Afterpay Touch Group (APT):
The high-flying “buy now, pay later” fintech company Afterpay Touch Group is set to dismiss suggestions it is taking advantage of a loophole in legislation so it can provide credit and lending services to financially vulnerable people. It is understood a submission to the Senate committee examining payday and other lending products will say that Afterpay created a new service based on a fundamentally different business model. It will argue that Afterpay profits from charging merchants a transaction fee, so the company benefits more from a customer paying on time rather than late. Customers can only make another purchase when their account is up to date. Last month, shares in Afterpay slumped after the revelation that the Senate economics references committee would probe sectors including payday lenders, consumer lease providers, and unlicensed financial service providers including “buy now, pay later” providers and short-term credit providers. The company said at the time it welcomed the opportunity to participate in any review and ensure its service was “clearly understood”.
AMP (AMP):
Key AMP shareholders claim the company has misled the market with the figures used to defend its decision not to have a vote on its $3.4 billion sale of wealth protection assets to UK-based Resolution. Hamish Carlisle, a portfolio manager from Merlon Capital Partners, claims AMP has not included royal commission costs in calculating its figures for the sale and also not included other relevant earnings from the divested assets. He has joined Simon Mawhinney from Allan Gray, the Australian Shareholders Association and Australian Council of Superannuation Investors in calling on AMP to have a vote on the deal arguing it undervalued the assets. AMP said in a statement on Friday the divested assets for the half-year ended June accounted for 34 per cent of revenue, 32 per cent of earnings, 31 per cent of after-tax profit and 25 per cent of assets.
Elders (ELD):
Shares in rural services group Elders shot up more than 8 per cent in early trade after the company delivered a 9 per cent lift in full year underlying profit and upped its final dividend. The underlying net profit figure of $63.7 million stripped out one-off costs, including operating losses and fair value adjustment related to the divestment of its Indonesia feedlot and abattoir operations, as well as cost association with an IT migration and M&A due diligence. Statutory full-year net profit after tax fell 38 per cent to $71.6m while revenue from continuing operations lifted 2 per cent on the prior year to $1.6 billion. The company will pay a final dividend of 9 cents a share fully franked, up from 7.5 cents last year. Elders (ELD) said its retail business improved due to acquisition activity in horticulture and organic growth across southern Australia, despite a dry winter cropping season. Meanwhile declining cattle prices impacted the company’s agency business, but that was partially offset by solid wool performance and increased sheep volumes.
Fairfax Media Limited(FXJ):
With Fairfax shareholders scheduled to vote next Monday on the merger with Nine Entertainment, it appears that all concerned are heading for a train wreck of Pilbara proportions. As Terry McCrann pointed out in The Weekend Australian, the value of Nine’s shares has been “shredded”, down 34 per cent since the merger was announced in July. Fairfax shares are down 19 per cent. This part is no accident. The main reasons Nine wanted Fairfax was to get its hands on digital property arm Domain and the movie-streaming business Stan, which it jointly owns. Domain is now coming under cyclical pressure. It lost its boss, Antony Catalano, early this year and, over time, both Domain and realestate.com.au owner REA face disintermediation forces from the data revolution.Domain doesn’t have the audience reach of REA and, as the No 2 player, would suffer most from a prolonged downturn in the housing market as “For sale” listings slip.Stan is also No 2 behind Netflix in a market which is also facing intense competitive pressure from numerous “over-the-top” new players, including a new streaming offer from CBS-Ten.
Healthscope (HSO):
Healthscope has opened its books to Brookfield Capital Partners after the private equity firm made a $4.5 billion play for the private hospital operator, trumping a rival offer already on the table. Healthscope (HSO) says Brookfield’s offer beats one it had rejected earlier this year, and is worth as much as $2.585 per share — more than the $2.36 offered last month by private equity firm BGH Capital and AustralianSuper. Brookfield has been granted exclusive due diligence so it can come up with a binding offer for Healthscope, whose shares have jumped more than 15 per cent since the BGH-AustralianSuper consortium made what was also its second approach.
