AMP Limited (AMP):
Markets operator ASX says a rule requiring shareholder approval for major asset sales does not apply to AMP’s sale of its life insurance business and it will not reconsider its decision without “compelling” new evidence. Shareholders upset at the $3.3 billion price received by AMP for selling its life and mature businesses to Resolution Life last month have written to the ASX asking it to exercise discretion to force a shareholder vote on the sale. But in a letter to the ASX last week, ABL partner Jeremy Leibler called for an “urgent review” of the divestments and questioned whether the exchange had been provided with “all of the material information” before deciding it did not need approval. AMP sought approval from the ASX before announcing the deal nearly two weeks ago and was told it did not amount to the disposal of its main undertaking and did not require shareholder approval. But the exchange has since had letters from law firm Arnold Block Leibler on behalf of Merlon Capital, a 25 million-share holder, which has led opposition to a deal it says destroys $2bn of shareholder value.
Australian Whisky Holdings Ltd (AWY):
Australian Whisky Holdings has taken $12 million in funding from (very) sophisticated investors, including $5 million from Hong Kong-based Ace Cosmo Developments, which has struck a distribution agreement to sell the company's whiskey in Hong Kong for a year, possibly two. Ace Cosmo also gets a seat on the board, if it keeps holding about 122 million shares. The new investors will share 291 million ordinary shares issued at $0.041. The shares last traded at $0.044 and have opened at $0.045 this morning. The money will be used for a whisky buy-back program, repaying debt, and new infrastructure.
BHP Billiton Limited (BHP):
BHP has suspended all Western Australian iron ore rail operations after it was forced to deliberately derail a loaded runaway iron ore train early Monday morning. The big miner is yet to say how long it would take to clear the tracks and resume rail operations at its most profitable business, where 2km-long trains haul ore to port on a private railway. According to the Australian Transport Safety Bureau, a driver stopped a 268-wagon train on the Newman to Port Hedland rail to check an issue with a wagon at 4.40am on Monday. “While the driver was outside of the locomotive, the train commenced to run away,” the ATSB said. “With no one on board, the train travelled for 92 km until about 5.05am, when the train was deliberately derailed at a set of points operated by the control center.” The derailment happened about 119 km from Port Headland. The ATSB said it was investigating the incident.
CIMIC Group Ltd (CIM):
Construction company CIMIC's subsidiary Sedgman has won a $100 million contract to operate and maintain coal handling plants at Mount Pleasant and Byerwen. CIMIC expects the Mount Pleasant contract with Mach Energy to generate $75 million in revenue over three years, while the Byerwen contract with QCoal will generate about $25 million in revenue over one year.
Commonwealth Bank of Australia (CBA):
Commonwealth Bank of Australia, Link Group and Morgan Stanley Infrastructure have agreed to jointly purchase a majority stake in online property settlement group PEXA, in a sweetened deal that values the target at up to $1.6 billion. The transaction ends several attempts at an ASX listing for PEXA after fund managers baulked at valuations closer to $2 billion. PEXA has a mix of shareholders including the big four banks, Macquarie Group, state governments and billionaire Paul Little. A statement by PEXA - which allows property settlements and conveyancing to happen online - said the higher offer had been accepted by shareholdings representing greater than 50 per cent of the company’s issued capital. The price implies an enterprise value for PEXA of at least $1.5bn, which can potentially increase to $1.6bn depending on the level of final bid acceptances, it said. The statement outlined that as of 8pm AEST on Monday 55.4 per cent of shareholders had given the deal the thumbs up. Completion is subject to a range of conditions, but the transaction is expected to close before the end of calendar 2018.
