Amaysim Australia Ltd (AYS):
At a time that Amaysim is in the spotlight as a possible takeover target for a rival, it’s worth remembering the intentions of its largest shareholder. German publisher Norman Rentrop has an appetite for investments that fit the company’s profile. He has amassed 16 per cent of Amaysim shares, prompting some to wonder whether he might consider taking the company private. Rentrop’s interests have held shares in Amaysim for about two years and last week it emerged he had lifted his stake in the business by 1 percentage point from 15 per cent. The group is trading at almost half of what it was worth when it listed three years ago, and is seen as undervalued by the market. Apparently, the attraction for Rentrop is that Amaysim acquires mobile customers more cheaply than other telecommunications providers and the cost of servicing them is low. He is also attracted to the group’s ability to cross-sell mobile phone plans to its electricity customers. Amaysim has about 1 million mobile phone customers and provides telecommunications services to about 600,000 homes. It also provides electricity to about 190,000 homes following its acquisition of Click Energy. Optus is thought to have sounded out Amaysim for a possible takeover, but the company said it had not received any formal approaches.
Bega Cheese Ltd (BGA):
Bega Cheese executive chairman Barry Irvin is adamant the dairy group is not about to launch a $200 million counter takeover bid for Capilano Honey. The denial comes despite the company yesterday triggering a capital raising for a similar amount to strengthen its balance sheet and give it the financial muscle to react to any “opportunities” in the food sector. A scheme booklet from Capilano’s current and only takeover suitor, a consortium made up of Australian-Chinese private equity fund Wattle Hill, led by Albert Tse and ROC Partners investment fund, is believed to have been sent to the corporate regulator before it goes to shareholders. Advisers to Bega are hopeful the fact that Capilano is trading at almost $22 a share, well above the $20.06-a-share offer thrown down by the bidders, will make it difficult for the independent expert to label the bid “fair”, providing some wiggle room for shareholders to reject the offer and consider a rival offer — possibly from Bega. However, when looking over the scheme booklet the Australian Securities & Investments Commission can also consider the fact the private equity suitor is bidding for the entire company, not just a controlling stake. And it remains the only takeover offer on the table, for now.
Clearview Wealth Ltd (CVW):
ClearView chief risk officer Greg Martin called for his employees to be sacked after lashing the ASX-listed life insurer’s “fullon sales culture without much regard for customers” and admitting it had breached criminal anti-hawking laws more than 300,000 times. The royal commission heard that ClearView, which continues to be in the sights of the Australian Securities & Investments Commission over “systemic” failures in complying with laws designed to prevent spruikers forcing unwanted policies on customers, ran an outbound call centre where as much as 40 per cent of calls were non-compliant and targeted “poor” Australians with unnecessary policies. Senior counsel assisting the commission, Rowena Orr QC, kicked off the inquiry’s probe into the life insurance sector yesterday by detailing a stream of admissions of misconduct from the largest companies in the industry, pinning a key driver of unethical behaviour on the $6 billion worth of commissions paid to financial advisers over the five years to last year. Mr Martin, also chief actuary at the Sydney-based ClearView, was the first executive to be questioned at the royal commission’s fortnight of hearings.
Commonwealth Bank of Australia (CBA):
Slater and Gordon plans a series of class actions on behalf of “millions” of Australians against banks it says may have “gouged” their retirement savings. The law firm will today launch a “Get Your Super Back” campaign today, on behalf of Australians with savings in bank-owned super funds. It follows evidence at the royal commission of misconduct by the major banks. Slater and Gordon says it will allege big bankbacked super funds charged exorbitant fees and failed to obtain competitive cash interest rates for members on cash option funds. It says millions of members may have been affected. The campaign will involve a series of class actions and Commonwealth Bank-owned Colonial First State as well as AMP super are likely to be the first targets, Slater and Gordon said.
Harvey Norman Holdings Ltd (HVN):
Billionaire Gerry Harvey has said he will “put his money where his mouth is” and sell his investment portfolio to buy more shares in his under pressure retail giant Harvey Norman. But an analysis of his shareholdings shows some of Harvey’s shares are going quite well, meaning he faces a choice of selling and taking some profits off the table or staying in for some more growth. Either way, Harvey seems determined to silence the naysayers in Harvey Norman over corporate governance issues at Harvey Norman that include investments in a dairy business, criticism of its remuneration policy and the company’s financial accounts. He has said he will buy about $10 million worth of Harvey Norman shares, with documents lodged with the ASX already showing he has shelled out $8.03 million to buy 2.3 million shares at an average of $3.49.
