Aurizon Holdings Ltd (AZJ):
A confidential discussion between Aurizon Holdings chief Andrew Harding and his Pacific National counterpart, Dean Dalla Valle, days before a Queensland intermodal freight deal was struck last year has been revealed as one of multiple disputed points in legal action the competition watchdog has brought against the two companies. The Australian Competition & Consumer Commission in June launched Federal Court action against rail freight hauler Aurizon and its private equity-owned rival Pacific National, alleging the pair reached a competition-restricting understanding in two deals worth $220 million through which Aurizon would exit its intermodal (combined rail and road) freight business by selling to Pacific National. Court documents obtained by The Australian reveal the ACCC has made allegations, kept confidential at Aurizon’s request, over what Mr Harding said to Mr Dalla Valle just a week after he had taken the helm at Pacific National. “Communication between Andrew Harding and Dean Dalla Valle occurred on a telephone call on July 25, 2017, on which Andrew Harding said the words to the effect that (redacted) and otherwise said words to the effect alleged,” the ACCC’s statement of claim says. The allegations have been redacted at Aurizon’s request for commercial reasons.
Bank of Queensland Limited (BOQ):
The way bankers and finance workers are paid will change, according to Bank of Queensland boss Jon Sutton, who called for the sector to own up to its mistakes and reform in the interests of customers. However, Mr Sutton declined to provide any guidance to whether the group’s contentious sale of its life insurance division, St Andrew’s, to troubled insurer Freedom Insurance, would be cleared by regulators. Yesterday, Mr Sutton became the first chief executive of a major financial group to publicly face questions from investors and analysts after Kenneth Hayne released his interim report from the first half of the banking royal commission last week. Unveiling a 5 per cent fall in annual net profit, which was dragged down by a substantial increase in costs spent on the year-long banking inquiry and a raft of regulatory reforms, Mr Sutton said he had read “a fair bit” of Mr Hayne’s scathing report and was now mulling over the 633 open questions asked by the former High Court judge in the -landmark document. The 1000- page report, which blamed rampant corporate greed and lazy regulators for the misconduct throughout the financial system, did not cover the superannuation or life insurance rounds of public hearings. They are due to be dealt with in his final report in February.
Beach Energy Ltd (BPT):
Israeli shipping and real estate billionaire Eyal Ofer has joined Kerry Stokes as an investor in the tight east coast gas market, agreeing to buy a 40 per stake in Beach Energy’s Otway Basin plots off the coast of Victoria for $344 million. Mr Ofer’s OG Energy has agreed to buy the stake from Beach, which is 25 per cent owned by Mr Stokes’ Seven Group, in a deal scheduled to be completed by the end of 2018-19. “With this acquisition, we have acquired a cornerstone producing asset around which we intend to continue to build the portfolio and grow our presence in Australia and the region,” Mr Ofer said. “We are excited at what the future holds,” said Mr Ofer, who also has oil and gas assets in New Zealand.
Coca-Cola Amatil Ltd (CCL):
Coca-Cola Amatil chief executive Alison Watkins is eager to tap into new beverage markets with -combined sales of more than $500 million a year after joining with US-based The Coca-Cola Company to take a 45 per cent stake in Made Group. Made owns a leading portfolio of drinks in coconut water, pressed juices and enhanced water. Ms Watkins has backed up her pledge to widen her bottler’s beverage portfolio beyond sugary carbonated drinks — a segment showing signs of slowing — to keep pace with consumer demand for healthier options. Coca-Cola Amatil will take the joint equity stake in Melbourne-based Made to give it access to the company’s brands, including Cocobella, Rokeby Farms, Impressed and the company’s first brand, NutrientWater, launched in 2005.
