Acceptances from Automotive Holdings Group shareholders have bolstered suitor AP Eagers’ interests in the company to 38 per cent, despite the target company warning against the takeover. In a notice to the market this morning, Eagers said its holdings in the company had increased by 10 per cent, from its initial substantial holding of 28pc, thanks to acceptances recieved under the Institutional Acceptance Facility. Those votes are despite AHG’s recommendation that shareholders “take no action”, reaffirmed on Wednesday. Directors of the company said the $2 billion deal was of “no benefit” to shareholders and was below market value.
Graincorp Ltd (GNC):
GrainCorp board member Mark Palmquist has resigned from his position, as he moves to head the company’s demerged MaltCo arm. Earlier this month, the grain producer said it was spinning off its malt business as a seperate listed entity in a bid to pursue independent operating strategies and capital structures. Mr Palmquist will remain chief of GrainCorp until completion of the demerger.
IOOF Holdings Limited (IFL):
Troubled financial services group IOOF has breached license conditions by failing to meet a deadline set up a special office to oversee its role as a superannuation trustee, the prudential regulator says. The company’s failure to comply with the Australian Prudential Regulation Authority’s demands casts further doubt on the transfer to it of 700,000 super clients from ANZ’s OnePath business to IOOF - a deal that was already under a cloud following IOOF’s disastrous appearance at the financial services royal commission last year and regulatory action against key company executives. APRA slapped new license conditions on IOOF’s trustee companies in December as part of a package of action against that company that included legal action to ban key IOOF executives including then-managing director Chris Kelaher and then-chairman George Venardos from the super industry. APRA required IOOF to set up a “dedicated business function” to support its superannuation trustee companies by March 31.
Lynas Corporation Ltd (LYC):
A Malaysian government deputy minister has accused rare earths group Lynas Corp of being "big bullies" and warned it has to send its low level radioactive waste back to Australia by September or lose its licence. Fuziah Salleh, the MP for the city on Malaysia's east coast which is home to Lynas Corp's $1 billion rare earths processing operations, also said the government was happy to work with conglomerate Wesfarmers, which wants to buy Lynas, if it agreed to send the company's waste back to Australia. While Ms Salleh is not a member of Cabinet, which has yet to clarify its position on the Lynas plant, she said she had received assurances on the matter from Prime Minister Mahathir Mohamad. "I am very confident on his position. He agreed with me it would be sent back. That was his commitment to me," Ms Salleh told The Australian Financial Review on Thursday.
National Australia Bank Ltd (NAB):
Outgoing Royal Bank of Scotland chief executive Ross McEwan said he has not made any decision on what he plans to do next, amid speculation he could be targeted by National Australia Bank. Speaking in Edinburgh overnight, Mr McEwan would not rule out another executive role, but said he had “no thoughts” his next step. The odds have shortened on Mr McEwan as the next chief executive of National Australia Bank after his surprise resignation yesterday from Royal Bank of Scotland. When asked about what he plans to do next Mr McEwan said: “My wife and I have nothing planned whatsoever and we find that quite exciting”.
Woolworths Group Ltd (WOW):
Woolworths' $1.7 billion off-market share buyback is expected to be heavily oversubscribed by retirees and superannuation funds chasing franking credits before mooted changes to the law come into force. The buyback, funded from proceeds from the sale of Woolworths' fuel business, will be based on a tender, with investors bidding to sell shares at a discount of between 10 per cent and 14 per cent below the volume weighted average price over the five days before the May 24 closing date.
Flight Centre Travel Group Ltd (FLT) :
Flight Centre has slashed its underlying profit guidance for 2019 by more than 14 per cent due to subdued trading in its Australian business during the key holiday booking months of May and June. The profit downgrade came as workers filed a federal court claim against the company alleging the company had systematically underpaid its staff. Flight Centre on Wednesday said the subdued trading conditions had coincided with a period of "significant disruption" for the company including introducing a new wage model for it front-end sales staff, an ongoing review of its shop network and putting in new sales systems. Flight Centre managing director Graham "Skroo" Turner said the overall results would be disappointing.
(Source: AIMS)
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