Australia and New Zealand Banking Group (ANZ):
ANZ Bank stopped short of flagging any sweeping changes to its pay structure yesterday, despite joining two of its big four rivals in being stung by a landmark first strike against its 2018 remuneration report. At the bank’s annual meeting in Perth, investors delivered the David Gonski-led ANZ board a much smaller rebuke than that served up to National Australia Bank and Westpac. ANZ revealed 33.8 per cent of shareholders voted against the remuneration report at the meeting, surpassing the 25 per cent required for a strike. ANZ board member Paula Dwyer — who is chairman of Healthscope and Tabcorp — survived a strong protest vote of 27.1 per cent that was lodged against her re-election.
Avjennings Ltd (AVJ):
Residential property developer AVJennings has issued a pre-Christmas profit warning, saying that $11 million it had expected to book in this half had been pushed back as it faces with delays on settlements. In an ominous note the company said its board “will consider the matter of an interim dividend once the half-year result is finalised”. The setback reflects conditions that are hitting listed developers including Lendlease, Stockland and Mirvac, as well as private players that have come under pressure from financiers reluctant to lend to housing projects.
BWX Ltd (BWX):
Just days ahead of Christmas BWX Limited has revealed its second downgrade to earnings in less than three months, pointing the finger at slowing domestic export sales to China and lost momentum in its core US brands, Andalou Naturals and Mineral Fusion. The natural skin care products group also flagged that stocking of its key brand Sukin in Australia has been impacted by the transformation of the pharmacy sector with giant chain Chemist Warehouse moving to EBOS Group and API lobbing a bid for rival wholesaler Sigma Healthcare last Friday. The company said on Thursday morning it now expects normalised earnings before interest, tax, depreciation and amortisation (EBITDA) for the 2019 financial year to be in the range of $27 million to $32 million and EBITDA in the first half to be around $7 million.
Commonwealth Bank of Australia (CBA):
Commonwealth Bank has signed up with Alipay in a move that will allow Chinese tourists to make purchases in Australia via the world’s largest mobile payment platform. CBA (CBA) says local businesses will from Thursday be able to add the Alipay app to the bank’s so-called Albert payment terminals, allowing them to better tap the $10.9 billion Chinese tourist market. There are 94,000 of the wireless devices in Australia. “This is a game changer and we are thrilled to be the first major bank to provide Alipay as a payment option for customers,” CBA business customer solutions boss Clive Van Horen said.
Genex Power Ltd (GNX):
Hydro power generation company Genex has struck a long-term energy storage deal with EnergyAustralia. The agreement also provides for a proposed equity investment by EnergyAustralia into a newly created special purpose vehicle which will be incorporated to construct, own and operate the K2-Hydro project in far-north Queensland. “The term sheet from EnergyAustralia is a strong endorsement of the K2-Hydro project and its strategic value in the current environment of increasing penetration of renewable energy,” Genex chief executive James Harding said. “Following today’s announcement, we are now looking to close the financing of the K2-Hydro project on a stand-alone basis. “We believe this is the most efficient means to reach financial close and commence construction as soon as possible, anticipated in early 2019.” The long-term agreement is subject to final debt facility documentation, financial arrangements and agreements for grid connection, as well as approval by the boards of both companies.
MYOB Group Ltd (MYO):
KKR has cut its takeover price for MYOB, prompting directors of the Australian software company to say they won’t recommend the revised offer. MYOB said KKR is now offering $3.40 to acquire each share the private equity firm doesn’t already own, valuing the company at roughly $2.01 billion. KKR last month raised its proposed takeover price to $3.77 a share, from $3.70, prompting the Australian company to open its books. “Following completion of due diligence and finalization of debt funding commitments, KKR has revised the offer price to $3.40 per share,” MYOB said. Directors have told the private equity firm they won’t recommend the revised proposal to investors, although the companies remain in talks on the offer, MYOB said.
National Australia Bank Ltd (NAB):
National Australia Bank chairman Ken Henry has strongly backed chief executive Andrew Thorburn to deliver the remaining two years of NAB’s restructuring and raised the prospect of scrapping executive bonuses after a stinging 88 per cent vote against the bank’s remuneration report. Investors attacked NAB for a long list of sins, ranging from excessive pay to Dr Henry’s “pompous” performance in the royal commission, in a gruelling 4½-hour annual general meeting in Melbourne Wednesday. The AGM saw the bank suffer a record strike against a blue-chip company with the overwhelming vote of shareholders against the remuneration report. Investors also hit out at Mr Thorburn by delivering a 64.1 per cent vote against the granting of his reward shares and blocking the motion.
Reject Shop Ltd (TRS):
Allensford, the bidding vehicle of Raphael Geminder’s Kin Group, has called on The Reject Shop to provide an urgent trading update as it extended the offer period on its takeover bid for the discount retailer. Allensford said in a statement that The Reject Shop board was relying heavily on an improvement to comparable store sales for the critical month of December in order to meet its first-half guidance, and as such, should immediately update the market on its current trading performance. Comparable sales were already deteriorating at an “alarming” rate, and shareholders needed the updated trading information in order to make an informed decision on the takeover offer, Allensford said.
