K: Financial and Insurance Services

Reality of retirement will be ‘worrying’

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Original article by James Eyers
The Australian Financial Review – Page: 19 : 1-Oct-14

AMP CEO Craig Meller has warned of the looming problems in funding retirement for Australia’s ageing population. He said that the retirement outlook for millions of Australians was uncertain. He said that the superannuation guarantee should be increased to 12 per cent as saving 9.5 per cent of earnings is not enough. Meller said that the growing costs of retirement could threaten the country’s prosperity over the next 20 to 30 years

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. DEPT OF THE TREASURY, COMMONWEALTH FINANCIAL PLANNING LIMITED, MACQUARIE GROUP LIMITED – ASX MQG

Lynas plunges on $83m raising

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Original article by Sarah-Jane Tasker
The Australian – Page: 19 : 30-Sep-14

The stock of Australian-listed rare earths mining group Lynas Corporation on 29 September 2014 closed 25.22% lower at $A0.086. Investors reacted negatively to news that the company was staging a share issue designed to source $A83m in fresh capital, after posting a 2013-14 loss of $A13.1m. The issue price for the shares will be $A0.08. New institutional stockholders are set to account for $A12m, which Lynas will allocate to servicing of its current liabilities

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC, SOJITZ CORPORATION, JAPAN OIL GAS AND METALS NATIONAL CORPORATION

Leave RET alone, urge fund managers

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Original article by Andrew Main
The Australian – Page: 19 : 30-Sep-14

One option recommended by business leader Dick Warburton in his review of the Renewable Energy Target (RET) for the Australian Government is to reduce it from 41,000 gigawatt hours by 2020 to between 17,000 and 25,000. However the original RET is being strongly favoured by the Investor Group on Climate Change that represents some $A1trn worth of superannuation fund accounts. The lobbying body, which is chaired by Catholic Super CEO Frank Pegan, has started a public awareness campaign on the issue

CORPORATES
INVESTOR GROUP ON CLIMATE CHANGE, CATHOLIC SUPERANNUATION AND RETIREMENT FUND, AUSTRALIAN LABOR PARTY, AUSTRALIA. CLIMATE CHANGE AUTHORITY, AUSTRALIANSUPER PTY LTD, AMP CAPITAL INVESTORS LIMITED, AMP LIMITED – ASX AMP

Deals get harder for PE raiders

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Original article by Bridget Carter
The Australian – Page: 18 : 30-Sep-14

Australian Private Equity & Venture Capital Association CEO Yasser El-Ansary says access to funding for major acquisition deals has become more difficult to arrange in the private equity sector. He believes that instead of large-scale takeovers, the new trend will be purchases of non-core operations being divested by listed groups. The comments come as Treasury Wine Estates has rebuffed competing offers by Kohlberg Kravis Roberts and Rhone Capital and by TPG Capital

CORPORATES
TREASURY WINE ESTATES LIMITED – ASX TWE, KOHLBERG KRAVIS ROBERTS AND COMPANY, RHONE CAPITAL LLC, TPG CAPITAL LP, KKR AND COMPANY LP, AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED, SAI GLOBAL LIMITED – ASX SAI, WOOLWORTHS LIMITED – ASX WOW, DICK SMITH HOLDINGS LIMITED – ASX DSH, ASX LIMITED – ASX ASX, ANCHORAGE CAPITAL PARTNERS PTY LTD, UGL LIMITED – ASX UGL, DTZ AUSTRALIA PTY LTD, BAIN CAPITAL LLC, THE BLACKSTONE GROUP LP, PACIFIC EQUITY PARTNERS PTY LTD, ORICA LIMITED – ASX ORI, ARMYTAGE PRIVATE LIMITED

Medibank may deliver $5.7b at sale

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Original article by Jessica Gardner
The Australian Financial Review – Page: 4 : 30-Sep-14

Analysts have previously valued Medibank Private at between $A4bn and $A4.5bn. Goldman Sachs has suggested that the health insurer could potentially be worth between $A4.1bn and $A5.7bn, while Deutsche Bank values it at $A4.2bn to $A5.3bn. Watermark Funds Management’s Omkar Joshi says the Australian Government is likely to place a lower valuation on the stock in the hope that it will rise on the first day of trading on the sharemarket

CORPORATES
MEDIBANK PRIVATE LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, DEUTSCHE BANK AG, WATERMARK FUNDS MANAGEMENT PTY LTD, AUSTRALIA. DEPT OF FINANCE, MACQUARIE CAPITAL PTY LTD, NIB HOLDINGS LIMITED – ASX NHF, STANDARD AND POOR’S ASX 200 INDEX, RAMSAY HEALTH CARE LIMITED – ASX RHC, HEALTHSCOPE LIMITED – ASX HSO

