AGL Energy Limited (AGL):
A new $30 million battery connected into the grid in South Australia's lower Yorke Peninsula has reduced the risk of blackouts and beefed up the resilience of the supply system in one of the more vulnerable regions in the National Electricity Market. The 30-megawatt, 8 megawatt-hour battery, which is powered by AGL Energy's nearby Wattle Point wind farm and by rooftop solar PV, has come into operation as heatwave conditions put extra strain on the country's long and stringy power grid. It can provide back-up power to 4500 customers in the Dalrymple region for 2-3 hours in the event of an outage elsewhere in the SA network, said Steve Masters, chief executive of high voltage grid operator ElectraNet, which owns the battery.
Australia and New Zealand Banking Group (ANZ):
ANZ has not ruled out walking away from the sale of its pensions and investments business to under-fire wealth group IOOF after it delayed a key vote on the transaction but said it was engaging “vigorously” with the buyer. ANZ deputy chief executive Alexis George said the sale contract with IOOF was amended to ensure the separation of the bank’s life insurance unit — sold to Swiss giant Zurich — could occur before any final decisions on the pensions business were made. While sticking to the controversial deal for now, Ms George didn’t rule out ANZ shelving the sale of its pensions business to IOOF as the latter fights banning orders against four executives and its chairman and works to meet licence conditions imposed by the banking regulator.
Coles Group Limited (COL):
The governance at supermarket chain Coles has come under attack from an independent equity analyst who says the appointment of former Wesfarmers director James Graham as Coles chairman failed the "pub test". Scott Ryall, who heads the independent research firm Rimor Equity Research, has also criticised Graham for selling $15 million in Wesfarmers shares between the time he resigned as a director of Wesfarmers and joining the Coles board. Ryall says Graham appears to fit all the usual defi nitions of being independent, but his appointment was "a great example of where prescriptive tests and definitions do not capture all circumstances".
GPT Group (GPT):
The GPT Group has this morning announced plans to divest its 50 per cent share of the MLC Centre in Sydney’s CBD and use the proceeds to reinvest in Parramatta and Melbourne. Chief Bob Johnston said the Sydney office market had seen signi ficant growth over the past five years and the repositioning of the asset had generated “exceptional” returns for GPT. “The Group plans to reinvest the proceeds from the sale into its development pipeline, which includes the new office tower at 32 Smith Street, Parramatta, and a planned new office tower at Melbourne Central,” he said. “The Group will also continue to seek new Logistics development opportunities following the completion of a number of successful developments over the past two years.” The divestment of the MLC Centre is expected to be broadly neutral to earnings for the group in 2019 before any reinvestment of sale proceeds. Once finalised, GPT’s Sydney office holdings will reduce to 60 per cent, with weighting in Melbourne increasing to 34 per cent.
Michael Hill International Limited (MHJ):
Jewellery retailer Michael Hill has bucked recent negative retail trade updates, posting a Christmas boost for sales and improved sales momentum for the December quarter with a new chief at the helm. The chain reported a 2.9 per cent and 1.3 per cent rise in total sales and same store sales respectively for the combined November and December period, helped by a push in promotions and marketing in the lead-up to its largest trading months. It said sales momentum had picked up from disappointing trade in the first quarter — group revenues for continued operations were down 1.3 per cent, compared to the prior 8.8 per cent battering in October.
Navitas Limited (NVT):
The starting gun has been fired on a potential private equity spending spree this year after Ben Gray’s BGH increased its bid, delivering a $2.1 billion offer for education services provider Navitas. In the first major corporate deal of 2019, the investment firm said it would now offer $5.825 cash for each Navitas share, a 32.5c increase from its previous $5.50 bid that was rejected by the company’s board in November. The revised bid was recommended by the Navitas board but BGH and its Morgan Stanley advisers will carry out due diligence on the takeover target until February 18. Despite the board’s recommendation, investors remain wary of the risk that a final bid may not go ahead and Navitas stock closed last night at $5.53, about 5.3 per cent below the offer. It i s understood that BGH, which has raised about $2.6bn in cash, will fund about half of the deal’s value in equity and the remainder through debt.
(Source: AIMS)
A new $30 million battery connected into the grid in South Australia's lower Yorke Peninsula has reduced the risk of blackouts and beefed up the resilience of the supply system in one of the more vulnerable regions in the National Electricity Market. The 30-megawatt, 8 megawatt-hour battery, which is powered by AGL Energy's nearby Wattle Point wind farm and by rooftop solar PV, has come into operation as heatwave conditions put extra strain on the country's long and stringy power grid. It can provide back-up power to 4500 customers in the Dalrymple region for 2-3 hours in the event of an outage elsewhere in the SA network, said Steve Masters, chief executive of high voltage grid operator ElectraNet, which owns the battery.
Australia and New Zealand Banking Group (ANZ):
ANZ has not ruled out walking away from the sale of its pensions and investments business to under-fire wealth group IOOF after it delayed a key vote on the transaction but said it was engaging “vigorously” with the buyer. ANZ deputy chief executive Alexis George said the sale contract with IOOF was amended to ensure the separation of the bank’s life insurance unit — sold to Swiss giant Zurich — could occur before any final decisions on the pensions business were made. While sticking to the controversial deal for now, Ms George didn’t rule out ANZ shelving the sale of its pensions business to IOOF as the latter fights banning orders against four executives and its chairman and works to meet licence conditions imposed by the banking regulator.
Coles Group Limited (COL):
The governance at supermarket chain Coles has come under attack from an independent equity analyst who says the appointment of former Wesfarmers director James Graham as Coles chairman failed the "pub test". Scott Ryall, who heads the independent research firm Rimor Equity Research, has also criticised Graham for selling $15 million in Wesfarmers shares between the time he resigned as a director of Wesfarmers and joining the Coles board. Ryall says Graham appears to fit all the usual defi nitions of being independent, but his appointment was "a great example of where prescriptive tests and definitions do not capture all circumstances".
GPT Group (GPT):
The GPT Group has this morning announced plans to divest its 50 per cent share of the MLC Centre in Sydney’s CBD and use the proceeds to reinvest in Parramatta and Melbourne. Chief Bob Johnston said the Sydney office market had seen signi ficant growth over the past five years and the repositioning of the asset had generated “exceptional” returns for GPT. “The Group plans to reinvest the proceeds from the sale into its development pipeline, which includes the new office tower at 32 Smith Street, Parramatta, and a planned new office tower at Melbourne Central,” he said. “The Group will also continue to seek new Logistics development opportunities following the completion of a number of successful developments over the past two years.” The divestment of the MLC Centre is expected to be broadly neutral to earnings for the group in 2019 before any reinvestment of sale proceeds. Once finalised, GPT’s Sydney office holdings will reduce to 60 per cent, with weighting in Melbourne increasing to 34 per cent.
Michael Hill International Limited (MHJ):
Jewellery retailer Michael Hill has bucked recent negative retail trade updates, posting a Christmas boost for sales and improved sales momentum for the December quarter with a new chief at the helm. The chain reported a 2.9 per cent and 1.3 per cent rise in total sales and same store sales respectively for the combined November and December period, helped by a push in promotions and marketing in the lead-up to its largest trading months. It said sales momentum had picked up from disappointing trade in the first quarter — group revenues for continued operations were down 1.3 per cent, compared to the prior 8.8 per cent battering in October.
Navitas Limited (NVT):
The starting gun has been fired on a potential private equity spending spree this year after Ben Gray’s BGH increased its bid, delivering a $2.1 billion offer for education services provider Navitas. In the first major corporate deal of 2019, the investment firm said it would now offer $5.825 cash for each Navitas share, a 32.5c increase from its previous $5.50 bid that was rejected by the company’s board in November. The revised bid was recommended by the Navitas board but BGH and its Morgan Stanley advisers will carry out due diligence on the takeover target until February 18. Despite the board’s recommendation, investors remain wary of the risk that a final bid may not go ahead and Navitas stock closed last night at $5.53, about 5.3 per cent below the offer. It i s understood that BGH, which has raised about $2.6bn in cash, will fund about half of the deal’s value in equity and the remainder through debt.
(Source: AIMS)
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