Corporate Travel Management Ltd (CTD) and VGI Partners Global Investments Ltd (VG1):
Hedge fund VGI Partners says it has beefed up its bet against Corporate Travel Management, increasing its short position by 23 per cent and flagging more may be on the way. VGI made the disclosure in a 52-page letter to its investors, sent overnight, that also responds to Corporate Travel’s rebuttal of a devastating report by the hedge fund that last week carved 27 per cent from the company’s share price. The hedge fund now has “serious additional concerns” about Corporate Travel, it told investors. Shares in Corporate Travel Management have been halted for the second time in two weeks to allow the company to respond to a further report from short seller VGI Partners. Just six days after its first scathing report, VGI released a further attack on the company and increased its short position by 23 per cent.
Crown Resorts Ltd (CWN):
Crown Resorts has hit a one-year low at $11.66 this afternoon. It has fallen 18 per cent since August, when it reached a three and a half year high to $14.37. The casino's latest trading update was disappointing with main floor gaming down 0.6 per cent in the first quarter of the current financial year, compared to the same period in 2017. However, non-gaming revenue was up 3.5 per cent. VIP turnover was also lower than expected, although still growing. Morgan Stanley analysts last week gave the stock a target price of $13.50, providing economic conditions in Melbourne and Perth improve, and Crown can over-deliver on earnings from domestic VIPs. There is a risk a new Sydney casino project will blow out, and that China's anti-corruption measures will affect VIP customers visiting Australia.
Investa Office Fund (IOF):
D-day for Investa shareholders to vote on its proposed takeover by Oxford Properties has been set for December 4, with the fund urging unitholders to vote in favour of the scheme. Independent expert KPMG has assessed the bid of $5.60 cash per share is in the best interest for shareholders, in the absence of a superior proposal. Consequently, the earlier proposal from Blackstone has been terminated, with a break fee of $32 million. “In the Directors’ opinion, the cash nature of the Oxford Proposal offers IOF unitholders an opportunity to exit their investment in IOF at a price that is certain and which incorporates a substantial premium for control,” chairman Richard Longes said in a statement.
Origin Energy Ltd (ORG):
More gas is slated for the east coast under an agreement between Shell and Origin's subsidiaries that will open new supplies from a Queensland gas field by 2024. Australia Pacific LNG and Queensland Curtis LNG have signed a pipeline agreement that will allow one of the nation's largest onshore undeveloped gas resources, Arrow Energy's Surat Basin project in Queensland, to push more gas into the east coast market without having to build new infrastructure. APLNG is owned by Origin, ConocoPhillips and Sinopec while QCLNG is owned by Shell, which also has a large stake in Arrow Energy. QCLNG will be able to transport and process gas and water from Arrow Energy's Surat Basin gas field using the empty pipeline capacity – known as ullage - in APLNG's pipeline network from 2020 to 2035, with an option to extend to 2049, overcoming the need to invest in new gas pipelines and processing infrastructure to develop Arrow's gas.
RESMED/IDR UNRESTR (RMD):
Dual-listed ResMed has shed 1 per cent in late trade after announcing its US$750 million acquisition of MatrixCare overnight. The deal will add to ResMed’s current software-as-a-service offering - the privately held MatrixCare a leader in US long-term post-acute care software. ResMed will run the US$750m ($1.04 billion) deal primarily with its credit facility, the acquisition expected to be immediate accretive to nonGAAP gross margin and representing a valuation multiple of 25 times the expected 2018 pro forma earnings of $30m. “The acquisition of MatrixCare is an excellent addition to the out-of-hospital software portfolio that we can offer our healthcare provider customers,” ResMed chief Mick Farrell told the market.
Westpac Banking Corp (WBC):
Westpac chief executive Brian Hartzer has signaled he is open to offloading parts of the lender’s scandal-prone financial planning business, as his wealth arm mulls strategic options including alliances with external parties. After handing down a flat annual cash profit, Mr. Hartzer told The Australian Westpac was not necessarily wedded to in-house -financial planning, even though it was committed to the broader wealth sector spanning life insurance, private banking and its investment platform. His comments come as each of Westpac’s big bank rivals are in the process of unwinding their -financial planning businesses, through either a sale or, in Commonwealth Bank and National Australia Bank’s case, a stock market listing.