Commonwealth Bank of Australia (CBA):
Commonwealth Bank of Australia's retention of the nation's largest online broker, CommSec, is paying off as the group shrugged off impairments to post a solid lift in annual profit. Both CBA and rival National Australia Bank have committed to online broking, while ANZ Banking Group sealed a transaction last year that would see customers of ANZ Share Investing, formerly E*TRADE Australia, transition to a CMC platform. Westpac Banking Corp hasn't commented on the future of its online broking operations, suggesting it remains committed to the business. CommSec, short for Commonwealth Securities, posted a 13 per cent lift in profit to $114.2 million for the 12 months ended June 30, accounts lodged with the corporate regulator showed. Revenue was underpinned by brokerage revenue and commission and rose to $232.5 million in the period, from $211.4 million a year earlier. Higher management fees and transaction services costs pushed expenses higher though. They hit $78.5 million, up from $76.1 million in the 2017 fiscal year. But the 2018 results followed a slip in profit in the prior year as the bottom line was hit by impairments. In the year ended June 30, impairment losses were reined in to $7.7 million reflecting its investment in IWL, from $8 million in the prior period but didn't take the gloss off the headline earnings result.
Dexus Property Group (DXS):
Property giant Dexus has agreed to buy a 28.5 per cent stake in specialist funds manager Heathley for $11.3 million as it bulks up its interest in healthcare property. It also has an option to buy a further 21.5 per cent stake in the future. The will see Healthley manage a new healthcare real estate investment trust that will list on the ASX and in which Dexus will take a $37.3m cornerstone investment. Dexus said the deal was consistent with its plans to increase its exposure to healthcare property. “We are pleased to be able to partner with Heathley and look forward to continuing to build scale in this growing sector,” Dexus chief executive Darren Steinberg said. “Our investment in Heathley complements our existinghealthcare fund strategy and is a logical extension to our funds management platform, providing access to strong customer relationships in the sector.”
Genex Power Ltd (GNX):
A surge in intermittent wind and solar power generation may recede in the coming years as the market operator puts a greater emphasis on batteries, hydro and back-up systems to ensure the stability of the grid, Queensland renewable developer Genex Power has said. Australia will need to spend up to $27 billion to replace retiring coal plants in the next two decades, with a mix of solar, wind, storage and gas along with new investment in transmission tipped to fill the void. Industry players like Genex — developer of the Kidston large-scale solar and hydro project in north Queensland — say the transition to a lower-cost renewable-led power grid must be delicately handled to ensure security of supply.
Magellan Financial Group (MFG):
Hamish Douglass is focusing on what he does best. The legendary investor and Magellan Financial Group chief executive officer will today swap roles with the former chairman of the global fund manager he co-founded. Mr Douglass will continue to focus on his core investment responsibilities as chief investment officer and lead portfolio manager of Magellan’s Global Equities strategies, while Brett Cairns will become the CEO, having been chairman since 2014 and a non-executive director since 2007. Far from stepping back from investment management, the role change will free Mr Douglass to spend more time on investment management, thereby reinforcing his input into stock selection. That important fact wasn’t lost on investors. Magellan’s share price popped almost 8 per cent to $29.10.
Star Entertainment Group Ltd (SGR):
The Star Entertainment Group’s hopes of opening its $500 million Ritz-Carlton hotel in Sydney before rival Crown Resorts cuts the ribbon on its property in the harbour city have been dashed. The Star chief executive Matt Bekier yesterday said the “best case” now for the opening of the 61-storey hotel was in 2022, one year after Crown plans to open its $2 billion Sydney project. The Australia-listed casino company had hoped it would be able to open the hotel and residential tower just ahead of the James Packer-backed Crown -Resorts opened its doors. Mr Bekier said the timing on the Ritz-Carlton, a project The Star is developing with its Chinese joint venture partners, depended on the speed in which the planning application was processed. He said the project, which had been through an extensive community consultation process, still needed to be reviewed by the NSW Independent Planning Commission. The Crown Resorts property, which Mr Packer has described as his most important project, was scheduled to open in November next year, but that date has been pushed out to 2021.
Wesfarmers Ltd (WES):
Retail conglomerate Wesfarmers has requested a trading halt pending an announcement in relation to its proposed demerger of Coles Group. It requested the trading halt remain in place until October 9 unless it makes an announcement beforehand. Wesfarmers on March said it intended to demerge the supermarket chain, its largest division, to allow it to focus on growing its other divisions, which include Bunnings, Kmart, Target and Officeworks, and look for opportunities to buy new businesses. A court needs to approve the structure of the demerger before Wesfarmers can release the scheme booklet and other documents about the planned spin-off. Shareholders will vote on the demerger in November, and if voted up, Coles is expected to be listed on the ASX in November.
