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AUSTRALIA MARKETS( 2018-09-25)

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2018-09-25 17:15

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Tuesday, September 25, 2018
 
AGL Energy Ltd (AGL):
Victoria's largest energy supplier, AGL, has been fined almost $3 million for failing to provide efficiency data to the regulator. The Essential Services Commission on Monday confirmed that AGL had breached the Victorian Energy Efficiency Target scheme agreement, by failing to provide certificates showing the volume of electricity and gas they sell to Victorian customers. "AGL fully understood its responsibilities but failed to surrender the correct number of certificates," commission chair Ron Ben-David said, confirming AGL's failure to surrender more than 64,000 certificates in 2017.
 
Ainsworth Game Technology Limited (AGI):
Ainsworth Game Technology is on the hunt for a new chief executive after Danny Gladstone today set his end date in the role at June 30 next year. The company advised Mr Gladstone would continue to work with it in a different role after he steps down, in a bit to “utilise his extensive industry experience and expertise”. “Ainsworth is much stronger for Danny’s contribution. We are delighted he will continue to assist us in the future,” chairman Graeme Campbell said. “A thorough and extensive search process will be undertaken to secure a new CEO who can lead AGT to the next stages of growth and profitability.”
 
Centuria Capital Ltd (CNI):
Centuria Capital – the company of property veteran John McBain - has placed its shares in a trading halt this morning as it confirmed that it is conducting due diligence to buy a real estate portfolio for $650 million from the Hines Global REIT. It comes as it fights off takeover approaches from its rival. The Australian’s DataRoom column today revealed the news about the negotiations for the Hines assets and shares were placed in a halt shortly after trade when they initially soared. “Centuria Capital Group confirms that it is carrying out due diligence on these assets,” the company said in a statement with respect to the properties owned by Hines. The move is seen as significant by industry analysts who say that it indicates the group is eager to secure more funds to manage in the event that its Centuria Industrial REIT and possibly Centuria Metropolitan REIT are taken over. The situation is set against a backdrop where a fierce three-way takeover battle is unfolding between Centuria, Propertylink, which is founded and backed by former Valad Property Group founder Stephen Day, and the Warburg Pincus real estate arm ESR.
 
Immutep Ltd (IMM):
An Australian biotech firm will test its cancerous tumour-fighting drug in a clinical trial backed by pharmaceutical behemoths Merck and Pfizer. Immutep has signed an agreement with the pharma giants for an early phase clinical trial to test the benefits of combining its immunestimulating drug, eftilagimod alpha (efti) with avelumab, a targeted cancer therapy being developed by Merck and Pfizer. Efti stimulates the body's production of cancer-fighting t-cells while avelumab increases the ability of the immune system to detect and fight tumour cells. In a statement Monday, Immutep said the trial will evaluate the benefits of "releasing the brakes and pushing the accelerator" of the body's immune system at two different points of the cancer-fighting immune cycle. It will test the safety and tolerability of the paired drugs in patients with advanced, solid malignancies and is set to start before the end of the year.
 
Lynas Corporation Ltd (LYC):
Rare earths producer Lynas has come under the spotlight from the Malaysian environmental groups, calling for a government review into the company’s local operations. In a release this morning Lynas said it holds itself to a high standard and would cooperate with any review, confident in its performance. Speculation has hit its shares, trading down 18.1 per cent to $1.72 at lunch. Lynas defended its position, saying it had already been the subject of several previous reviews but that the leadership of any potential review could be concerning. “The media has speculated that the chair of the proposed committee may be a long time anti-Lynas campaigner. If that appointment is confirmed, then that will raise concerns. However, Lynas will advocate for a review that is transparent, impartial and scientific, consistent with other recent initiatives of the new government,” it said.
 
Regis Resources Limited (RRL):
Shares in takeover target Capricorn Metals has surged 50pc on news of its potential takeover by Regis Resources, but the buyers investors aren’t quite as convinced, slumping as much as 6.7pc. In a statement Monday, Regis confirmed media reports that it held discussions with Capricorn and made a confidential and incomplete takeover offer valuing the company at about $85.3 million. The indicative offer of 11.4 cents a share marks a 93 per cent premium to the stock’s closing price last Friday, although Regis said a binding offer is dependent on the support of Capricorn’s board, which has said it first wants the support of its major investors. Regis said that while other big shareholders have indicated their support, Hawke’s Point, with an almost 19pc stake, has to date not been prepared to back a deal. Shares in RRL are down 6.52pc at $3.87 while Capricorn’s are up 50.85pc at 8.9c.
 
Santos Ltd (STO):
Santos has signed up as the third customer for Jemena's new $800 million pipeline that will link the Northern Territory to the east coast gas grid, with gas to be transported to mining and mineral processing companies in Mount Isa. The three-year contract for 8.3 terajoules a day of gas, to be announced on last Friday, means that about 80 per cent of the Northern Gas Pipeline's capacity has been filled for its first year of operation. With further contracts under negotiation, the pipeline should be fully utilised when it comes onstream late this year, said Jemena's head of corporate development Antoon Boey. Mr Boey said the new agreement would see Jemena transport gas to Santos for three years from the first day of commercial pipeline operations. Santos Managing Director and CEO Kevin Gallagher said the agreement showed Santos was making domestic gas available where and when it is needed, efficiently and at competitive prices.
 
Scottish Pacific Group Ltd (SCO):
Finance group Scottish Pacific has recommended shareholders approve a $630 million takeover agreement with Affinity Equity partners. Affinity is offering $4.40 a share, an 18 per cent premium to its current trading price. SCO Chairman Patrick Elliot said the proposal, “represented a significant premium to SCO’s recent share price and entitles all SCO shareholder to receive up to 100 per cent of the scheme consideration in cash which provides value certainty for shareholders”. Affinity Equity is one of the largest independent private equity firms in the Asia-Pacific region, advising and managing about $US14 billion in funds and assets. Spun off from UBS AG in 2004, it recently completed raising $US6 billion in new capital for its Affinity Asia Pacific Fund V. Scottish Pacific offers debtor and trade finance in Australia and New Zealand and had a revenue of $108.6 million in the year through June. The deal remains subject to regulatory approvals, and Scottish Pacific said it plans to hold a shareholder vote on the proposal on November 30.
 
Sims Metal Management Ltd (SGM):
Shares in Sims Metal Management have dropped 11 per cent in early trade after it flagged issues in its SA Recylcing joint venture. In a note to shareholders this morning, it said it expected underlying earnings to be between $58 million and $63m for the first quarter of the financial year - less than the previous quarter but more than the same period last year. It said SA Recycling is expected to be between $10m and $15m lower than the previous quarter because of lower intake volumes and weaker zorba sales. SGM last down 10.76pc at $11.94.
 
Telstra Corporation Ltd (TLS):
Telstra’s venture capital arm is looking to invest in artificial intelligence and machine learning as the telco works to beef up its portfolio of applications and services. Telstra Ventures boss Mark Sherman told The Australian that AI was at the heart of the new software-driven business environment and is an important space for Telstra to get involved in. “We have made investments in drones, Internet of Things and cyber security, so there’s a lot there to go after, but anything that touches AI and machine learning is very important to us because it feeds into almost everything,” he said. Telstra, which is in the middle of a significant business overhaul, is working to move beyond its legacy of providing core connectivity to becoming a company that also offers a host of services, from data management to cyber security to businesses.
(Source: AIMS)
 
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