Serko Ltd (SKO):
he chief executive of business travel software group Serko says the acquisition of United States software company InterplX Inc will add an important on-the-ground operation in Serko's strategy to become a global player. Darrin Grafton said on Thursday the US purchase would also be a benefit to Serko's existing customers in Australasia which include 6,000 corporate entities along with travel management companies who combined book more than $6 billion of business travel each year through Serko's platforms. Serko has a dual listing on the New Zealand and Australian stock exchanges. Mr Grafon said it was also gratifying to be going against the usual trend in Australiasia where local companies were being acquired by big American players.
Stockland Corporation Ltd (SGP):
Three years after Stockland first examined a sale of its $1.1 billion retirement operation a divestment is back on the agenda, with the $8.86bn developer hiring advisers to sell all or part of the operation. In 2015, Stockland hired Macquarie Capital to explore a sale of at least 50 per cent of the business, but the process ended without a buyer being found. However, Morgan Stanley has had more success and sources suggest that it is now working for Stockland. Morgan Stanley did not comment. The American investment bank sold a 25 per cent stake in the Lendlease retirement arm for $425 million to Dutch pension fund APG in a deal that valued the operation at $1.7bn.
Westpac Banking Corp (WBC):
Westpac will next year revamp the criteria for access to its lucrative mortgage broker incentive scheme from quantity and loan size to customer service and quality. It comes as other lenders, including Bank of Queensland and Citi Australia, revamp their broker commission payments so that they are based on funds being used to pay the loan net of balances held in offset accounts. The changes are in response to bruising revelations during the banking royal commission and recommendations from the corporate regulator's review of broker pay.
Woodside Petroleum Ltd (WPL):
Australia’s three big oil and gas producers have shed a whopping $16.5 billion in value in just two months amid an ongoing and intense plunge in oil prices. Shares in Woodside Petroleum, Santos and Oil Search continued to bleed yesterday as investors responded to the latest 5 per cent-plus drop in international oil prices. The price of crude on Tuesday night touched its lowest level since October last year amid concerns about the strength of the global economy and growing expectations of a supply glut. Oil production from two of the globe’s most prolific producers, the US and Russia, have hit records in recent weeks.
(Source: AIMS)
ANZ Bank stopped short of flagging any sweeping changes to its pay structure yesterday, despite joining two of its big four rivals in being stung by a landmark first strike against its 2018 remuneration report. At the bank’s annual meeting in Perth, investors delivered the David Gonski-led ANZ board a much smaller rebuke than that served up to National Australia Bank and Westpac. ANZ revealed 33.8 per cent of shareholders voted against the remuneration report at the meeting, surpassing the 25 per cent required for a strike. ANZ board member Paula Dwyer — who is chairman of Healthscope and Tabcorp — survived a strong protest vote of 27.1 per cent that was lodged against her re-election.
Avjennings Ltd (AVJ):
Residential property developer AVJennings has issued a pre-Christmas profit warning, saying that $11 million it had expected to book in this half had been pushed back as it faces with delays on settlements. In an ominous note the company said its board “will consider the matter of an interim dividend once the half-year result is finalised”. The setback reflects conditions that are hitting listed developers including Lendlease, Stockland and Mirvac, as well as private players that have come under pressure from financiers reluctant to lend to housing projects.
BWX Ltd (BWX):
Just days ahead of Christmas BWX Limited has revealed its second downgrade to earnings in less than three months, pointing the finger at slowing domestic export sales to China and lost momentum in its core US brands, Andalou Naturals and Mineral Fusion. The natural skin care products group also flagged that stocking of its key brand Sukin in Australia has been impacted by the transformation of the pharmacy sector with giant chain Chemist Warehouse moving to EBOS Group and API lobbing a bid for rival wholesaler Sigma Healthcare last Friday. The company said on Thursday morning it now expects normalised earnings before interest, tax, depreciation and amortisation (EBITDA) for the 2019 financial year to be in the range of $27 million to $32 million and EBITDA in the first half to be around $7 million.
Commonwealth Bank of Australia (CBA):
Commonwealth Bank has signed up with Alipay in a move that will allow Chinese tourists to make purchases in Australia via the world’s largest mobile payment platform. CBA (CBA) says local businesses will from Thursday be able to add the Alipay app to the bank’s so-called Albert payment terminals, allowing them to better tap the $10.9 billion Chinese tourist market. There are 94,000 of the wireless devices in Australia. “This is a game changer and we are thrilled to be the first major bank to provide Alipay as a payment option for customers,” CBA business customer solutions boss Clive Van Horen said.