(Source: AIMS)
A confidential discussion between Aurizon Holdings chief Andrew Harding and his Pacific National counterpart, Dean Dalla Valle, days before a Queensland intermodal freight deal was struck last year has been revealed as one of multiple disputed points in legal action the competition watchdog has brought against the two companies. The Australian Competition & Consumer Commission in June launched Federal Court action against rail freight hauler Aurizon and its private equity-owned rival Pacific National, alleging the pair reached a competition-restricting understanding in two deals worth $220 million through which Aurizon would exit its intermodal (combined rail and road) freight business by selling to Pacific National. Court documents obtained by The Australian reveal the ACCC has made allegations, kept confidential at Aurizon’s request, over what Mr Harding said to Mr Dalla Valle just a week after he had taken the helm at Pacific National. “Communication between Andrew Harding and Dean Dalla Valle occurred on a telephone call on July 25, 2017, on which Andrew Harding said the words to the effect that (redacted) and otherwise said words to the effect alleged,” the ACCC’s statement of claim says. The allegations have been redacted at Aurizon’s request for commercial reasons.
Bank of Queensland Limited (BOQ):
The way bankers and finance workers are paid will change, according to Bank of Queensland boss Jon Sutton, who called for the sector to own up to its mistakes and reform in the interests of customers. However, Mr Sutton declined to provide any guidance to whether the group’s contentious sale of its life insurance division, St Andrew’s, to troubled insurer Freedom Insurance, would be cleared by regulators. Yesterday, Mr Sutton became the first chief executive of a major financial group to publicly face questions from investors and analysts after Kenneth Hayne released his interim report from the first half of the banking royal commission last week. Unveiling a 5 per cent fall in annual net profit, which was dragged down by a substantial increase in costs spent on the year-long banking inquiry and a raft of regulatory reforms, Mr Sutton said he had read “a fair bit” of Mr Hayne’s scathing report and was now mulling over the 633 open questions asked by the former High Court judge in the -landmark document. The 1000- page report, which blamed rampant corporate greed and lazy regulators for the misconduct throughout the financial system, did not cover the superannuation or life insurance rounds of public hearings. They are due to be dealt with in his final report in February.
Beach Energy Ltd (BPT):
Israeli shipping and real estate billionaire Eyal Ofer has joined Kerry Stokes as an investor in the tight east coast gas market, agreeing to buy a 40 per stake in Beach Energy’s Otway Basin plots off the coast of Victoria for $344 million. Mr Ofer’s OG Energy has agreed to buy the stake from Beach, which is 25 per cent owned by Mr Stokes’ Seven Group, in a deal scheduled to be completed by the end of 2018-19. “With this acquisition, we have acquired a cornerstone producing asset around which we intend to continue to build the portfolio and grow our presence in Australia and the region,” Mr Ofer said. “We are excited at what the future holds,” said Mr Ofer, who also has oil and gas assets in New Zealand.
Coca-Cola Amatil Ltd (CCL):
Coca-Cola Amatil chief executive Alison Watkins is eager to tap into new beverage markets with -combined sales of more than $500 million a year after joining with US-based The Coca-Cola Company to take a 45 per cent stake in Made Group. Made owns a leading portfolio of drinks in coconut water, pressed juices and enhanced water. Ms Watkins has backed up her pledge to widen her bottler’s beverage portfolio beyond sugary carbonated drinks — a segment showing signs of slowing — to keep pace with consumer demand for healthier options. Coca-Cola Amatil will take the joint equity stake in Melbourne-based Made to give it access to the company’s brands, including Cocobella, Rokeby Farms, Impressed and the company’s first brand, NutrientWater, launched in 2005.
Commonwealth Bank of Australia (CBA):
Commonwealth Bank of Australia's retention of the nation's largest online broker, CommSec, is paying off as the group shrugged off impairments to post a solid lift in annual profit. Both CBA and rival National Australia Bank have committed to online broking, while ANZ Banking Group sealed a transaction last year that would see customers of ANZ Share Investing, formerly E*TRADE Australia, transition to a CMC platform. Westpac Banking Corp hasn't commented on the future of its online broking operations, suggesting it remains committed to the business. CommSec, short for Commonwealth Securities, posted a 13 per cent lift in profit to $114.2 million for the 12 months ended June 30, accounts lodged with the corporate regulator showed. Revenue was underpinned by brokerage revenue and commission and rose to $232.5 million in the period, from $211.4 million a year earlier. Higher management fees and transaction services costs pushed expenses higher though. They hit $78.5 million, up from $76.1 million in the 2017 fiscal year. But the 2018 results followed a slip in profit in the prior year as the bottom line was hit by impairments. In the year ended June 30, impairment losses were reined in to $7.7 million reflecting its investment in IWL, from $8 million in the prior period but didn't take the gloss off the headline earnings result.
Dexus Property Group (DXS):
Property giant Dexus has agreed to buy a 28.5 per cent stake in specialist funds manager Heathley for $11.3 million as it bulks up its interest in healthcare property. It also has an option to buy a further 21.5 per cent stake in the future. The will see Healthley manage a new healthcare real estate investment trust that will list on the ASX and in which Dexus will take a $37.3m cornerstone investment. Dexus said the deal was consistent with its plans to increase its exposure to healthcare property. “We are pleased to be able to partner with Heathley and look forward to continuing to build scale in this growing sector,” Dexus chief executive Darren Steinberg said. “Our investment in Heathley complements our existinghealthcare fund strategy and is a logical extension to our funds management platform, providing access to strong customer relationships in the sector.”
Genex Power Ltd (GNX):
A surge in intermittent wind and solar power generation may recede in the coming years as the market operator puts a greater emphasis on batteries, hydro and back-up systems to ensure the stability of the grid, Queensland renewable developer Genex Power has said. Australia will need to spend up to $27 billion to replace retiring coal plants in the next two decades, with a mix of solar, wind, storage and gas along with new investment in transmission tipped to fill the void. Industry players like Genex — developer of the Kidston large-scale solar and hydro project in north Queensland — say the transition to a lower-cost renewable-led power grid must be delicately handled to ensure security of supply.
Magellan Financial Group (MFG):
Hamish Douglass is focusing on what he does best. The legendary investor and Magellan Financial Group chief executive officer will today swap roles with the former chairman of the global fund manager he co-founded. Mr Douglass will continue to focus on his core investment responsibilities as chief investment officer and lead portfolio manager of Magellan’s Global Equities strategies, while Brett Cairns will become the CEO, having been chairman since 2014 and a non-executive director since 2007. Far from stepping back from investment management, the role change will free Mr Douglass to spend more time on investment management, thereby reinforcing his input into stock selection. That important fact wasn’t lost on investors. Magellan’s share price popped almost 8 per cent to $29.10.
Star Entertainment Group Ltd (SGR):
The Star Entertainment Group’s hopes of opening its $500 million Ritz-Carlton hotel in Sydney before rival Crown Resorts cuts the ribbon on its property in the harbour city have been dashed. The Star chief executive Matt Bekier yesterday said the “best case” now for the opening of the 61-storey hotel was in 2022, one year after Crown plans to open its $2 billion Sydney project. The Australia-listed casino company had hoped it would be able to open the hotel and residential tower just ahead of the James Packer-backed Crown -Resorts opened its doors. Mr Bekier said the timing on the Ritz-Carlton, a project The Star is developing with its Chinese joint venture partners, depended on the speed in which the planning application was processed. He said the project, which had been through an extensive community consultation process, still needed to be reviewed by the NSW Independent Planning Commission. The Crown Resorts property, which Mr Packer has described as his most important project, was scheduled to open in November next year, but that date has been pushed out to 2021.
Wesfarmers Ltd (WES):
Retail conglomerate Wesfarmers has requested a trading halt pending an announcement in relation to its proposed demerger of Coles Group. It requested the trading halt remain in place until October 9 unless it makes an announcement beforehand. Wesfarmers on March said it intended to demerge the supermarket chain, its largest division, to allow it to focus on growing its other divisions, which include Bunnings, Kmart, Target and Officeworks, and look for opportunities to buy new businesses. A court needs to approve the structure of the demerger before Wesfarmers can release the scheme booklet and other documents about the planned spin-off. Shareholders will vote on the demerger in November, and if voted up, Coles is expected to be listed on the ASX in November.
(Source: AIMS)
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