Commonwealth Bank of Australia (CBA): Commonwealth Bank will offload its global asset management business, Colonial First State Global Asset Management (CFSGAM) to Japan’s largest bank next month for after the $4.1 billion deal was passed by all regulators. Mitsubishi UFJ Trust and Banking Corporation (MUFG) agreed to buy the group last October to tap into future growth rates in Australia’s $2.8 trillion superannuation system. In a notice to the market overnight, Commonwealth Bank said the divestment was expected to complete in early August, with final sales proceeds of $4.2bn. Reports the Australian GBST Holdings Ltd (GBT): Financial technology developer GBST has told the market it was “incapable” to accept a series of takeover proposals from UK firm FNZ Group, standing by a lower offer from SS&C Technologies. The firm had been halted earlier in the week to respond to takeover offer from FNZ, with the true detail of the past week revealed in its statement to the market today. GBST said FNZ had put forward a proposal for $4 per share by scheme of arrangement with a one-day timeframe, then a further $3.95 per share proposal at 1.22am this mornining, only to be replaced by a $3.90 per share offer just two hours later. “While we are respectful of FNZ’s offers and sought to engage in good faith discussions on its latest proposals, they were nevertheless accompanied by unreasonable conditions and did not provide a reasonable period of time for the parties to enter into good faith discussions,” GBST chairman Allan Brackin told the market. “While FNZ’s proposals were described as binding, in the GBST Board’s view these were not capable of acceptance within the timeframes imposed by FNZ.”
GUD Holdings Ltd (GUD): Automotive parts business GUD Holdings has posted a slip in profit after the sale of its Oates business, and warned of challenging busines conditions. Releasing its full year results to the market, GUD reported profit of $59.6 million, down from $101.8 million last year, what it put down to the sale of Oates. Underlying net profit from continuing operations was up 10 per cent to $60.9m, thanks to strengthi n its Automotive business and Davey. The group declared a final dividend of 31c per share fully franked, and increase of 11pc on the previous year. “The year ended much softer than it started with business conditions challenging us. The top-line increase of 12 per cent primarily came from acquired businesses and much less so our existing businesses,” managing director Graeme Whickman said. He forecast modest growth for the year ahead, amid weak economic sentiment and demand, and said the company would expand efforts to address operating efficiency. Reports the Australian Mineral Resources Ltd (MIN): Mineral Resources’ $US1.15 billion sale of a 50 per cent stake in its Wodgina lithium project has taken a big step closer to completion after Chinese regulators ticked off Albemarle Corp’s proposed purchase. The Chris Ellison-led MinRes today said the US-based Albemarle had advised that the deal had received unconditional approval from the China State Administration for Market Regulation (SAMR). The consent of Chinese anti-trust regulators had shaped as the key area of uncertainty facing the deal, which was first announced late last year. MinRes and Albemarle were originally aiming to complete the deal by the end of June but agreed to extend the deadline to December due to the regulatory process taking longer than expected. Investors responded positively to the news, with MinRes shares jumping 6.2 per cent to $16.325 a share. That makes it the best-performed stock in the ASX 200 index today.
Oil Search Ltd (OSH): Papua New Guinea will recommend changes to the existing Papua LNG deal agreed with ousted Prime Minister Peter O’Neill, raising fresh hurdles for Oil Search and its partners to seal a broader $US13 billion ($18.7bn) gas expansion plan. Oil Search signed the Papua LNG agreement in April with its joint venture partners Total and ExxonMobil as the first part of a pact to double production by 2024 from the PNG LNG plant. Prime Minister James Marape has been carrying out a review of the agreement struck with Mr O’Neill with PNG now expected to push for a better commercial return along with potential regulatory changes. “We have finished our review and there are issues of our interest in Papua LNG which the state wants to rediscuss with the contracting parties,” PNG’s petroleum minister Kerenga Kua told The Australian. “We are looking for statutory and regulatory compliances on the one hand and pursuing our commercial interests on the other hand.” Total responded by saying it expects PNG to respect the previously inked deal, noting it has many LNG projects in its global portfolio.
(Source: AIMS)
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