K: Financial and Insurance Services

South Africans wrap up DJs

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Original article by Blair Speedy
The Australian – Page: 21-22 : 15-Jul-14

Gordon Cairns, chair of Australian-listed department stores chain David Jones (DJs), has announced that the takeover bid worth $A4 a share by South Africa’s Woolworths has been accepted. Support among investors was strong, with 50% of stockholders required to vote "yes" and the actual result being 89.6%. In terms of voted scrip, the 75% needed compares with an outcome of 96.8%. Entrepreneur Solomon Lew will sell his 9.9% holding into the scheme of arrangement and has abstained from the vote, meaning the deal can be ratified by the Federal Court on 17 July 2014. Lew will now also gain $A209m from the suitor for his interest of 11.8% in Country Road

CORPORATES
DAVID JONES LIMITED – ASX DJS, COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, WITCHERY FASHIONS PTY LTD, MIMCO DESIGNS PTY LTD, ASX LIMITED – ASX ASX

Coles to play banks at own game

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Original article by Jared Lynch
The Australian Financial Review – Page: 19 : 15-Jul-14

Coles will expand its product offerings in the financial services sector, with the introduction of personal loans. The grocery retailer expects to receive regulatory approval by the end of 2014, but Coles Finance director Rob Scott has declined to comment on the possibility that Coles could also seek a banking licence. The new products will be offered in partnership with GE Capital

CORPORATES
COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, GE CAPITAL AUSTRALIA, TESCO PLC, J SAINSBURY PLC, MARKS AND SPENCER PLC, MASTERCARD AUSTRALIA LIMITED, VISA INTERNATIONAL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

The $2500 house deposit; high-risk mortgages return

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Original article by Nick Lenaghan
The Australian Financial Review – Page: 1 & 6 : 14-Jul-14

The Australian Prudential Regulation Authority has made banks cut the number of mortgages they write that have high loan-to-valuation ratios (LVRs). However smaller and nonbank providers now offer LVRs of as high as 99.375%, causing concern about a situation similar to the sub-prime mortgages crisis in the US in 2007. A new joint venture by home construction businesses BGC and Metricon even advises buyers to rely both on the first-home owners’ grant and a personal loan to raise a 5% deposit, with as little as $A2,500 of their own money. Meanwhile residential real estate prices have risen some 10% during 2013-14

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BGC (AUSTRALIA) PTY LTD, METRICON HOMES, HIVE EMPIRE PTY LTD, DIGITAL FINANCE ANALYTICS, RP DATA LIMITED, CORELOGIC AUSTRALIA PTY LTD, RISMARK INTERNATIONAL PTY LTD, RESERVE BANK OF AUSTRALIA, RAMS MORTGAGE CORPORATION LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, THE LOAN COMPANY, MOODY’S INVESTORS SERVICE INCORPORATED, BANK OF ENGLAND

CBA on track for planners: Norris

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Original article by Steve Creedy
The Australian – Page: 21 : 14-Jul-14

New Commonwealth Bank of Australia (CBA) CEO Ian Narev has issued an apology to customers affected by malpractice in its financial planning division between 2006 and 2010. The CEO at that time, Sir Ralph Norris, has now commented that he approves of Narev’s efforts in dealing with the scandal. It may cost the bank more than twice the $A52m already paid in compensation to the victims. CBA has also asked ex-High Court judge Ian Callinan to head a review of any further complaints. Sir Ralph says he was advised in 2010 that the matter was with the Australian Securities & Investments Commission

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COMMONWEALTH FINANCIAL PLANNING LIMITED

David Jones’ investors to vote

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Original article by Blair Speedy
The Australian – Page: 19 : 14-Jul-14

Stockholders in Australian-listed department stores chain David Jones (DJs) will vote on 14 July 2014 on the takeover bid worth $A4 a share by South African retailer Woolworths. It needs 50% of investors to approve it and 75% of stocks to be voted in favour, and may need to rely on entrepreneur Solomon Lew. He has built a stake of at least 9.9% in DJs, and has extracted a promise from Woolworths to also buy his 11.8% holding in Country Road. Woolworths has 88% of that entity. Lew has made no comment on which way he will vote, while the Australian Securities & Investments Commission may challenge the Country Road side deal in the Federal Court

CORPORATES
DAVID JONES LIMITED – ASX DJS, COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, PREMIER INVESTMENTS LIMITED – ASX PMV, JUST JEANS PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, OWNERSHIP MATTERS PTY LTD

Analysts urge Westpac to close 200 branches

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Original article by Clancy Yeates
The Australian Financial Review – Page: 17 : 11-Jul-14

