Collins Foods has lifted its payout to shareholders after strong sales at its Australian KFC network helped the company boost fullyear profit 20.3 per cent to $39.1 million. Revenue at the global fast-food franchisor for the 12 months to April 30 rose 16.9 per cent to $901.2 million, with a 3.7 per cent same-store sales growth across its 231 franchised KFC Australia stores beating last year’s 1.8 per cent growth. Managing director and chief executive Graham Maxwell said the KFC result had been helped by an increase in app-based sales, with 64 restaurants now supporting KFC delivery through the likes of Deliveroo and Menulog.“Innovation and great value remain at the heart of KFC Australia,” Mr Maxell said in a release to the ASX on Tuesday. Collins - which also owns the local rights to Taco Bell and Sizzler -said on Tuesday it will pay a final dividend of 10.5 cents per share, fully franked, up from 9.0 cents per share a year ago.
Domino's Pizza Enterprises Ltd (DMP):
Pizza franchise Domino’s has responded to reports alleging underpayment of team members, saying it had not been served with any claim. According to a report by the Herald Sun, the chain will today be hit with a class action by delivery drivers and in-store workers who claim to have been underpaid for almost five years. But in a notice to the market, Domino’s said it had not received any contact about this matter.“Domino’s takes the proper payment of its team members seriously. Any formal proceedings received will be reviewed and actioned in the ordinary course,” it said.
Insurance Australia Group Ltd (IAG):
IAG has held talks about selling its 26 per cent interest in Indian insurer SBI General. The ASX-listed firm says it is continuing to assess options for its joint venture interests in Asia, including its SBI stake, but that there is no certainty of any transaction. IAG was responding to a report in the Indian Economic Times, which reported that six private equity funds were potentially interested in acquiring the SBI stake. The Indian paper named PremjiInvest, Carlyle, ChrysCapital and GICNSE of Singapore as being among those on a shortlist of interested parties. IAG said only it would keep the market informed in accordance with its continuous disclosure obligations should it reach any agreement.
IOOF Holdings Limited (IFL):
The interim chief executive of troubled wealth group IOOF will take on the role permanently with zero short-term bonus. In a widely anticipated move by the market, interim chief executive Renato Mota will take on the chief executive role permanently as of Tuesday. This follows the departure of chief executive Chris Kelaher, who walked away from the job with a $1.3 million payout after 10 years in the role. The board will also appoint Andrew Bloor as an independent non-executive director. He has been an independent non-executive director on the boards of three IOOF subsidiaries.
National Storage REIT (NSR):
The listed National Storage REIT has launched a $170 million institutional placement as it looks to expand locally and in New Zealand. The sector is running hot with Mirvac, Dexus and Charter Hall vehicles already tapping the market this year in a spate of raisings to buy more properties. JPMorgan and Morgan Stanley are handling the placement at a fixed price of $1.71 per share, a 4.4 per cent discount to the distribution adjusted last close of $1.79. National Storage will also have a security purchase plan to raise a further $20m and said it had struck about $235m worth of storage deals across Australasia in this half. The company is also advancing its planned New Zealand capital partnership and is refinancing its debt arrangements.
Sandfire Resources NL & Mod Resources Ltd (SFR & MOD):
Sandfire Resources has upped its bid for Botswana copper play MOD Resources, tipping in cash and improving its scrip offer to get the deal over the line. Sandfire’s initial one-for-17 all-scrip bid for MOD - valuing the explorer at about $113 million, or 38c a share - was quickly rejected in January, but the Karl Simich-led copper miner today came back to the table with a vastly improved offer, winning the support of MOD’s board. The revised $167 million offer, flagged in The Australian’s Dataroom today, comes in at 45c - either in cash or Sandfire shares, with cash payments capped at $41.6 million. At stake is MOD’s T3 copper project in Botswana, along with an extensive land holding in the region. The late stage development project, scheduled for construction next year, has reserves worth 343,000 tonnes of copper.
Telstra Corporation Ltd (TLS):
Telstra is axing its 1800 mobile and data plans and replacing them with 20 in a massive overhaul of its consumer and enterprise services. The new plans have five pillars: no lock in plans, freedom to change a plan once a month, no excess data charges in Australia, 24 and 36 month device payment options and an ability to personalise plans through add-ons. Under Telstra’s new regime, users can change their data limits once every month. They can exit plans at any time provided they pay off handsets bought with those plans. Phones can be bought outright or on 24 and 36 months contracts. Telstra Group Executive, Consumer & Small Business Michael Ackland said a key feature was Telstra’s decision to abolish excess fees across the board. By default users who go over their data limits will be shaped to 1.5 megabits per second, which Telstra says is enough to watch video at standard definition. They will not be charged extra. Mr Ackland says the new streamlines plans were being launched “in the interests of simplicity”.
Vital Metals Limited (VML):
A Perth company whose gold and base metals exploration projects in Burkina Faso had to be put on hold amid escalating jihadist violence in the West African country is pivoting to become a rare earth oxide developer. Vital Metals says it will buy Cheetah Resources, a private company started by former Lynas Corp executives focused on bringing rare earth products into production. Cheetah has agreements in place to buy two rare earth projects, in Canada and Tanzania, with defined resources. It plans to supply high-purity rare earth feedstock to established third-party rareearth oxide separation facilities and refiners, rather than end users.“Cheetah’s team includes ex-managers from rare earth miner Lynas Corporation who have an in-depth knowledge of rare earth core bodies, markets and project development requirements,” Vital Metals executive director Zane Lewis said.“In essence, our vision is to become the next Lynas.” Vital is buying Cheetah for 400 million in shares up front, plus another 800 million later.
Zip Co Ltd (Z1P):
Afterpay rival Zip Co is in a legal battle to retain the right to use its name after Brisbane Broncos sponsor, home loan provider Firstmac, started legal action in the Federal Court alleging infringement of its Zip trademark. Zip Co told the ASX on Monday the dispute relates to Firstmac's trademark for financial affairs (loans) but noted that the Brisbane-based mortgage and loans provider had not previously raised any issue in relation to the buy now, pay later provider's use of its Zip trademarks. "Our reputation in Zip is so substantial that use of 'Zip' by others (in relation to lending services) is likely to be misleading and deceptive," said Zip Co co-founder Peter Gray.
(Source: AIMS)
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