(Source: AIMS)
Markets operator ASX says a rule requiring shareholder approval for major asset sales does not apply to AMP’s sale of its life insurance business and it will not reconsider its decision without “compelling” new evidence. Shareholders upset at the $3.3 billion price received by AMP for selling its life and mature businesses to Resolution Life last month have written to the ASX asking it to exercise discretion to force a shareholder vote on the sale. But in a letter to the ASX last week, ABL partner Jeremy Leibler called for an “urgent review” of the divestments and questioned whether the exchange had been provided with “all of the material information” before deciding it did not need approval. AMP sought approval from the ASX before announcing the deal nearly two weeks ago and was told it did not amount to the disposal of its main undertaking and did not require shareholder approval. But the exchange has since had letters from law firm Arnold Block Leibler on behalf of Merlon Capital, a 25 million-share holder, which has led opposition to a deal it says destroys $2bn of shareholder value.
Australian Whisky Holdings Ltd (AWY):
Australian Whisky Holdings has taken $12 million in funding from (very) sophisticated investors, including $5 million from Hong Kong-based Ace Cosmo Developments, which has struck a distribution agreement to sell the company's whiskey in Hong Kong for a year, possibly two. Ace Cosmo also gets a seat on the board, if it keeps holding about 122 million shares. The new investors will share 291 million ordinary shares issued at $0.041. The shares last traded at $0.044 and have opened at $0.045 this morning. The money will be used for a whisky buy-back program, repaying debt, and new infrastructure.
BHP Billiton Limited (BHP):
BHP has suspended all Western Australian iron ore rail operations after it was forced to deliberately derail a loaded runaway iron ore train early Monday morning. The big miner is yet to say how long it would take to clear the tracks and resume rail operations at its most profitable business, where 2km-long trains haul ore to port on a private railway. According to the Australian Transport Safety Bureau, a driver stopped a 268-wagon train on the Newman to Port Hedland rail to check an issue with a wagon at 4.40am on Monday. “While the driver was outside of the locomotive, the train commenced to run away,” the ATSB said. “With no one on board, the train travelled for 92 km until about 5.05am, when the train was deliberately derailed at a set of points operated by the control center.” The derailment happened about 119 km from Port Headland. The ATSB said it was investigating the incident.
CIMIC Group Ltd (CIM):
Construction company CIMIC's subsidiary Sedgman has won a $100 million contract to operate and maintain coal handling plants at Mount Pleasant and Byerwen. CIMIC expects the Mount Pleasant contract with Mach Energy to generate $75 million in revenue over three years, while the Byerwen contract with QCoal will generate about $25 million in revenue over one year.
Commonwealth Bank of Australia (CBA):
Commonwealth Bank of Australia, Link Group and Morgan Stanley Infrastructure have agreed to jointly purchase a majority stake in online property settlement group PEXA, in a sweetened deal that values the target at up to $1.6 billion. The transaction ends several attempts at an ASX listing for PEXA after fund managers baulked at valuations closer to $2 billion. PEXA has a mix of shareholders including the big four banks, Macquarie Group, state governments and billionaire Paul Little. A statement by PEXA - which allows property settlements and conveyancing to happen online - said the higher offer had been accepted by shareholdings representing greater than 50 per cent of the company’s issued capital. The price implies an enterprise value for PEXA of at least $1.5bn, which can potentially increase to $1.6bn depending on the level of final bid acceptances, it said. The statement outlined that as of 8pm AEST on Monday 55.4 per cent of shareholders had given the deal the thumbs up. Completion is subject to a range of conditions, but the transaction is expected to close before the end of calendar 2018.
Corporate Travel Management Ltd (CTD) and VGI Partners Global Investments Ltd (VG1):
Hedge fund VGI Partners says it has beefed up its bet against Corporate Travel Management, increasing its short position by 23 per cent and flagging more may be on the way. VGI made the disclosure in a 52-page letter to its investors, sent overnight, that also responds to Corporate Travel’s rebuttal of a devastating report by the hedge fund that last week carved 27 per cent from the company’s share price. The hedge fund now has “serious additional concerns” about Corporate Travel, it told investors. Shares in Corporate Travel Management have been halted for the second time in two weeks to allow the company to respond to a further report from short seller VGI Partners. Just six days after its first scathing report, VGI released a further attack on the company and increased its short position by 23 per cent.
Crown Resorts Ltd (CWN):
Crown Resorts has hit a one-year low at $11.66 this afternoon. It has fallen 18 per cent since August, when it reached a three and a half year high to $14.37. The casino's latest trading update was disappointing with main floor gaming down 0.6 per cent in the first quarter of the current financial year, compared to the same period in 2017. However, non-gaming revenue was up 3.5 per cent. VIP turnover was also lower than expected, although still growing. Morgan Stanley analysts last week gave the stock a target price of $13.50, providing economic conditions in Melbourne and Perth improve, and Crown can over-deliver on earnings from domestic VIPs. There is a risk a new Sydney casino project will blow out, and that China's anti-corruption measures will affect VIP customers visiting Australia.
Investa Office Fund (IOF):
D-day for Investa shareholders to vote on its proposed takeover by Oxford Properties has been set for December 4, with the fund urging unitholders to vote in favour of the scheme. Independent expert KPMG has assessed the bid of $5.60 cash per share is in the best interest for shareholders, in the absence of a superior proposal. Consequently, the earlier proposal from Blackstone has been terminated, with a break fee of $32 million. “In the Directors’ opinion, the cash nature of the Oxford Proposal offers IOF unitholders an opportunity to exit their investment in IOF at a price that is certain and which incorporates a substantial premium for control,” chairman Richard Longes said in a statement.
Origin Energy Ltd (ORG):
More gas is slated for the east coast under an agreement between Shell and Origin's subsidiaries that will open new supplies from a Queensland gas field by 2024. Australia Pacific LNG and Queensland Curtis LNG have signed a pipeline agreement that will allow one of the nation's largest onshore undeveloped gas resources, Arrow Energy's Surat Basin project in Queensland, to push more gas into the east coast market without having to build new infrastructure. APLNG is owned by Origin, ConocoPhillips and Sinopec while QCLNG is owned by Shell, which also has a large stake in Arrow Energy. QCLNG will be able to transport and process gas and water from Arrow Energy's Surat Basin gas field using the empty pipeline capacity – known as ullage - in APLNG's pipeline network from 2020 to 2035, with an option to extend to 2049, overcoming the need to invest in new gas pipelines and processing infrastructure to develop Arrow's gas.
RESMED/IDR UNRESTR (RMD):
Dual-listed ResMed has shed 1 per cent in late trade after announcing its US$750 million acquisition of MatrixCare overnight. The deal will add to ResMed’s current software-as-a-service offering - the privately held MatrixCare a leader in US long-term post-acute care software. ResMed will run the US$750m ($1.04 billion) deal primarily with its credit facility, the acquisition expected to be immediate accretive to nonGAAP gross margin and representing a valuation multiple of 25 times the expected 2018 pro forma earnings of $30m. “The acquisition of MatrixCare is an excellent addition to the out-of-hospital software portfolio that we can offer our healthcare provider customers,” ResMed chief Mick Farrell told the market.
Westpac Banking Corp (WBC):
Westpac chief executive Brian Hartzer has signaled he is open to offloading parts of the lender’s scandal-prone financial planning business, as his wealth arm mulls strategic options including alliances with external parties. After handing down a flat annual cash profit, Mr. Hartzer told The Australian Westpac was not necessarily wedded to in-house -financial planning, even though it was committed to the broader wealth sector spanning life insurance, private banking and its investment platform. His comments come as each of Westpac’s big bank rivals are in the process of unwinding their -financial planning businesses, through either a sale or, in Commonwealth Bank and National Australia Bank’s case, a stock market listing.
(Source: AIMS)
Latest comments