Perpetual Limited (PPT):
The world’s largest asset manager BlackRock has acquired a 12.5 per cent stake in the $1.93 billion fund manager Perpetual, prompting questions as to whether it is a takeover target. However, market sources say the acquisition was likely to do with a move to buy shares for one of its exchange traded funds and played down the likelihood of a takeover. It comes after Perpetual’s share price last week rallied more than 12 per cent in one trading session, prompting a ‘please explain’ from the Australian Securities Exchange to which it said it knew of no reason for the share price rally. BlackRock is the world’s largest asset manager, based in New York and currently has US$5.98 trillion in assets under management. In a notice to the ASX today, it was revealed that the company had amassed about 12.5 per cent in Perpetual. It operates with 70 offices in 30 countries and some question whether the group could be eager to lift its exposure to the Australian market.
Caltex Australia Ltd (CTX):
Caltex has trimmed forcasts for its convenience retail division, citing a softening in retail fuel margins thanks to the rebound in the crude oil price and competitor activity. In a first quarter update, it said total fuel and shop margins for the quarter were between $160 million and $170m, $35m to $45m less than the same quarter last year. The petrol station operator said it was largely the fuel margin driving the falls, with the shop margin in line with the previous quarter. “While Q1 looks challenging, Caltex notes that short term trading conditions are not necessarily a reliable indicator of the full year result. External drivers such as movements in underlying crude and product prices, and changes in competitor pricing strategies can result in material variances between periods,” it said.
McMillan Shakespeare Ltd (MMS):
McMillan Shakespeare shareholders are believed to have expressed concern about its plans to merge with Eclipx and are quietly hoping, behind the scenes, that the company will recut the terms of its merger with Eclipx or walk away from the deal completely. It comes as Eclipx remained in a trading halt yesterday ahead of the release of a trading update and McMillan Shakespeare says it will review its position following that update’s release. The expectation is it will abandon the transaction or recut the terms. While some say it is almost impossible for McMillan Shakespeare to break its deal to join forces with Eclipx, others say it is not impossible for the group to back out of the arrangement and believe the company’s share price will rally by more than 10 per cent as a result. The thinking among some is that McMillan Shakespeare’s recent half-year earnings result, where it posted a slightly lower interim net profit of $50.8 million, proved the company was not a poor performer. Eclipx, on the other hand, has announced two recent profit downgrades, causing shares to fall even further than they did in January to $1.885, valuing the business now at $602.5m compared to almost $850m in January.
New Hope Corporation Ltd (NHC):
New Hope Group has posted record results for the half year, thanks in most part to its increased stake in the Bengall coal mine. The Company delivered net profit after tax of $159.8 million, 33 per cent higher than the $120.3m recorded in the same period last year. “Increased production at Bengalla saw the mine deliver a Net Profit Before Tax of $126.6 million for the period. Queensland mining operations contributed a Net Profit Before Tax of $110.9 million and ensured a record first half result for the Company,” managing directoro Shane Stephan said. The company recently took an additional 30 per cent stake in Bengalla, to take its ownership to 70pc. “Our focus for the future remains on safe and efficient production at existing operations, enabling commencement of mining operations at the Lenton Joint Venture Burton Mine and extending the life of operations at New Acland.” Mr Stephan said.
Orica Ltd (ORI):
Orica director Ian Cockeril will step down from the company’s board after 9 years of service. In a note to the market this morning, Orica said the move was in accordance with its normal board succession practices, and that it was “well advanced” in finding a replacement. “Ian has served the shareholders of Orica as a Non-executive Director for almost 9 years and has made a significant contribution to the Board’s oversight of the business,” chair Malcolm Broomhead said. “We have had the benefit of Ian’s depth of experience in the global mining sector and his strong business acumen.”
Telstra Corporation Ltd (TLS):
Telstra has issued EUR 600 million ($958m) in ten-year bonds under its debt issuance program offering, the proceeds of which will be used for general corporate purposes. The notes have a coupon of 1.375 per cent and mature on March 26, 2029.
TPG Telecom Ltd (TPM):
TPG Telecom has warned that it will have to stop selling its entry-level NBN plan unless wholesale prices are not reduced after posting a 76 per cent drop in net profit for the first half of fiscal 2019. “NBN continues to be a challenging environment, cost on the NBN 12 (plan) has seen the CVC cost increase substantially from $12.75 to $17.50 for per megabits per second,” the telco’s chief operating officer Craig Levy said on Tuesday. “Should NBN continue its approach without any regulatory intervention we will have to stop offering our $60 product because the costs have increased to a point where it’s difficult for us to keep selling it.” The viability of current NBN wholesale prices is shaping up as a major issue in dictating the future of the $50 billion National Broadband Network, with telcos agitating for price cuts. TPG’s latest warning comes on the back of ongoing calls by Telstra boss Andrew Penn that high wholesale prices needed to be brought down. TPM shares last down 0.22pc at $6.83.
Westpac Banking Corp (WBC):
Westpac is quitting the financial advice segment and overhauling its management structure in a change that will result in two of its most senior executives leaving the bank. The bank's BT Financial Group will be rolled into Westpac's consumer banking division, with current consumer bank chief George Frazis and BT chief Brad Cooper set to leave the company. Following a review of its challenged advice business, Westpac on Tuesday said it would no longer provide advice to customers through its salaried planners working for BT Financial Group, or through authorised representatives it owns. The bank will sell the business to Viridian, which is set to offer employment to about 175 BT salaried advisers, and other management and support staff. "We are committed to supporting our customers' insurance, investment and superannuation needs as part of our service strategy. The changes we're announcing today are about focusing our investment where we have genuine competitive advantage and growth opportunities," chief executive Brian Hartzer said.
WiseTech Global Ltd (WTC):
Global logistics group WiseTech Global as announced a $250 million capital raise to institutional investors in a bid to pursue its growth strategy. It said the proceeds would be used to strengthen its balance sheet and increase its capacity through innovation and the acquisition of strategically valuable assets. The raise is fully underwritten by lead managers Goldman Sachs and Morgan Stanely - who are conducting a variable price bookbuild, likely between $20.30 and $21.50 per share. “We will continue to execute on smaller, but important, European economies and key remaining markets in Asia. Once complete, we will have secured the leading global position in customs clearance and border compliance,” founder and chief Richard White said. Reports the Australian
Xenith IP Group Ltd (XIP):
Xenith IP Group's board is rejecting IPH's hostile take-over offer, saying it is not a superior proposal because Xenith shareholders lose control of the merged entity. It wants to proceed with its own merger plans, with regulatory clearance due on Thursday. Under the proposed merger with QANTM, Xenith shareholders retail 45 per cent of the merged entity and get half the board seats. But under the IPH offer, it gets full control and Xenith shareholders retain less than 5 per cent. The IPH offer does not include a "control premium normally associated with outright control". Xenith is also concerned the IPH offer will not get competition clearance. And it might not be supported by Xenith employees, who hold 40 per cent of Xenith shares.
(Source: AIMS)
The world’s largest asset manager BlackRock has acquired a 12.5 per cent stake in the $1.93 billion fund manager Perpetual, prompting questions as to whether it is a takeover target. However, market sources say the acquisition was likely to do with a move to buy shares for one of its exchange traded funds and played down the likelihood of a takeover. It comes after Perpetual’s share price last week rallied more than 12 per cent in one trading session, prompting a ‘please explain’ from the Australian Securities Exchange to which it said it knew of no reason for the share price rally. BlackRock is the world’s largest asset manager, based in New York and currently has US$5.98 trillion in assets under management. In a notice to the ASX today, it was revealed that the company had amassed about 12.5 per cent in Perpetual. It operates with 70 offices in 30 countries and some question whether the group could be eager to lift its exposure to the Australian market.
Caltex Australia Ltd (CTX):
Caltex has trimmed forcasts for its convenience retail division, citing a softening in retail fuel margins thanks to the rebound in the crude oil price and competitor activity. In a first quarter update, it said total fuel and shop margins for the quarter were between $160 million and $170m, $35m to $45m less than the same quarter last year. The petrol station operator said it was largely the fuel margin driving the falls, with the shop margin in line with the previous quarter. “While Q1 looks challenging, Caltex notes that short term trading conditions are not necessarily a reliable indicator of the full year result. External drivers such as movements in underlying crude and product prices, and changes in competitor pricing strategies can result in material variances between periods,” it said.
McMillan Shakespeare Ltd (MMS):
McMillan Shakespeare shareholders are believed to have expressed concern about its plans to merge with Eclipx and are quietly hoping, behind the scenes, that the company will recut the terms of its merger with Eclipx or walk away from the deal completely. It comes as Eclipx remained in a trading halt yesterday ahead of the release of a trading update and McMillan Shakespeare says it will review its position following that update’s release. The expectation is it will abandon the transaction or recut the terms. While some say it is almost impossible for McMillan Shakespeare to break its deal to join forces with Eclipx, others say it is not impossible for the group to back out of the arrangement and believe the company’s share price will rally by more than 10 per cent as a result. The thinking among some is that McMillan Shakespeare’s recent half-year earnings result, where it posted a slightly lower interim net profit of $50.8 million, proved the company was not a poor performer. Eclipx, on the other hand, has announced two recent profit downgrades, causing shares to fall even further than they did in January to $1.885, valuing the business now at $602.5m compared to almost $850m in January.
New Hope Corporation Ltd (NHC):
New Hope Group has posted record results for the half year, thanks in most part to its increased stake in the Bengall coal mine. The Company delivered net profit after tax of $159.8 million, 33 per cent higher than the $120.3m recorded in the same period last year. “Increased production at Bengalla saw the mine deliver a Net Profit Before Tax of $126.6 million for the period. Queensland mining operations contributed a Net Profit Before Tax of $110.9 million and ensured a record first half result for the Company,” managing directoro Shane Stephan said. The company recently took an additional 30 per cent stake in Bengalla, to take its ownership to 70pc. “Our focus for the future remains on safe and efficient production at existing operations, enabling commencement of mining operations at the Lenton Joint Venture Burton Mine and extending the life of operations at New Acland.” Mr Stephan said.
Orica Ltd (ORI):
Orica director Ian Cockeril will step down from the company’s board after 9 years of service. In a note to the market this morning, Orica said the move was in accordance with its normal board succession practices, and that it was “well advanced” in finding a replacement. “Ian has served the shareholders of Orica as a Non-executive Director for almost 9 years and has made a significant contribution to the Board’s oversight of the business,” chair Malcolm Broomhead said. “We have had the benefit of Ian’s depth of experience in the global mining sector and his strong business acumen.”
Telstra Corporation Ltd (TLS):
Telstra has issued EUR 600 million ($958m) in ten-year bonds under its debt issuance program offering, the proceeds of which will be used for general corporate purposes. The notes have a coupon of 1.375 per cent and mature on March 26, 2029.
TPG Telecom Ltd (TPM):
TPG Telecom has warned that it will have to stop selling its entry-level NBN plan unless wholesale prices are not reduced after posting a 76 per cent drop in net profit for the first half of fiscal 2019. “NBN continues to be a challenging environment, cost on the NBN 12 (plan) has seen the CVC cost increase substantially from $12.75 to $17.50 for per megabits per second,” the telco’s chief operating officer Craig Levy said on Tuesday. “Should NBN continue its approach without any regulatory intervention we will have to stop offering our $60 product because the costs have increased to a point where it’s difficult for us to keep selling it.” The viability of current NBN wholesale prices is shaping up as a major issue in dictating the future of the $50 billion National Broadband Network, with telcos agitating for price cuts. TPG’s latest warning comes on the back of ongoing calls by Telstra boss Andrew Penn that high wholesale prices needed to be brought down. TPM shares last down 0.22pc at $6.83.
Westpac Banking Corp (WBC):
Westpac is quitting the financial advice segment and overhauling its management structure in a change that will result in two of its most senior executives leaving the bank. The bank's BT Financial Group will be rolled into Westpac's consumer banking division, with current consumer bank chief George Frazis and BT chief Brad Cooper set to leave the company. Following a review of its challenged advice business, Westpac on Tuesday said it would no longer provide advice to customers through its salaried planners working for BT Financial Group, or through authorised representatives it owns. The bank will sell the business to Viridian, which is set to offer employment to about 175 BT salaried advisers, and other management and support staff. "We are committed to supporting our customers' insurance, investment and superannuation needs as part of our service strategy. The changes we're announcing today are about focusing our investment where we have genuine competitive advantage and growth opportunities," chief executive Brian Hartzer said.
WiseTech Global Ltd (WTC):
Global logistics group WiseTech Global as announced a $250 million capital raise to institutional investors in a bid to pursue its growth strategy. It said the proceeds would be used to strengthen its balance sheet and increase its capacity through innovation and the acquisition of strategically valuable assets. The raise is fully underwritten by lead managers Goldman Sachs and Morgan Stanely - who are conducting a variable price bookbuild, likely between $20.30 and $21.50 per share. “We will continue to execute on smaller, but important, European economies and key remaining markets in Asia. Once complete, we will have secured the leading global position in customs clearance and border compliance,” founder and chief Richard White said. Reports the Australian
Xenith IP Group Ltd (XIP):
Xenith IP Group's board is rejecting IPH's hostile take-over offer, saying it is not a superior proposal because Xenith shareholders lose control of the merged entity. It wants to proceed with its own merger plans, with regulatory clearance due on Thursday. Under the proposed merger with QANTM, Xenith shareholders retail 45 per cent of the merged entity and get half the board seats. But under the IPH offer, it gets full control and Xenith shareholders retain less than 5 per cent. The IPH offer does not include a "control premium normally associated with outright control". Xenith is also concerned the IPH offer will not get competition clearance. And it might not be supported by Xenith employees, who hold 40 per cent of Xenith shares.
(Source: AIMS)
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