Air New Zealand says it has committed to buy eight Boeing 787-10 Dreamliner aircraft. At current list prices, the order has a value of $US2.7 billion ($3.9bn), though Air New Zealand said it had negotiated a significant discount and the companies had agreed not to disclose the actual price. The order, which has an option to increase the number of aircraft to as many as 20 and has substitution rights that would allow a switch from the larger 787-10 aircraft to smaller 787-9s, will replace a current fleet of eight Boeing 777-200 aircraft that will be phased out by 2025. The first of the new jets will join the airline in 2022, adding to a current fleet of 13 787-9 Dreamliners.
Bingo Industries Ltd (BIN):
Shares in waste removal company Bingo Industries are up 70 per cent since February, when the stock crashed from $2.30 to $1.17 after it issued a profit warning due to faster than expected slow down in apartment construction on 18 February. Since then it announced plans for a $75 million share buy-back and to buy Dial A Dump Industries. And US investment firm Capital Group has taken a 5.2 per cent position last week with the purchase of 34.5 million shares for an average of $1.88.
BlueScope Steel Limited (BSL):
UBS analysts led by James Brennan-Chong downgraded their rating on BlueScope Steel on Friday from 'buy' to 'neutral' with a price target of $13, down from $16. Shares are trading at a 4-month low of $11.42 today, but were as high as $14.88 in April "We downgrade our rating on BlueScope to Neutral, from Buy, as we see the business facing pressures from 1) the removal of Canadian and Mexican steel tariffs; 2) high iron ore prices and 3) softening demand for detached houses in Australia," he wrote in a note to clients. "In our view, despite weakening US spreads we think BlueScope Steel will still push ahead with the North Star expansion as it is the right strategy long term given its low cost base."
Cochlear Limited (COH):
Australian-listed biotech Cochlear’s key growth channel continues to be adults but Macquarie warns some near-term hurdles remain in that category. The investment bank’s team surveyed 21 US-based audiologists with a specialisation in cochlear implants and released a report to clients on their findings. The analysts highlighted that increased uptake of cochlear implants amongst adults remained the key opportunity for Cochlear but that diagnosis/awareness remained near-term hurdles. Macquarie’s team said participants highlighted wireless connectivity and processor size/aesthetics as the most important characteristics for adult patients, with MRI compatibility and durability key considerations for paediatric patients. “Overall, Cochlear was highlighted as best meeting key criteria,” the analysts said.
Fisher & Paykel Healthcare Corp Ltd (FPH):
Fisher & Paykel Healthcare has lifted full-year profit 10 per cent to a record $NZ209.02 million ($197.74m) thanks to growth across its respiratory and home care products. The dual-listed health equipment provider lifted revenue 9.0 per cent to $NZ1.07 billion for the 12 months to March 31 as sales across its hospital group — which includes products used in respiratory, acute and surgical care — grew 11 per cent to a record $NZ642.3m. Fisher and Paykel said on Monday an estimated three million patients were treated with its Optiflow respiratory products during the year and it lifted its final dividend one cent to 13.5 NZ cents per share.
Freedom Foods Group Ltd (FNP):
Freedom Foods has completed the institutional component of the $130 million equity raising it announced last week. The company told the market today that the institutional portion of the raising had raised about $119.3m at an offer price of $4.80. Rory Macleod, chief executive of Freedom, said the placement was significantly oversubscribed, with strong demand from a broad range of high quality institutional investors. “The institutional entitlement offer was also well supported by existing institutional shareholders with a take-up of approximately 92 per cent,” he said. The $11.2m balance of the $130m equity raising comprises the retail component of the entitlement offer, which opens on Wednesday.
GPT Group (GPT):
Diversified property group GPT has announced it has purchased five logistics properties in Sydney for a total amount of $212m. “These acquisitions and developments are consistent with GPT’s strategy to grow our position in the Logistics sector,” said chief executive Bob Johnston. “The assets are all well located with good access to transport links and will benefit from ongoing demand and constrained supply”. The settlements are expected to be completed in early July. The company also announced it had commenced work on a logistics development at Truganina in Melbourne’s west and had secured a heads of agreement for a ten year lease over a new logistics development at Berrinba, Brisbane.
Healthscope Ltd (HSO):
Private hospital operator Healthscope has announced that chief executive Gordon Ballantyne will step down following the completion of the $5.7 billion takeover by Canadian asset manager Brookfield. It comes after more than 99 per cent of Healthscope shareholders voted in favour the takeover on Wednesday, which included a scheme of arrangement at $2.50 a share to acquire 100 per cent of the Healthscope; $2.40 a share to lodge a takeover with a minimum 50.1 per cent acceptance, as well as two separate property deals. “In his relatively short time with the Company he has been an outstanding chief executive for our patients, employees and shareholders,” said Healthscope chairman Paula Dwyer. He has led a significant turnaround of the business, improving financial performance and establishing a strong platform for future growth.
