A2 Milk Company Ltd (A2M):
A2 Milk has welcomed an announcement by the Chinese Government that it would define the major cross border e-commerce players under a new policy framework, which a2 said would improve transparency and protect the rights and safety of consumers. On Friday, China’s Ministry of Finance announced its new policy framework, to define the major participants within the cross border e-commerce market and set out the responsibilities for those participants. The changes are set to help promote the healthy development of the cross border e-commerce retail import industry, and create a fair and competitive market environment. A2 Milk said it believes any large corporate enterprise will be considered a participant in the cross border e-commerce channel under the new law and policy framework. “The company welcomes this further guidance, which continues to demonstrate the Chinese Government’s support of this channel, with a strong focus on improving channel transparency and protecting the rights and safety of consumers,” the company said in a statement to the market on Monday. A2M up 2.55pc in early trade.
AMP Limited (AMP):
Francesco De Ferrari will take on the toughest role in corporate Australia today when he steps in as the new chief executive of scandal-ridden AMP, facing a mammoth task to get the under-fire wealth group back on track and fend off criticism about the sale of its life insurance division. Within the maelstrom of the royal commission, boardroom upheaval at AMP, disgruntled shareholders and angry customers, Mr De Ferrari has pledged to return the financial services group to growth but will bump up against clients dismissive of the tarnished AMP brand and financial advisers similarly wary of the toxic cloud around the company. “My immediate priority is to review the business model and develop our new strategy,’’ Mr De Ferrari said on his official start to running AMP. “The royal commission into the banking and -financial services industry has provided an additional impetus for change in our business and I’m determined we seize the opportunity. “Our focus must be on doing better for our customers, shareholders and people. I’m committed to taking decisive action to continue the reset of the business; and to earn back trust in driving the recovery of AMP.”
Ansell Limited (ANN):
Protective glove maker Ansell is set to shut three production facilities in Mexico and South Korea as it pushes to cut its annual expenses by $30 million by 2020. The health and safety protection manufacturer, which sold its condoms business for US$345 million last year, said on Monday it would close two plants in Juarez, Mexico, and one in Janggye, South Korea, as part of its transformation program announced in July 2017. Ansell said manufacturing activities would be consolidated in its facilities in Vietnam, Sri Lanka, Malaysia and Thailand. “With our streamlined manufacturing footprint at our best performing and most efficient sites, we expect to generate more than $20 million of annual cost savings, slightly above the plan announced in July 2017,” said chief executive Magnus Nicolin. The company’s transformation program is expected to achieve $30 million in savings by FY20.
BlueScope Steel Limited (BSL):
BlueScope has launched a new $250 million share buyback after the steelmaker last week confirmed a 10 per cent half-on-half increase in first-half underlying earnings. Managing director and chief executive Mark Vassella said BlueScope - which only recently completed a $250 million buyback launched after it more than doubled full-year profit - was now able to mix investment, acquisitions and shareholder returns thanks to the transformed business’s strong cash flows. “Naturally we will always invest to maintain safe and reliable operations, and seek to retain strong credit metrics,” Mr Vassella said. Australia’s largest steelmaker in August declared a net profit of $1.57 billion for the 12 months to June 30, a 119 per cent increase from a year ago. It told shareholders at last week’s annual general meeting that first-half underlying EBIT would be about 10 per cent higher than the previous half’s $745.0 million.
Graincorp Ltd (GNC):
The country’s largest grain handler GrainCorp has Monday announced receipt of a takeover offer from Long-Term Asset Partners, for $10.42 per share. It comes as the company conducts its own portfolio review, what it says will continue alongside its assessment of the offer, recommending that shareholders take no action. Further, it says the board needs further information on the identiy of the investors underpinning the LTAP proposal as it is a new entity and Graincorp would be its initial investment. GrainCorp last traded at $7.30, the offer representing a 43 per cent premium. Macquarie Capital is on hand to provide advice.
Metcash Limited (MTS):
Leading wholesale distributor Metcash has posted a 1.2 per cent increase in profits for the half-year, but warned of ‘challenging’ market conditions in food and particularly supermarkets. Metcash’s supermarket arm reported flat sales at $3.6 billion, with sales through IGA down 0.2 per cent on the previous half. Looking ahead, it said it expected the second half to be impacted by $8 million of investment in supermarket growth initiatives, with hardware to soften thanks to lower new construction and DIY activity. In Liquor, Metcash said volume growth over the rest of the year to continue to be at modest levels due to the on-going trend of lower consumption but higher quality and warned of the roll-out of the state container deposit schemes.