Lendlease (LLC):
Construction and development giant Lendlease faces another week of intense pressure as it considers dumping its underperforming engineering unit or ways to moderate its volatile earnings as the annual general meeting approaches on Friday. The meeting, the last which veteran chairman David Crawford will preside, could see investors to pursue the company on the struggling division’s future and its push into infrastructure construction, which stepped up with the 2010 purchase of the Valemus business for $960 million. The company’s revelation of a shock $350m writedown on the engineering unit prompted a raft of downgrades and calls for it to s jump from its current stake of 19.8 per cent to between 35.1 per cent and 44.2 per cent, depending on whether remaining shareholders choose cash or scrip.
Navitas (NVT):
Adult education provider Navitas has rejected a further takeover offer from a BGH Capital-led consortium, saying the offer price had remained the same and the terms and conditions were also similar. Navitas (NVT) last month rebuffed an offer from its founder and the private equity firm, but said it was open to talks. In a statement on Monday, the company maintained its view that the offer undervalued the company and said its board was exploring a transaction with a number of other parties. Navitas shares fell more than three per cent to $5.08, below the offer price of $5.50 per share.ell off the business, which investors see as a drag on a company that has an overall workbook of more than $70 billion. It is understood that the company has long been advised by investment banks to spin off its engineering unit because of the risk of costly project blowouts detracting from its successful global urban development and funds management business.
Macquarie Group (MGQ):
Macquarie Group has exited its stake in online property settlement company Property Exchange Australia (PEXA), with a Link Group-led consortium to take full ownership of the $1.6 billion business. The bank’s exit from its $400m stake was set in train last week when Link, backed by Morgan Stanley Infrastructure and Commonwealth Bank, secured a stake of 55.4 per cent in PEXA, after float plans were derailed. Link Group today confirmed that the consortium’s bid had now been accepted by shareholdings representing more than 82 per cent of PEXA’s register. It said that remaining shareholders “will be dragged by the consortium pursuant to PEXA shareholders’ agreement” and they could elect to receive cash or scrip in the consortium’s acquisition vehicle. The consortium, advised by JP Morgan, will pay an enterprise value of $1.604bn for PEXA and Link’s holdings will.
(Source：AIMS)
The high-flying “buy now, pay later” fintech company Afterpay Touch Group is set to dismiss suggestions it is taking advantage of a loophole in legislation so it can provide credit and lending services to financially vulnerable people. It is understood a submission to the Senate committee examining payday and other lending products will say that Afterpay created a new service based on a fundamentally different business model. It will argue that Afterpay profits from charging merchants a transaction fee, so the company benefits more from a customer paying on time rather than late. Customers can only make another purchase when their account is up to date. Last month, shares in Afterpay slumped after the revelation that the Senate economics references committee would probe sectors including payday lenders, consumer lease providers, and unlicensed financial service providers including “buy now, pay later” providers and short-term credit providers. The company said at the time it welcomed the opportunity to participate in any review and ensure its service was “clearly understood”.
AMP (AMP):
Key AMP shareholders claim the company has misled the market with the figures used to defend its decision not to have a vote on its $3.4 billion sale of wealth protection assets to UK-based Resolution. Hamish Carlisle, a portfolio manager from Merlon Capital Partners, claims AMP has not included royal commission costs in calculating its figures for the sale and also not included other relevant earnings from the divested assets. He has joined Simon Mawhinney from Allan Gray, the Australian Shareholders Association and Australian Council of Superannuation Investors in calling on AMP to have a vote on the deal arguing it undervalued the assets. AMP said in a statement on Friday the divested assets for the half-year ended June accounted for 34 per cent of revenue, 32 per cent of earnings, 31 per cent of after-tax profit and 25 per cent of assets.
Elders (ELD):
Shares in rural services group Elders shot up more than 8 per cent in early trade after the company delivered a 9 per cent lift in full year underlying profit and upped its final dividend. The underlying net profit figure of $63.7 million stripped out one-off costs, including operating losses and fair value adjustment related to the divestment of its Indonesia feedlot and abattoir operations, as well as cost association with an IT migration and M&A due diligence. Statutory full-year net profit after tax fell 38 per cent to $71.6m while revenue from continuing operations lifted 2 per cent on the prior year to $1.6 billion. The company will pay a final dividend of 9 cents a share fully franked, up from 7.5 cents last year. Elders (ELD) said its retail business improved due to acquisition activity in horticulture and organic growth across southern Australia, despite a dry winter cropping season. Meanwhile declining cattle prices impacted the company’s agency business, but that was partially offset by solid wool performance and increased sheep volumes.
