Austal Limited (ASB):
Aussie shipbuilder Austal has snagged a $97.7 million contract with Government of the Republic of Trinidad and Tabago to build a 94 metre high speed ferry. The catamaran ferry is set to be complete in mid-2020 and will provide passenger access between the nation’s two main islands. In a note to the market, Austal said the contract would help its new shipyard in Vietnam to be profitable within its first year of operations.
Graincorp Ltd (GNC):
Global insurance giant Allianz is believed to be the company willing to underwrite Australia's east coast grain market for the next 25-years, as part of a $3.3 billion takeover bid for grain handler GrainCorp. Street Talk understands GrainCorp bidder LongTerm Asset Partners has been talking to Allianz to take the agricultural risk associated with owning the company, which would underpin its proposed capital structure. Under the proposal, Allianz would write a contract to take out the weather risk and ensure Long-Term Asset Partners would be able to meet repayments on its $3.6 billion of lined up debt. It is not known how firm Allianz's commitment is to the deal, however the fact LTAP has approached GrainCorp and secured support from US investment bank Goldman Sachs and fund manager Westbourne Capital suggests it is very serious.
Metcash Limited (MTS):
Metcash shares have continued to fall, tumbling more than seven per cent a day after the company said it sees more tough times ahead in the supermarket sector. The IGA and Foodland supplier’s (MTS) shares were down 20 cents, or 7.6 per cent, to $2.43 at 2.25pm (AEDT), compounding investor woes after a 5 per cent fall yesterday. Tuesday’s decline is the biggest for Metcash since the 17.7 per cent fall that followed its May 28 announcement that a major South Australian customer would not be renewing its contract at the end of the 2019 financial year. The loss of the contract forced Metcash to make a $352 million impairment in its 2018 fullyear results, leading to a $149.5m loss. The company on Monday reported a three per cent lift in first-half profit but chief executive Jeff Adams told investors there is little relief on the horizon for players in a supermarket sector dominated by Woolworths and Coles, and facing pressure from the expansion of Aldi. Metcash’s hardware division could also begin to feel the pinch from the softening property market, Mr Adams said.
Nuheara Ltd (NUH):
ASX-listed smart earbuds maker Nuheara has raised $5 million with company set to use the funds to increase production of its IQbuds BOOST offering. Nuheara, which recently won a hearing aid supply contract from UK’s National Health Service (NHS), made a placement of approximately 66.6 million shares is at an issue price of 7.5 cents, a 4 per cent discount to the most recent closing price of 7.8 cents. The equity raising was backed by many of Nuheara’s existing institutional shareholders, including its largest shareholder Farjoy Pty Limited. Farjoy is the private investment vehicle of the Robertson family and headed by Tim Robertson QC. “Proceeds of the placement will be used to fund an increase in inventory levels of IQbuds BOOST following the product’s recent announcement to the UK NHS hearing aid supply contract,” the company said on Tuesday. The funds will also be deployed to ramp up sales and marketing, as well as development, of new products, including the IQstream TV and IQbuds MAX. Settlement and issue of the new fully paid ordinary shares taken up under the placement is scheduled for December 7. APP Securities Pty Limited and Patersons Securities Limited acted as joint lead managers for the placement.
ResMed Inc (RMD):
Dual-listed ResMed has announced its second major digital acquisition in a month, with the sleep device manufacturer to spend $US225 million ($A306 million) on asthma and pulmonary specialist Propeller Health. ResMed, which paid $US750 million for health software provider MatrixCare in November, will allow the Wisconsin-based Propellor Health to operate as a stand alone business as part of its new parent’s ResMed’s Respiratory Care portfolio. Propeller’s digital medicine platform consists of small sensors that attach to consumers’ asthma inhaler and pair with a mobile app to automatically track medication use and provide feedback and insights. “By working with Propeller’s existing partners ... we can positively impact the lives of even more of the 380 million people worldwide who are living with this debilitating chronic disease,” said ResMed chief executive Mick Farrell. ResMed said it will fund the acquisition via its credit facility, with a deal to be completed by April 2019.
