AGL Energy may look to boost capital returns to shareholders after abandoning its $3 billion takeover of Vocus and should consider partnering with an NBN re-seller as an entry point into the telco sector rather than pursuing a chunky buyout deal, RBC says. The power giant unexpectedly scrapped takeover talks with Vocus this morning, ceasing due diligence on the telco target just days after chief executive Brett Redman talked up the deal as a way to stabilise more volatile earnings from its core electricity business.
Australia and New Zealand Banking Group (ANZ):
ANZ said on Monday that David Hisco, its New Zealand unit's chief executive officer, would leave the bank after concerns were raised about personal expenses. Antonia Watson will take over as acting chief executive, replacing Hisco, who has been facing health issues. He has been with ANZ more than 30 years, and CEO of ANZ New Zealand since 2010, according to the company's website. ANZ said in a statement its board expressed concern over certain transactions following an internal review of personal expenses, while the lender added that Hisco did not accept all concerns raised by the board.
Cochlear Limited (COH):
Cochlear reported this morning that it has received US Food and Drug Administration approval for its new Nucleus Profile Plus Series implant. These implants can be worn inside an MRI machine and today's announcement plugs an important hole for Cochlear after it rattled investors in February with the news that it lost market share in the US and Germany to MRI compliant rivals. Cochlear announced the new Profile Plus implants in April.
Flinders Mines Limited (FMS):
Flinders Mines has jumped 37 per cent this morning, up 1.8 cents to 7 cents, after it announced several board changes and a strategic path forward. Last year the stock price dropped from 7 cents in December down to 2.5 cents after Flinders announced plans to de-list from the ASX. This was later withdrawn and directors Neil Warburton, Michael Wolley, and Even Davies survived a vote to remove them as directors. David McAdam and Shannon Coates will now resign from the board and Cheryl Edwardes will join as an independent non-executive director. Flinders is also considering appointing more independent directors. Today Flinders announced plans to set up an infrastructure committee to hire a consultant to review "all potential infrastructure option for the Pilbara iron ore project".
McMillan Shakespeare Limited (MMS):
McMillanShakespeare Group this morning warns post-tax profit will be about 5 per cent lower than analyst expectations of $92 million at between $87 million and $89 million. It is also setting aside nearly $4 million in write-offs associated with its UK business and writing off $18.2 million in goodwill. The lower profit is due to lower than expected growth in the car retail market and contract extensions, which delays end of contract income. The good news is, McMillanShakespeare has surplus capital and franking credits. The board is considering what to do and has started with an off-market share buy-back of up to $100 million. McMillanShakespeare has also flagged a $3.7 million hit to full year results after its UK asset management made a bad deal. It entered some short-term contracts that allowed the return of vehicles without the usual contract break fees "with a customer that has subsequently been placed into administration and many vehicles are being returned prematurely".
Pilbara Minerals Ltd (PLS):
Lithium miner Pilbara Minerals has warned of delays from its Chinese offtake partners, what is set to push back its sales timeline. In a notice to the market this morning, Pilbara Minerals said it was being held up by delays in the construction, commissioning and build-out of its offtake customers and consequently, was taking steps to moderate production at its Pilgangoora operations until the end of July. “Pilbara Minerals believes this decision to moderate production in the short-term is prudent to responsibly manage cash flows and working capital, whilst the additional conversion capacity of Ganfeng, General Lithium and other industry participants come online,” it said. The miner said it would use the downtime to continue with its maintenance schedule but that it was confident of the medium to long-term outlook for the lithium market.
South 32 Ltd (S32):
South32 cuts coking coal estimates. South32 has lowered the estimated coal reserves at its Illawarra Metallurgical Coal project. The diversified miner says coal reserves for the Bulli seam have been reduced by 22 million wet metric tonnes to 114 million following conclusions of a commercial agreement to relinquish a portion of its mining lease in the Appin area. Coal reserves for the Wongawilli seam were unchanged, it said in a statement. The Illawarra project accounts for nearly all of South32’s coking coal output.
Vocus Group Ltd (VOC):
Vocus has just updated the market reiterating its full year guidance of underlying earnings before, interest, tax, depreciations, and amortisation of between $350 million and $370 million. Chief executive Kevin Russell says the company will continue with a three-year turnaround and has "great confidence that our strategy and ability to execute our business plan will deliver significant value to our shareholders in the medium to long term". "There is growing demand for our strategically valuable network assets and we have a substantial opportunity for Vocus Networks to gain market share".
Windlab Ltd (WND):
A wind energy company set up by former CSIRO scientists, Windlab, this morning announced it has increased its debt facility with the Federal Government's Clean Energy Finance Corporation from $3 million to $10 million. It has also extended the loan period to June 2022, but has to repay money in June 2020 and June 2021. Meanwhile, Windlab's Lakeland Eind Farm is proceeding through the tender process, but the Kennedy Energy Park is delayed due to trouble completing its "generator performance standards and subsequent registration as a generator",This is delaying energisation and commissioning. Negotiations are progressing with the grid operator and the project's engineering, procurement, and construction contractor to resolve the situation as quickly as possible," Windlab says. The project should start "energisation" in the June to September quarter with commercial operations following.
(Source: AIMS)
Latest comments