K64 Auxiliary Finance and Insurance Services

Economic turmoil to weigh on M&A: Goldman

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Original article by Joyce Moullakis
The Australian – Page: 15 : 14-Nov-22

Mark Sorrell of investment bank Goldman Sachs believes that global merger and acquisition activity will remain subdued until at least 2024. He notes that until recently, there had been widespread expectations that sentiment toward M&A deals would improve in the second half of 2023, but factors such as geopolitical tensions and aggressive interest rate increases have pushed back the likely time-frame for any rebound. Data from Refinitiv shows that there has been a 60 per cent decline in announced deals involving Australian companies in 2022, compared with the same time in 2021.

CORPORATES
THE GOLDMAN SACHS GROUP INCORPORATED, REFINITIV AUSTRALIA PTY LTD

Super giants split over best interests duty

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Original article by Lucy Dean
The Australian Financial Review – Page: 17 : 5-Oct-22

Industry Super Australia has used its submission to the Quality of Advice Review to criticise the proposal to water down the ‘best interests duty’. The new duty to provide ‘good advice’ would apply to financial services providers such as superannuation funds and banks. ISA contends that the good advice obligation will materially change how financial advice is offered and regulated, and will most likely result in lower quality of advice. The Association of Superannuation Funds of Australia and the Financial Services Council have expressed support for the proposed changes.

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, FINANCIAL SERVICES COUNCIL

Unprofitable firms worth $60b on ASX

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Original article by Vesna Poljak
The Australian Financial Review – Page: 23 : 21-Sep-22

Research from MST Marquee shows that 50 companies in the S&P/ASX 300 are unprofitable, up from 48 prior to the index’s latest quarterly rebalance. Hasan Tevfik of MST notes that investors continue to back unprofitable companies despite their poor performance, noting that these companies have a combined market capitalisation of about $60bn. He says the continued support for profitless companies may be due to investors’ hopes that they will deliver strong returns, as they did in 2009 and the first year of the pandemic.

CORPORATES
MST MARQUEE, STANDARD AND POOR’S ASX 300 INDEX

BHP’s monster dividend to lead a record week of returns

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Original article by Alex Gluyas
The Australian Financial Review – Page: 15 & 33 : 20-Sep-22

Australian investor will receive more than $18bn worth of dividend payments in coming days. Bell Potter strategist Richard Coppleson says BHP’s $12.5bn final dividend will be the biggest payout on record by an Australian-listed company. Rio Tinto’s local shareholders will in turn receive some $1.4bn worth of dividends. Telstra and Santos are among the other companies that will pay their dividends in coming days, while Fortescue Metals Group will pay $3.7bn worth of dividends next week. Listed companies will pay out a total of $33.5bn in dividends during September, and a further $9.6bn in October.

CORPORATES
BHP GROUP LIMITED – ASX BHP,{SPAC}BELL POTTER SECURITIES LIMITED,{SPAC}RIO TINTO LIMITED – ASX RIO,{SPAC}TELSTRA CORPORATION LIMITED – ASX TLS,{SPAC}SANTOS LIMITED – ASX STO,{SPAC}FORTESCUE METALS GROUP LIMITED – ASX FMG

BHP’s monster dividend to lead a record week of returns

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Original article by Alex Gluyas
The Australian Financial Review – Page: 15 & 33 : 20-Sep-22

Australian investor will receive more than $18bn worth of dividend payments in coming days. Bell Potter strategist Richard Coppleson says BHP’s $12.5bn final dividend will be the biggest payout on record by an Australian-listed company. Rio Tinto’s local shareholders will in turn receive some $1.4bn worth of dividends. Telstra and Santos are among the other companies that will pay their dividends in coming days, while Fortescue Metals Group will pay $3.7bn worth of dividends next week. Listed companies will pay out a total of $33.5bn in dividends during September, and a further $9.6bn in October.