Netcomm Wireless Ltd (NTC):
NetComm Wireless shareholders are being urged by the board to vote in favour of a $1.10 per share offer from Casa Systems, while shareholder and accountant Tas Davies has written to shareholders saying the offer should be rejected because shares should be valued at between $1.83 and $2.09. Mr Davies is urging shareholders who want the offer to sell their shares into the market at the current price, $1.09, or vote down the scheme at a meeting on 7 June and risk the volatility of NetComm's future growth. Meanwhile chairman Justine Milne, who recently saw MYOB safely transferred over to new owners, today urged shareholders to vote in favour of the Casa deal.
NIB Holdings Limited (NHF):
Private health insurer Nib has informed the market that its chief, Mark Fitzgibbon, has sold 80,000 shares, worth $532,646. The Australian-listed company said he sold the shares, which he held directly, on market on Tuesday, May 21. That was the day that the financial regulator released its latest quarterly data on the sector. Data released by the Australian Prudential Regulation Authority last Tuesday showed that health insurance coverage had fallen to its lowest level in 11 and a half years. The proportion of the population with private hospital cover was only 44.5 per cent in the March quarter. That was down from 44.6 per cent in December 2018, and the lowest since September 2007. Nib said Mr Fitzgibbon sold the shares to meet a personal income tax obligation resulting from past awards of remuneration for his role in the form of Nib shares.
Oil Search Limited (OSH) & Santos Ltd (STO):
Oil Search and Santos face delays agreeing the final plank of a $16 billion LNG expansion in Papua New Guinea following the resignation of Prime Minister Peter O’Neill but the recently agreed Papua LNG deal is unlikely to be tinkered with due to sovereign risk concerns, RBC analysts say. Mr O’Neill’s sudden departure over the weekend has cast a shadow over a gas expansion deal signed just six weeks ago between Oil Search, energy giants Total and ExxonMobil and the PNG government. But RBC says it is unlikely the deal will be retrospectively changed regardless of which political party ultimately takes power in the weeks ahead. “Sanctity of contract is critical to ongoing investment in PNG and to the success of future potential sovereign bond issuances,” RBC analyst Ben Wilson said. “The key ministers who negotiated the PRL15 deal with Total and the other joint venture parties will likely remain in a position of power irrespective of a potential change of government.”
Suncorp Group Ltd (SUN):
The departure of Suncorp boss Michael Cameron is believed to be linked to a disagreement with other board members about whether to retain the financial group’s banking operations. A career banker who has served as the group chief financial officer at the Commonwealth Bank and chief financial officer at Westpac’s St George Bank, Mr Cameron was known around the market to be eager to capitalise on opportunities with respect to Suncorp’s bank. However, there has been mounting investor pressure for Suncorp to become a pure play insurer. It is understood that the situation has escalated in a clash of views at a Suncorp board meeting this month about the bank’s future.
Vocus Group Ltd (VOC) & EQT Holdings Ltd (EQT):
Vocus shares have jumped nearly 25 per cent after the internet provider opened its books to EQT Infrastructure’s $3.3 billion takeover proposal. Australia’s fourth largest telecommunications provider on Monday said Stockholm- based private equity firm EQT had made a non-binding indicative proposal of $5.25 for each Vocus share. The offer represented a 35 per cent premium to the stock’s $3.89 valuation before the start of trade and, 35 minutes into Monday’s session, had pushed up the shares by 24.4 per cent to a two-and-a-half year high of $4.84. Vocus has granted non-exclusive due diligence access to EQT and expects any formal binding proposal “is likely to take a number of weeks”. “The board notes that there is no certainty that this process or the indicative proposal will result in an offer for Vocus,” the company said in a release. “Shareholders do not need to take any action in response to the indicative proposal at this time.”
Woolworths Group Ltd (WOW):
Woolworths has successfully completed a $1.7 billion off-market buyback following the sale of its petrol and convenience network to EG Group. “We are pleased with the outcome and the strong level of investor interest,” Woolworths chairman Gordon Cairns said. “Completion of the off-market buyback fulfils the board’s commitment to return the proceeds from the Woolworths Petrol sale to shareholders. Following the buyback, the Woolworths Group balance sheet will remain strong and allow sufficient flexibility for future growth as the Board remains focused on longterm shareholder value creation.”
WPP Aunz Ltd (WPP):
ASX-listed ad group WPP AUNZ says BMW executive Jens Monsees will be its new CEO. Mr Monsees, currently corporate vice president at BMW, will move to WPP AUNZ in October, taking the reins from John Steedman, who stepped in as interim CEO in October last year after Mike Connaghan resigned. Mr Steedman will continue in his role as executive director and chairman of the company’s media investment management division when Mr Monsees commences with WPP AUNZ. The company said that Mr Monsees had been “instrumental” in the business and cultural transformation of BMW during his tenure there. He has previously held senior executive positions in digital marketing and branding, including at Google Germany, as well as at Mondelez and Schwarzkopf & Henkel.
（Source: AIMS）
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