Nine Entertainment Co Holdings Ltd (NEC):
Nine Entertainment boss Hugh Marks has outlined a new corporate structure following its $4 billion merger with Fairfax Media, which will result in the axing of 92 staff. In a note to staff at Nine and Fairfax, Mr Marks said the new structure is designed to strengthen its “offerings to audiences and clients, including maximising our combined ability to invest in quality Australian content and journalism”. “In total 144 roles will be made redundant due to duplication and some vacant positions will no longer be required. This impacts approximately 92 people,” Mr Marks said in the note, seen by The Australian. “We have spoken to or will speak to those affected as soon as possible so that all employees have clarity and certainty before we commence operations as a combined business.” The enlarged group, to be called Nine, will be organised into four operating businesses, Australian Community Media, Printing and Stuff, Publishing, Stan and Television.
Reject Shop Ltd (TRS):
Reject Shop directors have recommended that shareholders reject a $78 million takeover bid, saying the offer made by a trust controlled by the Geminder family undervalues shares in the discount retailer. Earlier this Monday, the company said it would consider the unconditional on-market cash takeover from Allensford, the bidding vehicle of Raphael Geminder’s Kin Group, offering $2.70 a share. But in a target statement issued on Monday, The Reject Shop said directors unanimously recommend the “opportunistic” offer be rejected, saying it undervalues the company. “We ask our customers to reject high prices and paying more for big brands, but now your directors unanimously ask you, our shareholders, to put a high price on your brand, and to reject the offer,” chairman William Stevens said in a letter to shareholders.
Resonance Health Limited (RHT):
Aussie small cap Resonance Health has soared 130 per cent in Monday trade after it was grated US FDA approval for its liver iron concentrate diagnostic device FerriSmart. The device automatically analyses MRI images to return a liver iron quantification result, used in the treatment of blood disorders such as Thaassemia. In a note to the market, Resonance said the clearance would allow for the company to market FerriSmart for commercial distribution in the US. Shares in RHT last up 111.5pc to 5.5c, and as high as 6c.
Stanmore Coal Limited (SMR):
Golden Investments has today commenced its off-market takeover for Stanmore Coal, despite the target rejecting the 95c per share offer. In its bidder’s statement released today, Golden Investments said it offered a compelling opportunity amid an “uncertain global and local economic outlook, trade tensions between superpowers, rising interest rate volatility and volatility in energy markets”. It said it already had shored up 19.9 per cent voting power and was free of any funding conditions. Last week, Stanmore Coal chairman Stewart Butel urged investors to reject the bid, saying it undervalued shares and did not recognise the company’s growth strategy and assets.
(Source: AIMS)
A2 Milk has welcomed an announcement by the Chinese Government that it would define the major cross border e-commerce players under a new policy framework, which a2 said would improve transparency and protect the rights and safety of consumers. On Friday, China’s Ministry of Finance announced its new policy framework, to define the major participants within the cross border e-commerce market and set out the responsibilities for those participants. The changes are set to help promote the healthy development of the cross border e-commerce retail import industry, and create a fair and competitive market environment. A2 Milk said it believes any large corporate enterprise will be considered a participant in the cross border e-commerce channel under the new law and policy framework. “The company welcomes this further guidance, which continues to demonstrate the Chinese Government’s support of this channel, with a strong focus on improving channel transparency and protecting the rights and safety of consumers,” the company said in a statement to the market on Monday. A2M up 2.55pc in early trade.
AMP Limited (AMP):
Francesco De Ferrari will take on the toughest role in corporate Australia today when he steps in as the new chief executive of scandal-ridden AMP, facing a mammoth task to get the under-fire wealth group back on track and fend off criticism about the sale of its life insurance division. Within the maelstrom of the royal commission, boardroom upheaval at AMP, disgruntled shareholders and angry customers, Mr De Ferrari has pledged to return the financial services group to growth but will bump up against clients dismissive of the tarnished AMP brand and financial advisers similarly wary of the toxic cloud around the company. “My immediate priority is to review the business model and develop our new strategy,’’ Mr De Ferrari said on his official start to running AMP. “The royal commission into the banking and -financial services industry has provided an additional impetus for change in our business and I’m determined we seize the opportunity. “Our focus must be on doing better for our customers, shareholders and people. I’m committed to taking decisive action to continue the reset of the business; and to earn back trust in driving the recovery of AMP.”
Ansell Limited (ANN):
Protective glove maker Ansell is set to shut three production facilities in Mexico and South Korea as it pushes to cut its annual expenses by $30 million by 2020. The health and safety protection manufacturer, which sold its condoms business for US$345 million last year, said on Monday it would close two plants in Juarez, Mexico, and one in Janggye, South Korea, as part of its transformation program announced in July 2017. Ansell said manufacturing activities would be consolidated in its facilities in Vietnam, Sri Lanka, Malaysia and Thailand. “With our streamlined manufacturing footprint at our best performing and most efficient sites, we expect to generate more than $20 million of annual cost savings, slightly above the plan announced in July 2017,” said chief executive Magnus Nicolin. The company’s transformation program is expected to achieve $30 million in savings by FY20.
