Author: roymorgansocial

Australian deal activity tipped to reach next peak in 2018

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 13 & 18 : 30-Jun-15

The value of completed mergers and acquisitions in Australia is expected to total $US74.1bn ($A96.1bn) in 2015, according to a report by Oxford Economics. This compares with $US73.7bn in 2014. The report, which was produced on behalf of law firm Baker & McKenzie, also forecasts that the value of local M&A deals will top $US126.3bn in 2018, followed by a fall in the next two years. Meanwhile, some $US2.4bn ($A3.1bn) worth of IPOs are expected to be undertaken in Australia in 2015, with IPO activity rising to $US6.6bn in 2018.

CORPORATES
OXFORD ECONOMICS LIMITED, BAKER AND McKENZIE, UBS HOLDINGS PTY LTD, MACQUARIE CAPITAL PTY LTD, GRANT SAMUEL AND ASSOCIATES PTY LTD

Qantas cash for Jetstar

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Original article by Jamie Freed
The Australian Financial Review – Page: 15 : 29-Jun-15

The Jetstar Japan joint venture between Qantas and Japan Airlines is believed to have a cash burn rate of about Y700m a month. It is also said to have cash holdings of around Y4bn. Meanwhile, Qantas will invest an additional Y2bn ($A21m) in the budget carrier in 2015, as part of a 2014 deal with its joint venture partner to collectively invest another Y11bn in the business in two instalments. Jetstar Japan posted a loss of Y11.1bn in 2013-14.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, JAPAN AIRLINES COMPANY LIMITED, MITSUBISHI CORPORATION, CENTURY TOKYO LEASING CORPORATION, JETSTAR JAPAN, JETSTAR HONG KONG AIRWAYS LIMITED, CISCO SYSTEMS INCORPORATED

Regulator close to call on NBN cable network deal

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Original article by David Ramli
The Australian Financial Review – Page: 15 : 29-Jun-15

On 23 June 2015, the Australian Competition & Consumer Commission (ACCC) approved a deal for Telstra to lease its telecommunications infrastructure to NBN. The ACCC is yet to rule on a deal for NBN to buy the hybrid-fibre coaxial network of Singtel Optus for $A800m. This deal would significantly speed-up the roll-out of the national broadband network. The ACCC expects to issue a draft ruling on the Optus deal in July.

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, NBN CO LIMITED, SINGTEL OPTUS PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. DEPT OF COMMUNICATIONS

Ron Walker’s cancer drug crusade pays national dividends

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Original article by Anne Hyland
The Australian Financial Review – Page: 1 : 29-Jun-15

The Australian Government will subside a cancer treatment that has been credited with saving the life of businessman Ron Walker. Keytruda will be added to the list of cancer drugs that are subsidised via the Pharmaceutical Benefits Scheme, which means cancer patients will pay at most just $A37.70 to access the drug. It would previously have cost some $A150,000 per year to be treated with Keytruda. Walker had lobbied the Government to subsidise the drug.

CORPORATES
AUSTRALIA. DEPT OF HEALTH, MERCK AND COMPANY INCORPORATED, LIBERAL PARTY OF AUSTRALIA

Stokes jumps Chinese buyers to get Kangaroo Island farm

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Original article by Simon Evans
The Australian Financial Review – Page: 31 : 29-Jun-15

Kerry Stokes and his business partner Peter Murray have paid $A4.7m for the 2,823-hectare Woodlana Station on Kangaroo Island in South Australia. Stokes now owns more than 10,000 hectares of farmland on Kangaroo Island and the Fleurieu Peninsula. Woodlana boasts 68 dams, 6,000 sheep and 500 cattle, and had been placed in receivership in mid-2014.

CORPORATES
COLLIERS INTERNATIONAL HOLDINGS (AUSTRALIA) LIMITED, HEARD PHILLIPS

Big four rank high for profitability: BIS

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Original article by Clancy Yeates
The Australian Financial Review – Page: 16 : 29-Jun-15

The Bank for International Settlements’ annual report shows that Australia’s four major banks outperformed their peers in developed countries in terms of profitability in 2014. The banks’ pre-tax profits were 1.28 per cent of their assets during the calendar year, ahead of the US and Canada. TS Lim of Bell Potter notes that Australia’s comparatively high interest rates contributed to the profitability of local banks.

