Aeris Resources Ltd (AIS):
Aeris Resources has made a $US575 million ($810m) offer for Glencore’s underground mine in eastern Australia, an outsized bid that could crucially lift the small copper miner’s annual production. Aeris said late-stage negotiations over the offer and associated documents were ongoing but yet to be finalised and funding was not yet in place. Aeris, which has a market value of about $77.5m, said its offering to the bigger resources company included $US575m in cash and about $50m in shares. It expects the deal to be part funded via a combination of debt of up to $US300m and an equity raising of as much as $US240m. A Glencore spokesman said he could not comment for now. The offer wasn’t guaranteed to proceed and if it does, would likely be subject to a number of conditions, Aeris said.
BHP Group Ltd (BHP):
The renewal of the BHP board under chairman Ken MacKenzie has continued, with a former coal industry boss and a former investment banker set to become directors. Ian Cockerill, who previously the chief executive of both Anglo Coal and Gold Fields, will join the board effective on April 1. The experienced British director, who also sits on Orica's board, will be joined at BHP by former Credit Suisse banker Susan Kilsby, who also holds board roles at beverages giant Diageo and Fortune Brands Home & Security. Their appointments will take the number of non-executive directors on the BHP to 10, with chief executive Andrew Mackenzie the only executive director.
Brickworks Limited (BKW):
Australian building materials supplier Brickworks said it is actively pursuing acquisitions in the US, as it seeks to reduce a reliance on Australia for earnings after being squeezed by rising energy costs and a slowdown in construction activity. Managing Director Lindsay Partridge said the company’s Australian building products division is facing short-term headwinds, with higher energy prices expected to add around $12 million to costs over the full year. Ahead of a state election in New South Wales this weekend and a federal ballot before the end of May, Brickworks urged lawmakers to tread lightly on policy or risk damaging the future of Australian manufacturing.
Eclipse Metals Ltd (EPM):
Fleet management and online auctions group Eclipx is preparing to slim down with two potential asset sales after suitor McMillan Shakespeare pulled the plug on a proposed $1.6 billion merger. Eclipx warned that its financial performance had deteriorated markedly in February and it is now exploring the sale of Grays and Right2Drive. Eclipx shares crashed on Wednesday, sliding by 56 per cent to 83¢ as it resumed trading after a two-day halt. The plunge wiped $337 million off the company's market value. The GraysOnline and Right2Drive businesses have also hit problems in a weaker economy, with Eclipx now seeking to reverse an acquisition strategy after both of those entities came into the stable in the past three years.
Fortescue Metals Group Limited (FMG):
Fortescue Metals Group has emerged as an unlikely rival to Google and Tesla, with the iron ore miner launching a new research centre into self-driving cars. Fortescue announced this morning it would establish a research and development centre in the Pilbara iron ore town of Karratha “to explore opportunities for the application of autonomous mobility technology in an urban environment”. The centre will leverage off Fortescue’s growing expertise in autonomous vehicles, which are already used extensively across its Pilbara iron ore operations. The miner already has more than 100 self-driving trucks at its mines and is in the process of moving to a fully autonomous fleet.
Myer Holdings Ltd (MYR):
Myer has slashed 50 jobs as its recently appointed Myer chief executive John King moves on plans to transform the troubled department store chain. Among those to go is marketing general manager Andrew Egan, who led the launch of Myer’s ‘My Store’ campaign as well as recent Christmas and Myer Sale campaigns. Department stores are reeling globally from sliding sales as shoppers continue to migrate to online retailers like Amazon, and remain at the mercy of shopping centre landlords with long term leases that are difficult to break. It is understood that redundancies have been made in Myer’s marketing, merchandise departments at head office and across its store network, involving administrative and management roles.
Sigma Healthcare Ltd (SIG):
Sigma Healthcare has posted a near 34 per cent slide in reported full-year net profit because of restructuring, litigation and due diligence costs associated with the recently rejected takeover offer. Revenue fell 2.9 per cent to $3.98 billion in the year ended January 31, reflecting the $226 million – or a 50 per cent decline in sales – of the low-margin hepatitis C medicines. Reported earnings before interest, tax, depreciation and amortisation was down 17.5 per cent to $76.5 million, while underlying earnings was 9.2 per cent lower at $90.5 million on last year. Underlying net profit after tax reached $46.3 million, compared with $59.9 million a year ago. Sigma boss Mark Hooper flagged the closures of its Shepparton, Newcastle and Launceston distribution centres in the second half of the 2019 calendar year.
TPG Telecom Ltd (TPM):
The Australian Competition and Consumer Commission will hand down its final decision on the proposed merger between TPG Telecom and Vodafone Hutchison Australia on May 9, after months of delays. The hotly-anticipated $15 billion merger would create the nation's third biggest telco, with extensive fixed line and mobile infrastructure and the potential to build a 5G network to rival those planned by Telstra and Optus. The ACCC originally set the decision date as March 29, but later pushed it back to April, then May.
Worleyparsons Limited (WOR):
WorleyParsons has tipped completion of its mega-merger with Jacobs Engineering Group for the end of April after receiving all regulatory approval this month. The $4.6 billion acquisition, the largest outbound cross-border M&A deal in at least a year, will see Worley purchase the energy, chemicals and resources (ECR) business based in Dallas. In a note to the market today, Worley said it had received approval from the Committee on Foreign Investment in the US, as well as from the US HSR antitrust, European Commission and competition bureaus in both Canada and South Africa. WOR last up 1.8pc at $14.74.