BlueScope Steel Limited (BSL):
BlueScope has launched a new $250 million share buyback after the steelmaker last week confirmed a 10 per cent half-on-half increase in first-half underlying earnings. Managing director and chief executive Mark Vassella said BlueScope - which only recently completed a $250 million buyback launched after it more than doubled full-year profit - was now able to mix investment, acquisitions and shareholder returns thanks to the transformed business’s strong cash flows. “Naturally we will always invest to maintain safe and reliable operations, and seek to retain strong credit metrics,” Mr Vassella said. Australia’s largest steelmaker in August declared a net profit of $1.57 billion for the 12 months to June 30, a 119 per cent increase from a year ago. It told shareholders at last week’s annual general meeting that first-half underlying EBIT would be about 10 per cent higher than the previous half’s $745.0 million.
Graincorp Ltd (GNC):
The country’s largest grain handler GrainCorp has Monday announced receipt of a takeover offer from Long-Term Asset Partners, for $10.42 per share. It comes as the company conducts its own portfolio review, what it says will continue alongside its assessment of the offer, recommending that shareholders take no action. Further, it says the board needs further information on the identiy of the investors underpinning the LTAP proposal as it is a new entity and Graincorp would be its initial investment. GrainCorp last traded at $7.30, the offer representing a 43 per cent premium. Macquarie Capital is on hand to provide advice.
Metcash Limited (MTS):
Leading wholesale distributor Metcash has posted a 1.2 per cent increase in profits for the half-year, but warned of ‘challenging’ market conditions in food and particularly supermarkets. Metcash’s supermarket arm reported flat sales at $3.6 billion, with sales through IGA down 0.2 per cent on the previous half. Looking ahead, it said it expected the second half to be impacted by $8 million of investment in supermarket growth initiatives, with hardware to soften thanks to lower new construction and DIY activity. In Liquor, Metcash said volume growth over the rest of the year to continue to be at modest levels due to the on-going trend of lower consumption but higher quality and warned of the roll-out of the state container deposit schemes.
Nine Entertainment Co Holdings Ltd (NEC):
Nine Entertainment boss Hugh Marks has outlined a new corporate structure following its $4 billion merger with Fairfax Media, which will result in the axing of 92 staff. In a note to staff at Nine and Fairfax, Mr Marks said the new structure is designed to strengthen its “offerings to audiences and clients, including maximising our combined ability to invest in quality Australian content and journalism”. “In total 144 roles will be made redundant due to duplication and some vacant positions will no longer be required. This impacts approximately 92 people,” Mr Marks said in the note, seen by The Australian. “We have spoken to or will speak to those affected as soon as possible so that all employees have clarity and certainty before we commence operations as a combined business.” The enlarged group, to be called Nine, will be organised into four operating businesses, Australian Community Media, Printing and Stuff, Publishing, Stan and Television.
Reject Shop Ltd (TRS):
Reject Shop directors have recommended that shareholders reject a $78 million takeover bid, saying the offer made by a trust controlled by the Geminder family undervalues shares in the discount retailer. Earlier this Monday, the company said it would consider the unconditional on-market cash takeover from Allensford, the bidding vehicle of Raphael Geminder’s Kin Group, offering $2.70 a share. But in a target statement issued on Monday, The Reject Shop said directors unanimously recommend the “opportunistic” offer be rejected, saying it undervalues the company. “We ask our customers to reject high prices and paying more for big brands, but now your directors unanimously ask you, our shareholders, to put a high price on your brand, and to reject the offer,” chairman William Stevens said in a letter to shareholders.
Resonance Health Limited (RHT):
Aussie small cap Resonance Health has soared 130 per cent in Monday trade after it was grated US FDA approval for its liver iron concentrate diagnostic device FerriSmart. The device automatically analyses MRI images to return a liver iron quantification result, used in the treatment of blood disorders such as Thaassemia. In a note to the market, Resonance said the clearance would allow for the company to market FerriSmart for commercial distribution in the US. Shares in RHT last up 111.5pc to 5.5c, and as high as 6c.
Stanmore Coal Limited (SMR):
Golden Investments has today commenced its off-market takeover for Stanmore Coal, despite the target rejecting the 95c per share offer. In its bidder’s statement released today, Golden Investments said it offered a compelling opportunity amid an “uncertain global and local economic outlook, trade tensions between superpowers, rising interest rate volatility and volatility in energy markets”. It said it already had shored up 19.9 per cent voting power and was free of any funding conditions. Last week, Stanmore Coal chairman Stewart Butel urged investors to reject the bid, saying it undervalued shares and did not recognise the company’s growth strategy and assets.
(Source: AIMS)
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