AMP has delayed the transition of John Patrick Moorhead to chief financial officer by four months, with Gordon Lefevre to continue in the role until the $3.3 billion sale of the company’s insurance business is complete. The wealth manager said on Monday Mr Lefevre had agreed to remain as group CFO through the company’s first half result in August and would continue to drive the transaction with London-based wealth protection group Resolution Life. AMP said the separation of its insurance segment had proven complex and in some cases regulatory requirements had changed since the transaction was agreed in November.
Australia and New Zealand Banking Group (ANZ):
ANZ Banking Group has completed the sale its life insurance division to the local arm of Swiss insurance giant Zurich for $2.85bn, it announced to the market this morning. The deal, which was announced in December 2017, came after ANZ struggled to find a buyer for its complete OnePath wealth management division. It ended up splitting the unit but the sale of its pensions and investments operations to IOOF for $975m is still pending. The acquisition make Zurich the largest retail life insurer in Australia, as measured by premiums. More than 500 former ANZ staff members have joined Zurich as part of the transaction, the bank noted.
Boral Limited (BLD):
Boral shares were trading down 2.5 per cent at $5.29 after a downgrade to underperform from neutral at Credit Suisse, with the broker noting a 15 per cent increase in the share price over the last two weeks. Credit Suisse made the ratings change after Boral's investor day. If Boral meets fiscal year guidance, that would be a good result, Credit Suisse said, given weak residential activity in Australia and the US in the March quarter. Still, it noted that "for the first time, management conceded that growth in infrastructure and non-residential activity would not offset the decline in residential for fiscal year 2020." Credit Suisse downgraded its fiscal year 2020 earnings before interest and tax forecast by 17 per cent. The broker also cut its target price for Boral to $4.40 a share from $4.80 "reflecting the poor recent track record and impending cyclical downturn."
Brambles Limited (BXB):
Logistics company Brambles has announced it’s completed the sale of its IFCO reusable plastic containers business to the Abu Dhabi Investment Authority for $US2.51 billion ($3.52bn). The company (BXB) previously said up to $US1.95bn ($2.7bn) of the proceeds from the sale will be returned to shareholders through a combination of a pro-rata return of cash of about $US300 million — approximately 29 cents per share and an on-market share buyback of $US1.65bn. The company says it plans commence the on-market buyback in early June 2019 before pausing on 23 June 2019 when the Company enters its blackout period until its 2019 full year result announcement on 21 August 2019.
Gascoyne Resources Ltd (GCY):
Troubled gold miner Gascoyne Resources has collapsed, calling in administrators only weeks after an emergency capital raising designed to ease the company’s immediate woes. Gascoyne called in FTI Consulting yesterday, citing ongoing troubles reconciling the grades it thought it should be mining against what was actually coming out of the pit. The gold miner issued $20.6 million worth of shares at 5c in early May to creditors and investors, including $5.6 million in cash and the rest to underwriters of the raising, including its major creditors. Gascoyne said its administrators would continue operating the company’s gold mine in WA’s mid-west on a “business as usual” basis as it considers ways to get Gascoyne back on a solid financial footing.
Macquarie Group Ltd (MQG):
Macquarie Securities has paid a $300,000 penalty to comply with an infringement notice handed out by the Markets Disciplinary Panel. The MDP had reasonable grounds to believe that Macquarie contravened the market integrity rules that deal with the provision of regulatory data to ASX and Chi-X. Over a four-year period from July 2014 to July 2018, Macquarie transmitted approximately 42 million orders to ASX and Chi-X that included incorrect regulatory data or omitted required regulatory data. Over the same period, Macquarie also submitted approximately 377,000 trade reports to ASX and Chi-X with the same deficiencies. MDP said it considered Macquarie’s conduct to be “negligent”.
Metcash Limited (MTS):
Metcash has entered into an agreement with Drakes Supermarkets to supply its stores in Queensland for a further five years following the expiry of its existing contract. Metcash also informed the market that it has entered into a new supply deal with Drakes to supply its Foodland supermarkets in South Australia through to the end of September, with Drakes having the option of extending the deal for another year. The move comes after Metcash shares tumbled last year on news that the Drakes contracts wouldn’t be renewed. Metcash shares have plunged more than 20pc over four days last May after it flagged a potential $270m sales hit from losing the Drakes contract.
Nufarm Limited (NUF):
Australian-listed agribusiness Nufarm has warned investors its corporate risk relating to herbicide glyphosate has increased on the back of US lawsuits on the product. The company issued a statement to the local market today outlining that there had been several local press reports following three substantial jury verdicts in US courts against Monsanto, producer of Roundup, the most commonly used herbicide. Monsanto has lost three trials over links between cancer and glyphosate. “While there have not been any lawsuits against Nufarm in any jurisdiction in which it operates, which relate to glyphosate-based herbicides and alleged impacts on human health, the corporate risk relating to glyphosate has increased, and Nufarm therefore considers that further market disclosure is appropriate,” Nufarm said in a statement. “As a supplier of glyphosate based herbicides, Nufarm is exposed to risk of litigation brought against such suppliers. Nufarm anticipates that as these matters are litigated, the science – which has consistently shown that there is no causal link between glyphosate and cancer - will ultimately prevail.
Qantas Airways Limited (QAN):
Qantas has asked for best and final offers from Boeing and Airbus to supply an aircraft that could fly direct from Sydney to London and New York in 2022. The airline’s CEO told reporters in South Korea that the company had had meetings with senior executives from Boeing and Airbus in Seoul over the weekend and that it expects to place an order for its Project Sunrise by year’s end.
Volpara Health Technologies Ltd (VHT):
Volpara Health Technologies has launched a $55 million equity capital raising to fund the acquisition of US-based MRS Systems. The company, whose AI imaging algorithms assist the early detection of breast cancer, announced today that it had acquired MRS for $US14.59m. MRS is a medical software company that provides patient tracking and communication, and a radiology reporting platform, for sub-speciality radiology applications including breast and lung imaging. Volpara said MRS had an estimated 20 per cent market share of breast clinics in the US, with its software used in more than 1700 breast clinics. The Australian company added that the acquisition provided Volpara with an expanded footprint in the US.
Wellard Ltd (WLD):
Wellard founder Mauro Balzarini has “ceased the role” of chief executive of the cattle exporter. The company did not give a reason for the move and said Mr Balzarini would remain a non-executive director, with the terms of his departure still being finalised. John Klepec will continue in the role of executive chairman.
(Source: AIMS)
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