CORPORATES
BHP GROUP LIMITED – ASX BHP,{SPAC}BELL POTTER SECURITIES LIMITED,{SPAC}RIO TINTO LIMITED – ASX RIO,{SPAC}TELSTRA CORPORATION LIMITED – ASX TLS,{SPAC}SANTOS LIMITED – ASX STO,{SPAC}FORTESCUE METALS GROUP LIMITED – ASX FMG

Tabcorp split follows trend showing spike in demerger share prices

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Original article by Richard Henderson
The Australian Financial Review – Page: 27 : 26-May-22

The Lottery Corporation has a market capitalisation of $10bn following its demerger from Tabcorp. UBS estimates that the combined share price movements of the two stocks since the split has added about 7.5 per cent to the market value of both companies. AGL Energy and Incitec Pivot are among other listed companies that are pursuing demerger plans. Nick Alexander of UBS says demergers often prompt mergers and acquisitions activity, while Macquarie Group’s analysis shows that spin-offs typically underperform for the first six months but tend to outperform in the long-term.

CORPORATES
THE LOTTERY CORPORATION LIMITED – ASX TLC, TABCORP HOLDINGS LIMITED – ASX TAH, AGL ENERGY LIMITED – ASX AGL, INCITEC PIVOT LIMITED – ASX IPL, UBS HOLDINGS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG

Labor to regulate buy now, pay later

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Original article by Glenda Korporaal
The Australian – Page: 19 : 27-Apr-22

Shadow financial services minister Stephen Jones has flagged greater regulation of the ‘buy now, pay later’ sector if Labor wins the federal election. Jones says the BNPL sector is operating in an "ambiguous" regulatory space, and he contends that it requires some degree of regulation as it is directly competing with credit providers. He has also indicated that Labor will take action to halt a sharp decline in the number of financial advisers, with many leaving the industry in recent years due to federal government reforms.

CORPORATES
AUSTRALIAN LABOR PARTY

Buy now, merge later: Zip, Sezzle in $491m tie-up

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Original article by David Ross
The Australian – Page: 13 & 16 : 1-Mar-22

Zip Co will acquire ‘buy now, pay later’ rival Sezzle in an all-scrip deal that values the latter at $491 million. The transaction comes less than two months after Latitude Financial announced that it would buy Humm’s BNPL and credit card businesses. The announcement coincided with the release of Zip’s results for the six months to 31 December. Zip reported an interim loss of $172.8 million, down from $455.9 million a year earlier, while revenue was up 89 per cent to $302.2 million.

CORPORATES
ZIP CO LIMITED – ASX Z1P, SEZZLE INCORPORATED – ASX SZL, LATITUDE FINANCIAL SERVICES GROUP LIMITED – ASX LFS, HUMM GROUP LIMITED – ASX HUM

Buy now, merge later: Zip, Sezzle in $491m tie-up

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Original article by David Ross
The Australian – Page: 13 & 16 : 1-Mar-22

Zip Co will acquire ‘buy now, pay later’ rival Sezzle in an all-scrip deal that values the latter at $491 million. The transaction comes less than two months after Latitude Financial announced that it would buy Humm’s BNPL and credit card businesses. The announcement coincided with the release of Zip’s results for the six months to 31 December. Zip reported an interim loss of $172.8 million, down from $455.9 million a year earlier, while revenue was up 89 per cent to $302.2 million.

CORPORATES
ZIP CO LIMITED – ASX Z1P, SEZZLE INCORPORATED – ASX SZL, LATITUDE FINANCIAL SERVICES GROUP LIMITED – ASX LFS, HUMM GROUP LIMITED – ASX HUM

Future Fund tops $200b, banks on active managers

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 15 & 20 : 2-Feb-22

The federal government’s Future Fund has posted a return of 19.1 per cent for 2021. The sovereign wealth fund’s assets under management rose to a new high of $204bn during the calendar year. It has achieved a return of about 10.8 per cent each year since it was established in 2006 with just $60.5bn worth of assets. Future Fund CEO Raphael Arndt has warned that investors cannot expect the "easy returns" of the last decade or so to continue. He adds that some asset classes will be impacted when interest rates start to rise, although he has downplayed the prospect of stagflation.

CORPORATES
AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY