BHP Billiton Ltd (BHP) & Newcrest Mining (NCM):
Mining giant BHP has upped its share in SolGold Plc, bolstering its position against top shareholder Newcrest Mining as it eyes SolGold’s promising Cascabel copper-gold project in Ecuador. Under the deal, SolGold will issue 100 million shares to the company, raising its stake to 11.2 per cent from 6.0 per cent. BHP has agreed to pay 45 pence per SolGold share, which is at an about 36.6 per cent premium to the stock’s close on Monday. Gold miner Newcrest Mining Ltd is the top shareholder in SolGold, Cascabel’s majority owner and operator, with a 14.54 per cent stake. “This additional investment in SolGold strengthens our strategic position in the Cascabel copper exploration project,” BHP President Minerals Americas, Danny Malchuk said in a statement.
Fairfax Media Ltd (FXJ):
Fairfax Media chairman Nick Falloon has been forced to defend the publisher’s merger with Nine Entertainment following concerns from analysts that the deal could be in jeopardy. “The merger remains compelling despite recent market volatility,” Mr Falloon, who will take over as deputy chairman of the enlarged media company, said. “Fairfax shareholders will own 48.9 per cent of the merged entity and share in the longterm upside.” Under the deal, Fairfax shareholders will get a mix of cash and scrip, including 0.3627 Nine shares and 2.5c for each Fairfax share held. This implied a 22 per cent premium to its share price of 77c the day before the deal was -announced. Nine shares closed 1.3 per cent lower at $1.81 yesterday, while Fairfax finished flat at 67c.
National Australia Bank Ltd (NAB):
NAB is setting aside $314 million for customer remediation programs, becoming the latest big bank to take a big profit hit due to compensation. National Australia Bank says second-half cash earnings - the banks’ preferred measure of profitability - will take a $261 million hit from refunds and compensation for issues including adviser service fees and plan service fees, with the remaining $53 million coming from discontinued operations. The charges will be the last for NAB in the 2018 financial year, the results of which will be reported on November 1, but the lender says there could be more to come as customer remediation programs continue into FY19.
Navitas Ltd (NVT):
Education provider Navitas has stressed its independence from the takeover bid of a consortium of investors including its former chief and director Rod Jones. In a notice to the market today, Navitas said it was in the process of conducting a detailed review of the proposal, what would give its shareholders $5.50 cash per share. Since the receipt of the proposal, the company has suspended Mr Jones’ access to company information and excluding him from board participation. They stressed those conditions would remain while the review was conducted: “The Board emphasises that public statements made by Mr Jones endorsing the Indicative Proposal are his personal views and the Board is yet to form a view on the merits of the Indicative Proposal.”
Propertylink Group (PLG):
The Warburg Pincus-backed property Group ESR has lifted its takeover bid for Propertylink to $723 million. The higher offer of $1.20 per share is a 14.3 per cent premium to the real estate company’s closing price on September 20. On September 21, ESR offered $1.15 per share for the property investor and the board told shareholders to take no action. The Directors of Propertylink intend to recommend the latest bid, subject to an Independent Expert report indicating that the offer is fair and reasonable.
Rio Tinto Ltd (RIO):
Rio Tinto has flagged delays to the ramp up of the $US5.3 billion underground phase of the big Oyu Tolgoi copper and gold mine in Mongolia because of tough ground conditions that are likely to impede sinking of the mine shaft. The delays were revealed in Rio’s production report for the third-quarter, where deaths hit West Australian iron ore and South African titanium production and labour disruptions hit aluminium, titanium and Canadian iron ore output, but the group’s copper operations performed well. Rio cut full-year aluminium and titanium guidance but said expected output of iron ore, copper and bauxite would be at the upper end of previous guidance. Rio chief Jean-Sebastian Jacques said: “We continue to pursue all opportunities to improve productivity and drive enhanced cash flow generation. This, combined with the disciplined allocation of capital, will ensure we continue to deliver superior returns to our shareholders in the short, medium and long-term.” Rio said an annual review of the timeable and cost of Oyu Tolgoi found the ramp-up to full production would probably be delayed.
Wesfarmers Ltd (WES):
Wesfarmers will take the fattened Coles to the market next month for its $20 billion demerger, propelled by its strongest sales growth in almost three years thanks to the “Little Shop” collectables promotion, free plastic bags and bulging shopping baskets that combined to wrestle the ascendancy back from rival Woolworths. However, before investors flood the soon-to-be listed supermarket chain’s share register, hoping for the bumper sales bounce posted in the first quarter to stretch out for the rest of the year, new Coles chief executive Steven Cain has warned the sales growth will moderate to less than half that rate by Christmas. In the final sales release before Coles unshackles itself from Wesfarmers to become a new top 30 company on the ASX, the supermarket operator said first quarter sales had leapt 5.8 per cent to $7.657 billion. The results are the strongest comparable sales in 11 quarters, since the second quarter of 2016, and came at the perfect time as Wesfarmers prepares to demerge Coles in a $20bn deal that will see Coles shares list on the ASX on November 21.
Whitehaven Coal Ltd (WHC):
Whitehaven Coal says equity coal sales have fallen 14 per cent in the September quarter, as certain mechanical issues choked output from its Narrabri mine. Equity coal sales for the quarter came in at 4.1 million tonnes, compared to the 4.7 million tonnes clocked in the corresponding period a year ago. The figure overtook a UBS forecast of 3.84 million tonnes. This result follows a disappointing June quarter which saw equity coal sales decline seven per cent, again due to issues at Narrabri when the company had said longwall production at the mine is expected to recommence in September.
(Source: AIMS)
Mining giant BHP has upped its share in SolGold Plc, bolstering its position against top shareholder Newcrest Mining as it eyes SolGold’s promising Cascabel copper-gold project in Ecuador. Under the deal, SolGold will issue 100 million shares to the company, raising its stake to 11.2 per cent from 6.0 per cent. BHP has agreed to pay 45 pence per SolGold share, which is at an about 36.6 per cent premium to the stock’s close on Monday. Gold miner Newcrest Mining Ltd is the top shareholder in SolGold, Cascabel’s majority owner and operator, with a 14.54 per cent stake. “This additional investment in SolGold strengthens our strategic position in the Cascabel copper exploration project,” BHP President Minerals Americas, Danny Malchuk said in a statement.
Fairfax Media Ltd (FXJ):
Fairfax Media chairman Nick Falloon has been forced to defend the publisher’s merger with Nine Entertainment following concerns from analysts that the deal could be in jeopardy. “The merger remains compelling despite recent market volatility,” Mr Falloon, who will take over as deputy chairman of the enlarged media company, said. “Fairfax shareholders will own 48.9 per cent of the merged entity and share in the longterm upside.” Under the deal, Fairfax shareholders will get a mix of cash and scrip, including 0.3627 Nine shares and 2.5c for each Fairfax share held. This implied a 22 per cent premium to its share price of 77c the day before the deal was -announced. Nine shares closed 1.3 per cent lower at $1.81 yesterday, while Fairfax finished flat at 67c.
National Australia Bank Ltd (NAB):
NAB is setting aside $314 million for customer remediation programs, becoming the latest big bank to take a big profit hit due to compensation. National Australia Bank says second-half cash earnings - the banks’ preferred measure of profitability - will take a $261 million hit from refunds and compensation for issues including adviser service fees and plan service fees, with the remaining $53 million coming from discontinued operations. The charges will be the last for NAB in the 2018 financial year, the results of which will be reported on November 1, but the lender says there could be more to come as customer remediation programs continue into FY19.
Navitas Ltd (NVT):
Education provider Navitas has stressed its independence from the takeover bid of a consortium of investors including its former chief and director Rod Jones. In a notice to the market today, Navitas said it was in the process of conducting a detailed review of the proposal, what would give its shareholders $5.50 cash per share. Since the receipt of the proposal, the company has suspended Mr Jones’ access to company information and excluding him from board participation. They stressed those conditions would remain while the review was conducted: “The Board emphasises that public statements made by Mr Jones endorsing the Indicative Proposal are his personal views and the Board is yet to form a view on the merits of the Indicative Proposal.”
Propertylink Group (PLG):
The Warburg Pincus-backed property Group ESR has lifted its takeover bid for Propertylink to $723 million. The higher offer of $1.20 per share is a 14.3 per cent premium to the real estate company’s closing price on September 20. On September 21, ESR offered $1.15 per share for the property investor and the board told shareholders to take no action. The Directors of Propertylink intend to recommend the latest bid, subject to an Independent Expert report indicating that the offer is fair and reasonable.
Rio Tinto Ltd (RIO):
Rio Tinto has flagged delays to the ramp up of the $US5.3 billion underground phase of the big Oyu Tolgoi copper and gold mine in Mongolia because of tough ground conditions that are likely to impede sinking of the mine shaft. The delays were revealed in Rio’s production report for the third-quarter, where deaths hit West Australian iron ore and South African titanium production and labour disruptions hit aluminium, titanium and Canadian iron ore output, but the group’s copper operations performed well. Rio cut full-year aluminium and titanium guidance but said expected output of iron ore, copper and bauxite would be at the upper end of previous guidance. Rio chief Jean-Sebastian Jacques said: “We continue to pursue all opportunities to improve productivity and drive enhanced cash flow generation. This, combined with the disciplined allocation of capital, will ensure we continue to deliver superior returns to our shareholders in the short, medium and long-term.” Rio said an annual review of the timeable and cost of Oyu Tolgoi found the ramp-up to full production would probably be delayed.
Wesfarmers Ltd (WES):
Wesfarmers will take the fattened Coles to the market next month for its $20 billion demerger, propelled by its strongest sales growth in almost three years thanks to the “Little Shop” collectables promotion, free plastic bags and bulging shopping baskets that combined to wrestle the ascendancy back from rival Woolworths. However, before investors flood the soon-to-be listed supermarket chain’s share register, hoping for the bumper sales bounce posted in the first quarter to stretch out for the rest of the year, new Coles chief executive Steven Cain has warned the sales growth will moderate to less than half that rate by Christmas. In the final sales release before Coles unshackles itself from Wesfarmers to become a new top 30 company on the ASX, the supermarket operator said first quarter sales had leapt 5.8 per cent to $7.657 billion. The results are the strongest comparable sales in 11 quarters, since the second quarter of 2016, and came at the perfect time as Wesfarmers prepares to demerge Coles in a $20bn deal that will see Coles shares list on the ASX on November 21.
Whitehaven Coal Ltd (WHC):
Whitehaven Coal says equity coal sales have fallen 14 per cent in the September quarter, as certain mechanical issues choked output from its Narrabri mine. Equity coal sales for the quarter came in at 4.1 million tonnes, compared to the 4.7 million tonnes clocked in the corresponding period a year ago. The figure overtook a UBS forecast of 3.84 million tonnes. This result follows a disappointing June quarter which saw equity coal sales decline seven per cent, again due to issues at Narrabri when the company had said longwall production at the mine is expected to recommence in September.
(Source: AIMS)
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