Fairfax Media Limited(FXJ):
With Fairfax shareholders scheduled to vote next Monday on the merger with Nine Entertainment, it appears that all concerned are heading for a train wreck of Pilbara proportions. As Terry McCrann pointed out in The Weekend Australian, the value of Nine’s shares has been “shredded”, down 34 per cent since the merger was announced in July. Fairfax shares are down 19 per cent. This part is no accident. The main reasons Nine wanted Fairfax was to get its hands on digital property arm Domain and the movie-streaming business Stan, which it jointly owns. Domain is now coming under cyclical pressure. It lost its boss, Antony Catalano, early this year and, over time, both Domain and realestate.com.au owner REA face disintermediation forces from the data revolution.Domain doesn’t have the audience reach of REA and, as the No 2 player, would suffer most from a prolonged downturn in the housing market as “For sale” listings slip.Stan is also No 2 behind Netflix in a market which is also facing intense competitive pressure from numerous “over-the-top” new players, including a new streaming offer from CBS-Ten.
Healthscope (HSO):
Healthscope has opened its books to Brookfield Capital Partners after the private equity firm made a $4.5 billion play for the private hospital operator, trumping a rival offer already on the table. Healthscope (HSO) says Brookfield’s offer beats one it had rejected earlier this year, and is worth as much as $2.585 per share — more than the $2.36 offered last month by private equity firm BGH Capital and AustralianSuper. Brookfield has been granted exclusive due diligence so it can come up with a binding offer for Healthscope, whose shares have jumped more than 15 per cent since the BGH-AustralianSuper consortium made what was also its second approach.
Lendlease (LLC):
Construction and development giant Lendlease faces another week of intense pressure as it considers dumping its underperforming engineering unit or ways to moderate its volatile earnings as the annual general meeting approaches on Friday. The meeting, the last which veteran chairman David Crawford will preside, could see investors to pursue the company on the struggling division’s future and its push into infrastructure construction, which stepped up with the 2010 purchase of the Valemus business for $960 million. The company’s revelation of a shock $350m writedown on the engineering unit prompted a raft of downgrades and calls for it to s jump from its current stake of 19.8 per cent to between 35.1 per cent and 44.2 per cent, depending on whether remaining shareholders choose cash or scrip.
Navitas (NVT):
Adult education provider Navitas has rejected a further takeover offer from a BGH Capital-led consortium, saying the offer price had remained the same and the terms and conditions were also similar. Navitas (NVT) last month rebuffed an offer from its founder and the private equity firm, but said it was open to talks. In a statement on Monday, the company maintained its view that the offer undervalued the company and said its board was exploring a transaction with a number of other parties. Navitas shares fell more than three per cent to $5.08, below the offer price of $5.50 per share.ell off the business, which investors see as a drag on a company that has an overall workbook of more than $70 billion. It is understood that the company has long been advised by investment banks to spin off its engineering unit because of the risk of costly project blowouts detracting from its successful global urban development and funds management business.
Macquarie Group (MGQ):
Macquarie Group has exited its stake in online property settlement company Property Exchange Australia (PEXA), with a Link Group-led consortium to take full ownership of the $1.6 billion business. The bank’s exit from its $400m stake was set in train last week when Link, backed by Morgan Stanley Infrastructure and Commonwealth Bank, secured a stake of 55.4 per cent in PEXA, after float plans were derailed. Link Group today confirmed that the consortium’s bid had now been accepted by shareholdings representing more than 82 per cent of PEXA’s register. It said that remaining shareholders “will be dragged by the consortium pursuant to PEXA shareholders’ agreement” and they could elect to receive cash or scrip in the consortium’s acquisition vehicle. The consortium, advised by JP Morgan, will pay an enterprise value of $1.604bn for PEXA and Link’s holdings will.
(Source：AIMS)
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