Buy now pay later favourite Afterpay has signed a $US300 million ($429m) receivable funding facility with Citi to support the expansion of its US business. The new 24-month facility will provide the US business with access to external funding to support in excess of $US4bn in annual underlying US sales. Afterpay already has $500m in local receivables funding and a $NZ20m facility.
Amcor Limited (AMC):
Shareholders in mega-merger targets Amcor and Bemis have overwhelmingly voted in favour of a tie up between the two, paving a way for the final steps of the transaction. In two seperate meetings, one in Sydney and one in the US, investors voted for the scheme to go ahead by more than 90 per cent. Last month, Amcor sold of a number of its US assets to achieve US antitrust clearance, leaving few minor hurdles before the deal is complete - expected on May 15.
Aurizon Holdings Ltd (AZJ):
Railway operator Aurizon has struck a deal with some of Queenslands biggest coal miners after long-running negotiations over Central Queensland rail access. The company has been fighting with the regulator over how much money it can charge customers, which represent 90 per cent of railed tonnes in the CQ coal network, to use its rail tracks. In a notice to the market today, Aurizon said it had extended the term of the Access Undertaking to ten years and increased the weighted average cost of capital to 6.3 per cent from 5.9pc. It said miners including Anglo American, BHP, Coronado, Glencore, QCoal and Yancoal would be submitting letters of support to the regulator. “Today’s announcement is an important step in the development of an Undertaking that better addresses customer needs and provides longer term certainty for the Queensland resources sector,” chief Andrew Harding said.
GBST Holdings Limited (GBT):
Financial services tech GBST has told shareholders it is wary of a takeover proposal from rival Bravura, and warned them not to take any action on the bid as yet. In their first commentary on the $170 million deal, GBST said it was conducting a “careful assessment” of the proposal and weighing up warnings from some of its shareholders. “A number of shareholders have expressed concerns with respect to aspects of the Indicative Proposal which go to value and certainty, including Bravura’s request to conduct due diligence to its satisfaction, particularly in light of the fact that it is a direct competitor of GBST,” it said. It said it was engaging with Bravura to further understand its position but that shareholders should hold out before accepting the $2.50 per share bid.
Macquarie Group Ltd (MQG):
Macquarie Group has warned of a tougher 2020 after delivering another record full-year profit just shy of $3 billion, buoyed by asset management fees. The results, released to the ASX today, also revealed that long-standing head of Macquarie’s global investment bank Tim Bishop will step down from the role at the month’s end to become chairman of the division. He will be replaced by Daniel Wong who jointly heads up the global infrastructure and energy group. The asset manager and investment bank’s annual profit climbed 17 per cent to $2.98 billion for the 12 months ended March 31, the ASX statement said. Macquarie’s guidance – which was ratcheted up through the period - pointed to an annual profit result up to 15 per cent higher than 2018’s $2.56. billion. Analysts were expecting a full-year profit of $2.97 billion. Macquarie’s chief executive Shemara Wikramanayake, who took the top job in December, cautioned that earnings in 2020 were expected “to be down given material transactions in full year 2019”. “Macquarie remains well positioned to deliver superior performance in the medium term,” she said.
MotorCycle Holdings Ltd (MTO):
Motorcycle Holdings has warned of a contracting new motorcycle market as it sets out its earnings guidance for the full year. In an update to the market this morning, the group said it expects to report earnings of $16.5 million to $17.5m for the full year, down from $19.8 million in the year prior and amid $10.4m reported in the first half. Chief David Ahmet said the company had been hit by a 14.6 per cent contraction in the new motorcycle market in the first quarter, what had aversely impacted the company’s performance. “A program to lower the business’ cost structure, reduce debt and improve operational performance across all divisions to meet these continuing tough trading conditions is currently being implemented,” the company said.
National Australia Bank Ltd (NAB):
ANZ is expecting the Reserve Bank of Australia to cut the cash rate by 25 basis points when it next meets on Tuesday, despite the market still favouring a cut in June. "We think the RBA will see the need for additional stimulus in order to lift inflation to 2 per by the later part of the forecast horizon and consequently expect the cash rate to be cut by 25 basis points on Tuesday," said ANZ head of Australian economics David Plank. ANZ joins the list of forecasters expecting a cut on Tuesday, along with Capital Economics, Nomura, Macquarie, TD Securities, Market Economics, RBC Capital Markets, JP Morgan, QIC, Citi, Morgans, ING and AMP Capital. "We have pencilled in the RBA cutting the official cash rate by 0.25 percentage points on Tuesday taking it to 1.25 per cent which will be a new record low and the first move since August 2016," said AMP Capital chief economist Shane Oliver. "However, while we remain confident that rates will be cut to 1 per cent by year end, it's a very close call as to whether the Bank goes Tuesday or waits till after the election."
Noni B Limited (NBL):
Womenswear retailer Noni B Group has announced the appointment of former Marie Claire editor Jacqueline A Frank as a nonexecutive director with immediate effect. The inaugural editor of Australian Marie Claire magazine, Ms Frank was general manager of Pacific Magazines overseeing the fashion, beauty, health and custom sections for one of the country’s largest publishing divisions. “We’re very pleased and fortunate to welcome Jackie to the board of Noni B,” chairman Richard Facioni said in a statement to the market. “Her knowledge and experience, particularly her understanding of our customer, will be invaluable as we continue to grow Noni B to becoming one of the pre-eminent women’s apparel retailers in Australia.”
RESMED (RMD):
Local shares in ResMed are the best performer early, after announcing a 15 per cent jump in profits and success of its software offerings. The company said its revenue had jumped by 12 per cent, and gross margins by 100 basis points, with software as a service revenue a standout, up 101 per cent. Shares in the company jumped by 8.7 per cent early, last up 6.55 per cent to $15.77 on the local bourse, while its NYSE-listed stock is up by 4 per cent in after hours trade.
Superloop Ltd (SLC):
Superloop has confirmed speculation of a takeover bid, this morning sharing detail of a $1.95 per share offer from QIC, valuing the company at $493 million. In a notice to the market, the telco infrastructure group said an initial $1.90 per share bid had been lobbed on April 2, and raised to $1.95 per share last week with consideration to be paid in full cash or partial cash and scrip in a newly formed, unlisted entity. It comes after The Australian’s DataRoom this morning speculated on takeover interest in the group. The company have granted QIC a three week exclusive due dilligence period to “establish whether an acceptable binding transaction can be agreed”. Superloop has appointed Merill Lynch Markets as its financial adviser and Gilbert and Tobin as its legal adviser.
（Source: AIMS）
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