RBA asked to explain backflip on lending risks

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Original article by Christopher Joye
The Australian Financial Review – Page: 6 : 29-Sep-14

The Reserve Bank of Australia (RBA) in mid-2013 reduced the official cash interest rate to a record low, and said the residential real estate market was not experiencing a "bubble". However a year on the central bank has revised its stance, and now warns of a dangerous prices surge. It may even resort to using macroeconomic tools, which has sparked concern among federal Senate economics committee members Matthew Canavan and Sam Dastyari of the National Party and Australian Labor Party respectively. RBA deputy governor Philip Lowe has been asked to address the committee on the issue

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN BUREAU OF STATISTICS

KKR tipped to win Treasury Wine

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Original article by Simon Evans, Sarah Thompson
The Australian Financial Review – Page: 1 & 11 : 29-Sep-14

Competing, revised takeover offers were lodged on 26 September 2014 for Australian-listed Treasury Wine Estates (TWE). It is believed that the directors will now recommend acceptance of the offer received from the consortium of Kohlberg Kravis Roberts (KKR) and Rhone Capital, rather than that of rival US-based private equity firm TPG Capital. The KKR bid is worth around $A5.20 a share. TWE’s earnings are being boosted by the recent decline in the Australian dollar

CORPORATES
TREASURY WINE ESTATES LIMITED – ASX TWE, KKR AND COMPANY LP, KOHLBERG KRAVIS ROBERTS AND COMPANY, RHONE CAPITAL LLC, TPG CAPITAL LP, PENFOLDS WINES PTY LTD, WOLF BLASS WINES PTY LTD, DELOITTE TOUCHE TOHMATSU LIMITED, CITIGROUP PTY LTD, GOLDMAN SACHS AUSTRALIA PTY LTD

Skin cancer drug developer plans to list

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Original article by Sally Rose
The Australian Financial Review – Page: 19 : 29-Sep-14

Melbourne-based Ascend Biopharmaceuticals will offer its shares at $A0.35 in an IPO that aims to raise between $A9m and $A11m. Proceeds of the float will be used to finance clinical trials of drugs that are intended to treat skin cancer and breast cancer. Ascend shares are slated to list on the Australian sharemarket on 14 November 2014

CORPORATES
ASCEND BIOPHARMACEUTICALS LIMITED, ONYVAX, ALCHEMIA LIMITED – ASX ACL, AMRAD CORP LIMITED, F HOFFMAN-LA ROCHE LIMITED, F HOFFMAN-LA ROCHE AG, IMMATICS, LODGE CORPORATE PTY LTD, TRANSGENE

Medibank flags cost cuts after float

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Original article by Jessica Gardner, Georgia Wilkins
The Australian Financial Review – Page: 1 & 6 : 29-Sep-14

Retail investors can pre-register for the upcoming sharemarket float of Medibank Private, which is expected to be Australia’s largest IPO since QR National in 2010. The Federal Government has indicated that Medibank customers who pre-register will be given priority when shares are allocated in the IPO, although they will not be given any free shares in the health insurer. Meanwhile, Medibank CEO George Savvides says the health fund will seek to reduce costs following the IPO

CORPORATES
MEDIBANK PRIVATE LIMITED, AUSTRALIA. DEPT OF FINANCE, AMP LIMITED – ASX AMP, NIB HOLDINGS LIMITED – ASX NHF, NRMA LIMITED, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, AURIZON HOLDINGS LIMITED – ASX AZJ, TELSTRA CORPORATION LIMITED – ASX TLS, MORNINGSTAR PTY LTD, COMMUNITY AND PUBLIC SECTOR UNION

Scales tipped in favour of $400m Huon IPO

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Original article by Bridget Carter
The Australian – Page: 18 : 29-Sep-14

Huon Aquaculture, which has a share of 40% of the salmon market in Australia, is staging an IPO worth more than $A400m. Simon Marais, MD of fund management firm Allan Gray Australia, notes that with Tassal commanding 50% the industry is a virtual duopoly, and this will underpin good earnings prospects for Huon. However there are some doubts by others, based on the long maturation period of three years for salmon stocks. Also planning a float is jewellery company Lovisa

CORPORATES
TASSAL GROUP LIMITED – ASX TGR, HUON AQUACULTURE COMPANY PTY LTD, LOVISA PTY LTD, ALLAN GRAY AUSTRALIA PTY LTD, PETUNA AQUACULTURE PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, CIMB SECURITIES INTERNATIONAL (AUSTRALIA) PTY LTD, MORGANS FINANCIAL LIMITED