Retail Food Group Limited (RFG):
Chief executive of embattled franchise operator Retail Food Group, Richard Hinson has resigned, days after pledging his commitment to its shareholders. It comes after just seven months in the job, with executive chairman Peter George to take over his responsibilities. It comes days after Mr Hinson stood before shareholders at the group’s annual meeting and pledged his commitment to the company’s future. “I can’t stand before you today and promise that in the 2019 financial year we will see an immediate and drastic improvement in our financial situation. But what I can promise you, is that as the group CEO, I will do everything in my power to bring about change for the better — as soon as we possibly can,” he said in a speech at the AGM last week. In a note to the market on Monday, the board said the exit was part of the major company restructure that had been flagged at the AGM.
Revasum Limited (RVS):
Washington H Soul Pattinson-backed semiconductor equipment maker Revasum has had a muted start on the ASX, with its shares slipping 12 cents to $1.88 in early afternoon trading. Revasum, valued at $153 million, has landed on the ASX after successfully completing a $30.7m initial public offering, issuing 15.4 million CDIs (CHESS depository interests) at $2.00 a CDI. Billionaire investor Robert Millner’s Washington H Soul Pattinson is joined by institutional investor Acorn Capital and the $5 billion fund manager Perennial Value Management. Silicon Valley venture capital fund Firsthand Ventures is the company’s biggest investor on listing, holding 70.4 per cent of Revasum’s common stock. Key Revasum management will own approximately 14.7 per cent of the company (on a fully diluted basis) following the listing.
TPG Telecom Ltd (TPM):
TPG Telecom is in hot water for pocketing an extra charge from its customers, with the Australian Competition and Consumer Commission taking the telco to Federal Court. According to the regulator, TPG (TPM) has misled customers over a $20 ‘prepayment’, which was used to cover the costs that might be incurred but are not included in their plan, such as overseas phone calls. TPG has highlighted in its website, since March 2013, that the prepayment of $20 could be used for excluded telecommunications services before the consumer cancelled their plan. However, the prepayment operates as a non-refundable fee and TPG retains at least $10 of the prepayment when a customer cancels their plan, a detail that was not clearly spelled out for the telco’s customers, according to ACCC’s deputy chair Delia Rickard. “A reasonable consumer would expect that this $20 payment would be refunded if it was not used, but in fact it is non-refundable.” It is unacceptable that TPG only disclose this forfeiture in fine print,” Ms Rickard said.
(Source: AIMS)
Aussie shipbuilder Austal has snagged a $97.7 million contract with Government of the Republic of Trinidad and Tabago to build a 94 metre high speed ferry. The catamaran ferry is set to be complete in mid-2020 and will provide passenger access between the nation’s two main islands. In a note to the market, Austal said the contract would help its new shipyard in Vietnam to be profitable within its first year of operations.
Graincorp Ltd (GNC):
Global insurance giant Allianz is believed to be the company willing to underwrite Australia's east coast grain market for the next 25-years, as part of a $3.3 billion takeover bid for grain handler GrainCorp. Street Talk understands GrainCorp bidder LongTerm Asset Partners has been talking to Allianz to take the agricultural risk associated with owning the company, which would underpin its proposed capital structure. Under the proposal, Allianz would write a contract to take out the weather risk and ensure Long-Term Asset Partners would be able to meet repayments on its $3.6 billion of lined up debt. It is not known how firm Allianz's commitment is to the deal, however the fact LTAP has approached GrainCorp and secured support from US investment bank Goldman Sachs and fund manager Westbourne Capital suggests it is very serious.
Metcash Limited (MTS):
Metcash shares have continued to fall, tumbling more than seven per cent a day after the company said it sees more tough times ahead in the supermarket sector. The IGA and Foodland supplier’s (MTS) shares were down 20 cents, or 7.6 per cent, to $2.43 at 2.25pm (AEDT), compounding investor woes after a 5 per cent fall yesterday. Tuesday’s decline is the biggest for Metcash since the 17.7 per cent fall that followed its May 28 announcement that a major South Australian customer would not be renewing its contract at the end of the 2019 financial year. The loss of the contract forced Metcash to make a $352 million impairment in its 2018 fullyear results, leading to a $149.5m loss. The company on Monday reported a three per cent lift in first-half profit but chief executive Jeff Adams told investors there is little relief on the horizon for players in a supermarket sector dominated by Woolworths and Coles, and facing pressure from the expansion of Aldi. Metcash’s hardware division could also begin to feel the pinch from the softening property market, Mr Adams said.