Westpac Banking could reduce costs by closing up to 200 branches. Analysts from JPMorgan said that Westpac generated a third less profit per branch than some competitors. They said that the St George branches, acquired in 2008, were a drain on the business. Closing 200 branches is estimated to save $A400 million a year. The analysts said that Westpac should reconsider its strategy of offering a number of brands

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, JP MORGAN AUSTRALIA LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BANK OF SOUTH AUSTRALIA LIMITED, BANK OF MELBOURNE LIMITED, RAMS HOME LOANS PTY LTD, BANK OF WESTERN AUSTRALIA LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, UBANK, STANDARD AND POOR’S (AUSTRALIA) PTY LTD

Bitcoin here to stay and ready for rules

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Original article by Ruth Liew
The Australian Financial Review – Page: 17 : 11-Jul-14

Australian Digital Currency Commerce Association chairman delegate Ronald Tucker says the nation can be at the forefront of regulation for the Bitcoin digital currency. He has held talks on the issue with the Australian Taxation Office, Australian Securities & Investments Commission, Treasury and Reserve Bank of Australia. New businesses related to the trade in Bitcoins have attracted investment of $US300m-plus ($A310m) globally between early 2013 and mid-2014, and close to $A11m in Australia. They include the backdoor-listed Digital CC

CORPORATES
DIGITAL CC LIMITED – ASX DCC, AUSTRALIAN DIGITAL CURRENCY COMMERCE ASSOCIATION LIMITED, AUSTRALIAN TAXATION OFFICE, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, MTGOX, GREAT BRITAIN. HM REVENUE AND CUSTOMS, EUROPEAN BANKING AUTHORITY

3P Learning flunks first day on ASX – down 14pc

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Original article by Paul Smith, Sally Rose
The Australian Financial Review – Page: 21 & 26 : 10-Jul-14

The initial public offering of 3P Learning on 9 July 2014 was a disappointment. Stock in the Mathletics and Reading Eggs educational software provider had been issued at $A2.50, but opened at $A2.39 before closing at just $A2.15. The 14% drop compared with one of 1.1% for the S&P/ASX 200 Index for the day. The float had been the second-largest ever in the Australian technology sector, and the eighth-largest overall for calendar 2014 so far. CEO Tim Power says 3P will concentrate on further expansion and innovation rather than the ups and downs of its share price

CORPORATES
3P LEARNING LIMITED – ASX 3PL, FREELANCER LIMITED – ASX FLN, XERO LIMITED – ASX XRO, ASX LIMITED – ASX ASX, PACT GROUP HOLDINGS LIMITED – ASX PGH, GDI PROPERTY GROUP – ASX GDI, COVER-MORE GROUP LIMITED – ASX CVO, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, DEALOGIC (AUSTRALIA) PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, HYPERION ASSET MANAGEMENT LIMITED

Bank repossesses bikie clubhouse

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Original article by Chris Vedelago
The Age – Page: 12 : 10-Jul-14

A writ has been filed in the Supreme Court of Victoria by Commonwealth Bank of Australia, for the repossession of a property in London Drive, Bayswater. It is the clubhouse of the Immortals outlaw motorcycle gang, which has allegedly defaulted on $A117,000 worth of business loans at an interest rate of 8.3%-plus. The premises, searched by Victoria Police in 2013, house a licensed bar and are the venue of Immortals fund raising activities such as its annual Fancy Dress Schoolgirls Festival

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, IMMORTALS MOTORCYCLE CLUB, BANDIDOS MOTORCYCLE CLUB AUSTRALIA LIMITED, SUPREME COURT OF VICTORIA, VICTORIA POLICE

Macquarie, Nine on Resi road

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Original article by Andrew White
The Australian – Page: 21 : 10-Jul-14

Australian-listed financial services company Yellow Brick Road (YBR) is raising $42 million through a share issue to fund the acquisition of non-bank lender Resi. YBR will pay $A36 million in cash and shares for the target. Macquarie Group and Nine Entertainment will be issued with 17.1 million new shares in YBR, at $A0.70 a share, with other institutional investors taking 25.8 million shares

CORPORATES
YELLOW BRICK ROAD HOLDINGS LIMITED – ASX YBR, MACQUARIE GROUP LIMITED – ASX MQG, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, RESI MORTGAGE CORPORATION PTY LTD, VOW FINANCIAL HOLDINGS PTY LTD, BELL POTTER SECURITIES LIMITED, TICKETEK, MINERAL RESOURCES LIMITED – ASX MIN