Macquarie Group Ltd (MQG):
Macquarie Group has benefited from strong performance fees, continued growth in mortgages and solid trading conditions across most markets in the first three months of its financial year, as the bank continues to forecast a steady full-year profit. In a presentation released ahead of one that chief financial officer Alex Harvey is due to give in Hong Kong this week, the Australian company (MQG) today affirmed guidance given as recently as July that anticipated a net profit “broadly in line” with the previous year. The Australian bank, which has a reputation among analysts for conservative guidance, said it also expects its first-half profit to be in line with the year-earlier result, which included strong performance fees from its Macquarie Asset Management unit.
Pact Group Holdings Ltd (PGH):
Billionaire Raphael Geminder has rejected investor criticism the packaging company he controls, Pact Group, has become too -focused on acquisition-led growth after the manufacturer’s chief executive, Malcolm Bundey, was ousted after less than three years in the role. Mr Geminder and Mr Bundey talked over the weekend, when the latter offered his resignation. It is believed the former chief had been feeling the pressure internally and externally from investors for some time. The Australian can reveal Pact’s second-largest shareholder, Investors Mutual, wrote a letter to the company’s board two weeks ago after underwhelming annual earnings and called for a stronger performance from the packaging giant. Shares in the company have fallen by almost 30 per cent since its annual net profit missed market expectations last month and raised questions over its ability to successfully integrate recently -acquired businesses into the company fold.
Primary Health Care Ltd (PGH):
Shares in Primary Health Care lifted 1.8 per cent yesterday after the hospital operator flagged a higher full-year profit and announced it would acquire the Montserrat Day Hospitals network for $75 million. The purchase pushed Primary’s full-year profit forecast to $100m, up from $92.3m previously. “Montserrat with its combination of haematology/oncology clinics and day hospitals, will deliver synergies to the benefit of other divisions,” chief executive Malcolm Parmenter said. “We will be able to take advantage of Montserrat facilities as we grow our specialist businesses, like IVF. “We also expect that our pathology division will be able to organically grow revenue through Montserrat over time.” By adding seven specialist day hospitals and oncology clinics to Primary’s network, as well as three new facilities in the works, the purchase will allow it to derive revenue outside the Medicare benefits schedule, Primary’s CEO said yesterday.
Telstra Corporation Ltd (TLS):
Telstra boss Andy Penn is confident the proposed tie-up between TPG Telecom and Vodafone Hutchison Australia won’t have any bearing on the upcoming 5G mobile spectrum, as the incumbent looks to get its hands on the valuable asset as quickly as possible. TPG and Vodafone were expected to compete against one another at the auction, scheduled for late November, but talk is they have put in a joint application to the Australian Communications and Media Authority. News of the planned merger had raised concerns, most notably by Optus, that the timing of the auction may need to be revisited. However, Mr Penn said there was no reason to delay the auction and that he was pleased by the federal government’s commitment to getting the 5G spectrum into the market promptly. “Everyone has been fully aware of the terms of the auction and the government has communicated its intention to continue with the auction and it’s important to make sure that Australians can receive the benefit of 5G as soon as it becomes available,” he told The Australian after his keynote address at the meeting of international standard setting body 3GPP in the Gold Coast yesterday. The 3GPP meeting is being held to finalise the standards for 5G mobile technology.
Vocus Group Ltd (VOC):
Vocus Group’s long-term future in the Australian telecommunications market may be tied to the top-notch fibre infrastructure assets at its disposal but the telco isn’t ready to give up on the consumer broadband market just yet. Its Dodo brand has been given a complete overhaul, and the head of Vocus’s consumer business, Sandra de Castro, said the telco was hoping to leverage every ounce of its experience as a reseller to compete as a low-cost fixed broadband provider. The Dodo rebrand wasn’t just about cosmetic changes, Ms de Castro told The Australian, but also about providing customers with better value and a refreshed service experience.
