout. According to Telstra (TLS), the slowdown will see a $300 million reduction in its total income for full-year 2019, from a range of $26.5 billion and $28.4bn to $26.2bn and $28.1bn. Meanwhile, earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the period has been downgraded by $100m, from a range of $8.8bn and $9.5bn to $8.7bn to $9.4bn. NBN Co’s latest corporate plan, released last week, shows that it will connect less homes to the NBN than previously forecast, as it looks to make up ground lost because of the suspension of services on the hybrid coaxial fibre (HFC) portion of the NBN.
Westpac Banking Corp (WBC):
Westpac Banking Corp is weighing a sale of its financial planning arm, as it joins rivals in the scramble to prepare for any fallout from the Hayne royal commission. Sources told The Australian Financial Review that Westpac - the lender most staunchly wedded to its wealth business - had quietly tested appetite in the market to offload its inhouse financial planners. It is understood to have also weighed an asset swap or retaining the division. The assessment is part of the bank preparing for a myriad of possible outcomes and worse case scenarios, that may emerge from the interim or final reports of the royal commission. Among its key areas of focus, the commission has investigated potential conflicts in financial services companies which provide advice and push sales of their products to customers.
Worleyparsons Limited (WOR):
Former Dow Chemical boss Andrew Liveris has joined resources contractor WorleyParsons as a non-executive director just days after his appointment as a special adviser to Saudi Arabia’s Public Investment Fund, one of world’s largest sovereign wealth funds. Mr Liveris, who stepped down as chief executive of the recently merged DowDuPont in April, has accumulated a number of high profile roles since his departure from the US firm including a board position with Saudi Aramco which recently delayed a blockbuster initial public offering. He joined Aramco, the world’s largest oil company, on July 1 and was appointed to PIF earlier this week to help drive its international expansion which may include investments in Australia. The Darwin-born businessman has also been a director of tech firm IBM since 2010. WorleyParsons (WOR) chairman John Grill said Mr Liveris’ “breadth of global leadership experience” in the US and Middle East will enhance the abilities of its board.
(Source: AIMS)
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