Nuheara Ltd (NUH):
ASX-listed smart earbuds maker Nuheara has raised $5 million with company set to use the funds to increase production of its IQbuds BOOST offering. Nuheara, which recently won a hearing aid supply contract from UK’s National Health Service (NHS), made a placement of approximately 66.6 million shares is at an issue price of 7.5 cents, a 4 per cent discount to the most recent closing price of 7.8 cents. The equity raising was backed by many of Nuheara’s existing institutional shareholders, including its largest shareholder Farjoy Pty Limited. Farjoy is the private investment vehicle of the Robertson family and headed by Tim Robertson QC. “Proceeds of the placement will be used to fund an increase in inventory levels of IQbuds BOOST following the product’s recent announcement to the UK NHS hearing aid supply contract,” the company said on Tuesday. The funds will also be deployed to ramp up sales and marketing, as well as development, of new products, including the IQstream TV and IQbuds MAX. Settlement and issue of the new fully paid ordinary shares taken up under the placement is scheduled for December 7. APP Securities Pty Limited and Patersons Securities Limited acted as joint lead managers for the placement.
ResMed Inc (RMD):
Dual-listed ResMed has announced its second major digital acquisition in a month, with the sleep device manufacturer to spend $US225 million ($A306 million) on asthma and pulmonary specialist Propeller Health. ResMed, which paid $US750 million for health software provider MatrixCare in November, will allow the Wisconsin-based Propellor Health to operate as a stand alone business as part of its new parent’s ResMed’s Respiratory Care portfolio. Propeller’s digital medicine platform consists of small sensors that attach to consumers’ asthma inhaler and pair with a mobile app to automatically track medication use and provide feedback and insights. “By working with Propeller’s existing partners ... we can positively impact the lives of even more of the 380 million people worldwide who are living with this debilitating chronic disease,” said ResMed chief executive Mick Farrell. ResMed said it will fund the acquisition via its credit facility, with a deal to be completed by April 2019.
Retail Food Group Limited (RFG):
Chief executive of embattled franchise operator Retail Food Group, Richard Hinson has resigned, days after pledging his commitment to its shareholders. It comes after just seven months in the job, with executive chairman Peter George to take over his responsibilities. It comes days after Mr Hinson stood before shareholders at the group’s annual meeting and pledged his commitment to the company’s future. “I can’t stand before you today and promise that in the 2019 financial year we will see an immediate and drastic improvement in our financial situation. But what I can promise you, is that as the group CEO, I will do everything in my power to bring about change for the better — as soon as we possibly can,” he said in a speech at the AGM last week. In a note to the market on Monday, the board said the exit was part of the major company restructure that had been flagged at the AGM.
Revasum Limited (RVS):
Washington H Soul Pattinson-backed semiconductor equipment maker Revasum has had a muted start on the ASX, with its shares slipping 12 cents to $1.88 in early afternoon trading. Revasum, valued at $153 million, has landed on the ASX after successfully completing a $30.7m initial public offering, issuing 15.4 million CDIs (CHESS depository interests) at $2.00 a CDI. Billionaire investor Robert Millner’s Washington H Soul Pattinson is joined by institutional investor Acorn Capital and the $5 billion fund manager Perennial Value Management. Silicon Valley venture capital fund Firsthand Ventures is the company’s biggest investor on listing, holding 70.4 per cent of Revasum’s common stock. Key Revasum management will own approximately 14.7 per cent of the company (on a fully diluted basis) following the listing.
TPG Telecom Ltd (TPM):
TPG Telecom is in hot water for pocketing an extra charge from its customers, with the Australian Competition and Consumer Commission taking the telco to Federal Court. According to the regulator, TPG (TPM) has misled customers over a $20 ‘prepayment’, which was used to cover the costs that might be incurred but are not included in their plan, such as overseas phone calls. TPG has highlighted in its website, since March 2013, that the prepayment of $20 could be used for excluded telecommunications services before the consumer cancelled their plan. However, the prepayment operates as a non-refundable fee and TPG retains at least $10 of the prepayment when a customer cancels their plan, a detail that was not clearly spelled out for the telco’s customers, according to ACCC’s deputy chair Delia Rickard. “A reasonable consumer would expect that this $20 payment would be refunded if it was not used, but in fact it is non-refundable.” It is unacceptable that TPG only disclose this forfeiture in fine print,” Ms Rickard said.
(Source: AIMS)
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