Genex Power Ltd (GNX):
Hydro power generation company Genex has struck a long-term energy storage deal with EnergyAustralia. The agreement also provides for a proposed equity investment by EnergyAustralia into a newly created special purpose vehicle which will be incorporated to construct, own and operate the K2-Hydro project in far-north Queensland. “The term sheet from EnergyAustralia is a strong endorsement of the K2-Hydro project and its strategic value in the current environment of increasing penetration of renewable energy,” Genex chief executive James Harding said. “Following today’s announcement, we are now looking to close the financing of the K2-Hydro project on a stand-alone basis. “We believe this is the most efficient means to reach financial close and commence construction as soon as possible, anticipated in early 2019.” The long-term agreement is subject to final debt facility documentation, financial arrangements and agreements for grid connection, as well as approval by the boards of both companies.
MYOB Group Ltd (MYO):
KKR has cut its takeover price for MYOB, prompting directors of the Australian software company to say they won’t recommend the revised offer. MYOB said KKR is now offering $3.40 to acquire each share the private equity firm doesn’t already own, valuing the company at roughly $2.01 billion. KKR last month raised its proposed takeover price to $3.77 a share, from $3.70, prompting the Australian company to open its books. “Following completion of due diligence and finalization of debt funding commitments, KKR has revised the offer price to $3.40 per share,” MYOB said. Directors have told the private equity firm they won’t recommend the revised proposal to investors, although the companies remain in talks on the offer, MYOB said.
National Australia Bank Ltd (NAB):
National Australia Bank chairman Ken Henry has strongly backed chief executive Andrew Thorburn to deliver the remaining two years of NAB’s restructuring and raised the prospect of scrapping executive bonuses after a stinging 88 per cent vote against the bank’s remuneration report. Investors attacked NAB for a long list of sins, ranging from excessive pay to Dr Henry’s “pompous” performance in the royal commission, in a gruelling 4½-hour annual general meeting in Melbourne Wednesday. The AGM saw the bank suffer a record strike against a blue-chip company with the overwhelming vote of shareholders against the remuneration report. Investors also hit out at Mr Thorburn by delivering a 64.1 per cent vote against the granting of his reward shares and blocking the motion.
Reject Shop Ltd (TRS):
Allensford, the bidding vehicle of Raphael Geminder’s Kin Group, has called on The Reject Shop to provide an urgent trading update as it extended the offer period on its takeover bid for the discount retailer. Allensford said in a statement that The Reject Shop board was relying heavily on an improvement to comparable store sales for the critical month of December in order to meet its first-half guidance, and as such, should immediately update the market on its current trading performance. Comparable sales were already deteriorating at an “alarming” rate, and shareholders needed the updated trading information in order to make an informed decision on the takeover offer, Allensford said.
Serko Ltd (SKO):
he chief executive of business travel software group Serko says the acquisition of United States software company InterplX Inc will add an important on-the-ground operation in Serko's strategy to become a global player. Darrin Grafton said on Thursday the US purchase would also be a benefit to Serko's existing customers in Australasia which include 6,000 corporate entities along with travel management companies who combined book more than $6 billion of business travel each year through Serko's platforms. Serko has a dual listing on the New Zealand and Australian stock exchanges. Mr Grafon said it was also gratifying to be going against the usual trend in Australiasia where local companies were being acquired by big American players.
Stockland Corporation Ltd (SGP):
Three years after Stockland first examined a sale of its $1.1 billion retirement operation a divestment is back on the agenda, with the $8.86bn developer hiring advisers to sell all or part of the operation. In 2015, Stockland hired Macquarie Capital to explore a sale of at least 50 per cent of the business, but the process ended without a buyer being found. However, Morgan Stanley has had more success and sources suggest that it is now working for Stockland. Morgan Stanley did not comment. The American investment bank sold a 25 per cent stake in the Lendlease retirement arm for $425 million to Dutch pension fund APG in a deal that valued the operation at $1.7bn.
Westpac Banking Corp (WBC):
Westpac will next year revamp the criteria for access to its lucrative mortgage broker incentive scheme from quantity and loan size to customer service and quality. It comes as other lenders, including Bank of Queensland and Citi Australia, revamp their broker commission payments so that they are based on funds being used to pay the loan net of balances held in offset accounts. The changes are in response to bruising revelations during the banking royal commission and recommendations from the corporate regulator's review of broker pay.
Woodside Petroleum Ltd (WPL):
Australia’s three big oil and gas producers have shed a whopping $16.5 billion in value in just two months amid an ongoing and intense plunge in oil prices. Shares in Woodside Petroleum, Santos and Oil Search continued to bleed yesterday as investors responded to the latest 5 per cent-plus drop in international oil prices. The price of crude on Tuesday night touched its lowest level since October last year amid concerns about the strength of the global economy and growing expectations of a supply glut. Oil production from two of the globe’s most prolific producers, the US and Russia, have hit records in recent weeks.
(Source: AIMS)
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