(Source: AIMS)
Aeris Resources has made a $US575 million ($810m) offer for Glencore’s underground mine in eastern Australia, an outsized bid that could crucially lift the small copper miner’s annual production. Aeris said late-stage negotiations over the offer and associated documents were ongoing but yet to be finalised and funding was not yet in place. Aeris, which has a market value of about $77.5m, said its offering to the bigger resources company included $US575m in cash and about $50m in shares. It expects the deal to be part funded via a combination of debt of up to $US300m and an equity raising of as much as $US240m. A Glencore spokesman said he could not comment for now. The offer wasn’t guaranteed to proceed and if it does, would likely be subject to a number of conditions, Aeris said.
BHP Group Ltd (BHP):
The renewal of the BHP board under chairman Ken MacKenzie has continued, with a former coal industry boss and a former investment banker set to become directors. Ian Cockerill, who previously the chief executive of both Anglo Coal and Gold Fields, will join the board effective on April 1. The experienced British director, who also sits on Orica's board, will be joined at BHP by former Credit Suisse banker Susan Kilsby, who also holds board roles at beverages giant Diageo and Fortune Brands Home & Security. Their appointments will take the number of non-executive directors on the BHP to 10, with chief executive Andrew Mackenzie the only executive director.
Brickworks Limited (BKW):
Australian building materials supplier Brickworks said it is actively pursuing acquisitions in the US, as it seeks to reduce a reliance on Australia for earnings after being squeezed by rising energy costs and a slowdown in construction activity. Managing Director Lindsay Partridge said the company’s Australian building products division is facing short-term headwinds, with higher energy prices expected to add around $12 million to costs over the full year. Ahead of a state election in New South Wales this weekend and a federal ballot before the end of May, Brickworks urged lawmakers to tread lightly on policy or risk damaging the future of Australian manufacturing.
Eclipse Metals Ltd (EPM):
Fleet management and online auctions group Eclipx is preparing to slim down with two potential asset sales after suitor McMillan Shakespeare pulled the plug on a proposed $1.6 billion merger. Eclipx warned that its financial performance had deteriorated markedly in February and it is now exploring the sale of Grays and Right2Drive. Eclipx shares crashed on Wednesday, sliding by 56 per cent to 83¢ as it resumed trading after a two-day halt. The plunge wiped $337 million off the company's market value. The GraysOnline and Right2Drive businesses have also hit problems in a weaker economy, with Eclipx now seeking to reverse an acquisition strategy after both of those entities came into the stable in the past three years.
Fortescue Metals Group Limited (FMG):
Fortescue Metals Group has emerged as an unlikely rival to Google and Tesla, with the iron ore miner launching a new research centre into self-driving cars. Fortescue announced this morning it would establish a research and development centre in the Pilbara iron ore town of Karratha “to explore opportunities for the application of autonomous mobility technology in an urban environment”. The centre will leverage off Fortescue’s growing expertise in autonomous vehicles, which are already used extensively across its Pilbara iron ore operations. The miner already has more than 100 self-driving trucks at its mines and is in the process of moving to a fully autonomous fleet.
Myer Holdings Ltd (MYR):
Myer has slashed 50 jobs as its recently appointed Myer chief executive John King moves on plans to transform the troubled department store chain. Among those to go is marketing general manager Andrew Egan, who led the launch of Myer’s ‘My Store’ campaign as well as recent Christmas and Myer Sale campaigns. Department stores are reeling globally from sliding sales as shoppers continue to migrate to online retailers like Amazon, and remain at the mercy of shopping centre landlords with long term leases that are difficult to break. It is understood that redundancies have been made in Myer’s marketing, merchandise departments at head office and across its store network, involving administrative and management roles.
Sigma Healthcare Ltd (SIG):
Sigma Healthcare has posted a near 34 per cent slide in reported full-year net profit because of restructuring, litigation and due diligence costs associated with the recently rejected takeover offer. Revenue fell 2.9 per cent to $3.98 billion in the year ended January 31, reflecting the $226 million – or a 50 per cent decline in sales – of the low-margin hepatitis C medicines. Reported earnings before interest, tax, depreciation and amortisation was down 17.5 per cent to $76.5 million, while underlying earnings was 9.2 per cent lower at $90.5 million on last year. Underlying net profit after tax reached $46.3 million, compared with $59.9 million a year ago. Sigma boss Mark Hooper flagged the closures of its Shepparton, Newcastle and Launceston distribution centres in the second half of the 2019 calendar year.
TPG Telecom Ltd (TPM):
The Australian Competition and Consumer Commission will hand down its final decision on the proposed merger between TPG Telecom and Vodafone Hutchison Australia on May 9, after months of delays. The hotly-anticipated $15 billion merger would create the nation's third biggest telco, with extensive fixed line and mobile infrastructure and the potential to build a 5G network to rival those planned by Telstra and Optus. The ACCC originally set the decision date as March 29, but later pushed it back to April, then May.
Worleyparsons Limited (WOR):
WorleyParsons has tipped completion of its mega-merger with Jacobs Engineering Group for the end of April after receiving all regulatory approval this month. The $4.6 billion acquisition, the largest outbound cross-border M&A deal in at least a year, will see Worley purchase the energy, chemicals and resources (ECR) business based in Dallas. In a note to the market today, Worley said it had received approval from the Committee on Foreign Investment in the US, as well as from the US HSR antitrust, European Commission and competition bureaus in both Canada and South Africa. WOR last up 1.8pc at $14.74.
(Source: AIMS)
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