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AUSTRALIA MARKETS(2019-03-25)

Australia Channel
2019-03-25 14:55

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Australia and New Zealand Banking Group (ANZ):
ANZ has completed its $3 billion on-market buy-back, purchasing 108.7 million shares since January last year. In a note to the market this morning, the bank said it had reduced its ordinary shares on issue by 3.7 per cent and flagged more capital returns ahead pending its life insurance sale to Zurich. “Capital efficiency and a strong balance sheet have been key areas of focus in recent years. Since 2016 we have built the Group’s CET1 from 9.4 per cent to 11.3pc and have been the only major bank to reduce shares on issue,” chief financial officer Michelle Jablko said. “Once the funds are received from the Life Insurance sale, any further capital management will take into account several factors including actual and potential regulatory capital requirements as well as ongoing business needs.” It said its capital ratio was 11.3pc, well in excess of APRA’s stated requirement of 10.5pc.
 
Corporate Travel Management Ltd (CTD):
Corporate Travel Management has announced the retirement of chair Tony Bellas, just days after the company responded to queries from the ASX about a 82 per cent transfer of shares. In a note today, CTM announced Ewen Crouch AM as his replacement, a current director of Westpac and BlueScope. Mr Bellas steps down after 10 years in the role, including its listing in December 2010. “Tony Bellas has made an exceptional contribution to the success of CTM and we thank him for his leadership, guidance and the commitment he has given to the company,” managing director and founder Jamie Pherous said. On Monday, the company responded to queries from the ASX about a late lodging of a $4.5 million change in Mr Bella’s interests in the company, what he said he was not aware of. CTD shares up 0.08pc at $25.31
 
National Australia Bank Ltd (NAB):
Self-managed super fund members will next week face a new setback when NAB announces tough new controls on business property lending, despite offices, factories and surgeries being one of the sector's most popular investments. The $726 billion SMSF sector is facing several challenges amid proposals to reform use of franking credits, restrict lending and impose minimum amounts for assets under management. Small business are complaining about a new credit crunch as lenders clamp down following the Hayne banking commission that is impacting their ability to employ, expand and invest. Lenders are also intensifying scrutiny of property investments as property prices continue to slide and small businesses, particularly in retail and building, are under growing financial pressure. From next Friday, NAB SMSF business borrowers will require a loan of $1.5 million or more for each transaction; have a minimum of $5 million in total assets in the fund; and have an 'existing relationship' with the bank for at least two years.
 
Navitas Limited (NVT):
Ben Gray’s BGH Capital looks set to finally secure its long-awaited first deal after its protracted stalking of education provider Navitas ended in an agreed and binding $2.1 billion takeover offer. Navitas on Thursday formally entered into a scheme implementation deed with the consortium led by BGH after months of wrangling between the two camps. Should Navitas shareholders approve the deal, which has been unanimously recommended by the Navitas board, shareholders will receive $5.85 a share for their holdings. Investors are set to vote on the offer in June. The scheme between BGH and Navitas also features a break fee of $15.65 million payable if -either side walks away. The consortium also has the right to match any superior offer received by Navitas, although the lack of alternative bidders flushed out over the course of the months-long tussle for the company — as well as “no-shop, no-talk” provisions in the agreement — suggests such a development is unlikely. The looking deal will also mark a return to the business for Mr Jones, who recognised the -opportunity to create a private education provider when regulations changed to open up Australia to full fee-paying international students in the 1980s.
 
Premier Investments Limited (PMV):
Solomon Lew’s Premier Investments has posted record first half profit of $88.8 million, boasting strength in its Smiggle and Peter Alexander chains amid a retail slow down. The company posted net profit of $88.8 million, up 13 per cent on the same period last year and declared a 33 cent per share dividend, up 13.8pc on the previous. “Premier’s outstanding performance for the period was driven by strong growth in all our apparel brands, record sales across our online divisions, record Smiggle global sales and record Peter Alexander sales,” chair Mr Lew said. The company said it was launching its stationery brand Smiggle into the Canadian market through an “iconic retailer” later this year in three major cities, its first move into the North American market.
 
St Barbara Ltd (SBM):
Gold miner St Barbara has lowered production guidance at its Gwalia project after pushing back the start of its circuit operations to the fourth quarter from Q2 on changes to its mining and haulage methods. In a feasibility study into the best haulage methods, it found the case for continuing trucking was preferred based on risk and return-on-capital assessments. But it said production for the FY19 was now anticipated to be between 235,000 and 240,000 ounces, down from 245,000 to 255,000 previously at an AISC of between $980 to $1000 per ounce from previous estimates of between $930m and $970m. St Barbara shares are down 22.15 per cent to $3.62 on the news. Meanwhile, it said output at its Simberi project was increased to between 130,00 to 135,00 ounces from 120,000 to 130,000. SBM last down 24.3pc at $3.52.
 
Suncorp Group Ltd (SUN):
Suncorp is set to pay an 8 cent special dividend to investors following the sale of its Australian Life Business to Japanese giant TAL Dai-ichi Life. The dividend represents just a $100 million portion of the $600 million in capital to be returned to shareholders following the sale. “The preferred means of distributing the balance of the capital generated from the sale (expected to be around $500 million) continues to be through seeking shareholder approval for a pro-rata return of share capital and share consolidation, which remains subject to shareholder approval,” it said.
(Source: AIMS)
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