(Source: AIMS)
At a time that Amaysim is in the spotlight as a possible takeover target for a rival, it’s worth remembering the intentions of its largest shareholder. German publisher Norman Rentrop has an appetite for investments that fit the company’s profile. He has amassed 16 per cent of Amaysim shares, prompting some to wonder whether he might consider taking the company private. Rentrop’s interests have held shares in Amaysim for about two years and last week it emerged he had lifted his stake in the business by 1 percentage point from 15 per cent. The group is trading at almost half of what it was worth when it listed three years ago, and is seen as undervalued by the market. Apparently, the attraction for Rentrop is that Amaysim acquires mobile customers more cheaply than other telecommunications providers and the cost of servicing them is low. He is also attracted to the group’s ability to cross-sell mobile phone plans to its electricity customers. Amaysim has about 1 million mobile phone customers and provides telecommunications services to about 600,000 homes. It also provides electricity to about 190,000 homes following its acquisition of Click Energy. Optus is thought to have sounded out Amaysim for a possible takeover, but the company said it had not received any formal approaches.
Bega Cheese Ltd (BGA):
Bega Cheese executive chairman Barry Irvin is adamant the dairy group is not about to launch a $200 million counter takeover bid for Capilano Honey. The denial comes despite the company yesterday triggering a capital raising for a similar amount to strengthen its balance sheet and give it the financial muscle to react to any “opportunities” in the food sector. A scheme booklet from Capilano’s current and only takeover suitor, a consortium made up of Australian-Chinese private equity fund Wattle Hill, led by Albert Tse and ROC Partners investment fund, is believed to have been sent to the corporate regulator before it goes to shareholders. Advisers to Bega are hopeful the fact that Capilano is trading at almost $22 a share, well above the $20.06-a-share offer thrown down by the bidders, will make it difficult for the independent expert to label the bid “fair”, providing some wiggle room for shareholders to reject the offer and consider a rival offer — possibly from Bega. However, when looking over the scheme booklet the Australian Securities & Investments Commission can also consider the fact the private equity suitor is bidding for the entire company, not just a controlling stake. And it remains the only takeover offer on the table, for now.
Clearview Wealth Ltd (CVW):
ClearView chief risk officer Greg Martin called for his employees to be sacked after lashing the ASX-listed life insurer’s “fullon sales culture without much regard for customers” and admitting it had breached criminal anti-hawking laws more than 300,000 times. The royal commission heard that ClearView, which continues to be in the sights of the Australian Securities & Investments Commission over “systemic” failures in complying with laws designed to prevent spruikers forcing unwanted policies on customers, ran an outbound call centre where as much as 40 per cent of calls were non-compliant and targeted “poor” Australians with unnecessary policies. Senior counsel assisting the commission, Rowena Orr QC, kicked off the inquiry’s probe into the life insurance sector yesterday by detailing a stream of admissions of misconduct from the largest companies in the industry, pinning a key driver of unethical behaviour on the $6 billion worth of commissions paid to financial advisers over the five years to last year. Mr Martin, also chief actuary at the Sydney-based ClearView, was the first executive to be questioned at the royal commission’s fortnight of hearings.
Commonwealth Bank of Australia (CBA):
Slater and Gordon plans a series of class actions on behalf of “millions” of Australians against banks it says may have “gouged” their retirement savings. The law firm will today launch a “Get Your Super Back” campaign today, on behalf of Australians with savings in bank-owned super funds. It follows evidence at the royal commission of misconduct by the major banks. Slater and Gordon says it will allege big bankbacked super funds charged exorbitant fees and failed to obtain competitive cash interest rates for members on cash option funds. It says millions of members may have been affected. The campaign will involve a series of class actions and Commonwealth Bank-owned Colonial First State as well as AMP super are likely to be the first targets, Slater and Gordon said.
Harvey Norman Holdings Ltd (HVN):
Billionaire Gerry Harvey has said he will “put his money where his mouth is” and sell his investment portfolio to buy more shares in his under pressure retail giant Harvey Norman. But an analysis of his shareholdings shows some of Harvey’s shares are going quite well, meaning he faces a choice of selling and taking some profits off the table or staying in for some more growth. Either way, Harvey seems determined to silence the naysayers in Harvey Norman over corporate governance issues at Harvey Norman that include investments in a dairy business, criticism of its remuneration policy and the company’s financial accounts. He has said he will buy about $10 million worth of Harvey Norman shares, with documents lodged with the ASX already showing he has shelled out $8.03 million to buy 2.3 million shares at an average of $3.49.