CORPORATES
BANK FOR INTERNATIONAL SETTLEMENTS, BELL POTTER SECURITIES LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

More mining collapses ‘inevitable’

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Original article by Amanda Saunders
The Australian Financial Review – Page: 18 : 29-Jun-15

KordaMentha’s Scott Langdon expects more Australian mining services groups to experience financial problems in 2015. He says privately-owned firms whose turnover is below $A50m are most vulnerable to insolvency. However, Langdon adds that investors and lenders will seek alternatives to insolvency such as debt restructuring deals. He also forecasts an increase in cost reduction measures in the resources sector, such as staff and wage cuts, as well as the departure of some CEOs.

CORPORATES
KORDA MENTHA AND COLLEAGUES PTY LTD, BRADKEN LIMITED – ASX BKN, BIS INDUSTRIES LIMITED, ATLAS IRON LIMITED – ASX AGO, SIGDO KOPPERS SA, CHAMP PRIVATE EQUITY PTY LTD

Streaming addresses digital appetite: James

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Original article by Max Mason
The Australian Financial Review – Page: 29 : 29-Jun-15

Presto CEO Shaun James believes that Australian streaming video services offer sufficiently competitive prices to deter consumers from downloading illegal copies of films and TV shows. He argues that the situation cannot be compared with the rise of music-sharing service Napster, as there were no alternatives for buying legitimate copies of music online at the time. The Presto joint venture between Foxtel and Seven West Media will launch its first Australian-made TV show later in 2015.

CORPORATES
PRESTO ENTERTAINMENT PTY LTD, FOXTEL MANAGEMENT PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NAPSTER INCORPORATED, THE PIRATE BAY, XYZNETWORKS PTY LTD, WARNER MUSIC AUSTRALIA PTY LTD, APPLE INCORPORATED, NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Accolade’s Burge buy comes with $10m loss

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Original article by Simon Evans
The Australian Financial Review – Page: 18 : 29-Jun-15

Grant Burge Wines sells around 450,000 cases of wine in Australia each year, and ranks among the nation’s 10 biggest-selling wine brands. Accolade Wines acquired the business in early 2015 and has appointed Jeff Bond as general manager. His task will be to turn around Grant Burge’s fortunes, after it posted a loss of $A9.4m in 2013-14. This followed a modest profit of $A264,247 in the previous fiscal year. Revenue was $A40.4m in 2013-14, compared with $A43.2m previously.

CORPORATES
ACCOLADE WINES LIMITED, GRANT BURGE WINES PTY LTD, CHAMP PRIVATE EQUITY PTY LTD, PETER LEHMANN WINES LIMITED, CASELLA WINES PTY LTD, HARDY WINE COMPANY LIMITED, LEASINGHAM WINES, NOTTAGE HILL WINES, BANROCK STATION WINES, MUD HOUSE WINES LIMITED, CONSTELLATION BRANDS INCORPORATED, TREASURY WINE ESTATES LIMITED – ASX TWE, PENFOLDS WINES PTY LTD

Murray in the business of making a difference

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Original article by Carrie LaFrenz
The Australian Financial Review – Page: 13 & 18 : 29-Jun-15

Former Lion Nathan CEO Rob Murray has a track record of turning around struggling companies. He did so at Lion, as well as Spillers Petfoods and Nestle Foods in the UK. Murray is now on the boards of three Australian-listed companies whose outlooks are uncertain. He is a non-executive director of Southern Cross Media Group and chairs both Metcash and Dick Smith Holdings. Murray says Metcash’s price-matching strategy must focus on key grocery products, and has ruled out the sale of its Mitre 10 hardware business.

CORPORATES
METCASH LIMITED – ASX MTS, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, DICK SMITH HOLDINGS LIMITED – ASX DSH, LION PTY LTD, SPILLERS PETFOODS, NESTLE SA, IGA, MITRE 10 LIMITED, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, LIDL GMBH & CO KG, BUNNINGS GROUP LIMITED, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, TEN NETWORK HOLDINGS LIMITED – ASX TEN, SUPER RETAIL GROUP LIMITED – ASX SUL, LINFOX PTY LTD, BESTEST, CAMBRIDGE UNIVERSITY