Macquarie Group Ltd (MQG):
Macquarie Group has benefited from strong performance fees, continued growth in mortgages and solid trading conditions across most markets in the first three months of its financial year, as the bank continues to forecast a steady full-year profit. In a presentation released ahead of one that chief financial officer Alex Harvey is due to give in Hong Kong this week, the Australian company (MQG) today affirmed guidance given as recently as July that anticipated a net profit “broadly in line” with the previous year. The Australian bank, which has a reputation among analysts for conservative guidance, said it also expects its first-half profit to be in line with the year-earlier result, which included strong performance fees from its Macquarie Asset Management unit.
Pact Group Holdings Ltd (PGH):
Billionaire Raphael Geminder has rejected investor criticism the packaging company he controls, Pact Group, has become too -focused on acquisition-led growth after the manufacturer’s chief executive, Malcolm Bundey, was ousted after less than three years in the role. Mr Geminder and Mr Bundey talked over the weekend, when the latter offered his resignation. It is believed the former chief had been feeling the pressure internally and externally from investors for some time. The Australian can reveal Pact’s second-largest shareholder, Investors Mutual, wrote a letter to the company’s board two weeks ago after underwhelming annual earnings and called for a stronger performance from the packaging giant. Shares in the company have fallen by almost 30 per cent since its annual net profit missed market expectations last month and raised questions over its ability to successfully integrate recently -acquired businesses into the company fold.
Primary Health Care Ltd (PGH):
Shares in Primary Health Care lifted 1.8 per cent yesterday after the hospital operator flagged a higher full-year profit and announced it would acquire the Montserrat Day Hospitals network for $75 million. The purchase pushed Primary’s full-year profit forecast to $100m, up from $92.3m previously. “Montserrat with its combination of haematology/oncology clinics and day hospitals, will deliver synergies to the benefit of other divisions,” chief executive Malcolm Parmenter said. “We will be able to take advantage of Montserrat facilities as we grow our specialist businesses, like IVF. “We also expect that our pathology division will be able to organically grow revenue through Montserrat over time.” By adding seven specialist day hospitals and oncology clinics to Primary’s network, as well as three new facilities in the works, the purchase will allow it to derive revenue outside the Medicare benefits schedule, Primary’s CEO said yesterday.
Telstra Corporation Ltd (TLS):
Telstra boss Andy Penn is confident the proposed tie-up between TPG Telecom and Vodafone Hutchison Australia won’t have any bearing on the upcoming 5G mobile spectrum, as the incumbent looks to get its hands on the valuable asset as quickly as possible. TPG and Vodafone were expected to compete against one another at the auction, scheduled for late November, but talk is they have put in a joint application to the Australian Communications and Media Authority. News of the planned merger had raised concerns, most notably by Optus, that the timing of the auction may need to be revisited. However, Mr Penn said there was no reason to delay the auction and that he was pleased by the federal government’s commitment to getting the 5G spectrum into the market promptly. “Everyone has been fully aware of the terms of the auction and the government has communicated its intention to continue with the auction and it’s important to make sure that Australians can receive the benefit of 5G as soon as it becomes available,” he told The Australian after his keynote address at the meeting of international standard setting body 3GPP in the Gold Coast yesterday. The 3GPP meeting is being held to finalise the standards for 5G mobile technology.
Vocus Group Ltd (VOC):
Vocus Group’s long-term future in the Australian telecommunications market may be tied to the top-notch fibre infrastructure assets at its disposal but the telco isn’t ready to give up on the consumer broadband market just yet. Its Dodo brand has been given a complete overhaul, and the head of Vocus’s consumer business, Sandra de Castro, said the telco was hoping to leverage every ounce of its experience as a reseller to compete as a low-cost fixed broadband provider. The Dodo rebrand wasn’t just about cosmetic changes, Ms de Castro told The Australian, but also about providing customers with better value and a refreshed service experience.
(Source: AIMS)
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