Rationale for Foxtel IPO remains: Telstra’s Penn

Original article by Max Mason
The Australian Financial Review – Page: Online : 5-Jun-19

Telstra CEO Andy Penn has indicated that a sharemarket float of pay-TV company Foxtel is still likely at some point. He says the reasons for a Foxtel IPO are as compelling as when the proposal was first mooted several years ago. Telstra reduced its stake in Foxtel from 50 per cent to 35 per cent as part of a restructuring that resulted in the merger of Foxtel and News Corp-owned Fox Sports. Penn adds that Foxtel is still an important asset for Telstra, and the telco will retain a stake in Foxtel if it is floated.

CORPORATES
FOXTEL MANAGEMENT PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, FOX SPORTS AUSTRALIA PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, KAYO SPORTS, STAN ENTERTAINMENT PTY LTD, NETFLIX INCORPORATED

Police raid an attack on press freedom

Original article by Richard Ferguson, Zoe Samios
The Australian – Page: 1 & 4 : 5-Jun-19

The Media Entertainment & Arts Alliance has described an Australian Federal Police raid on the home of journalist Annika Smethurst as an "outrageous attack" on press freedom. The raid was in response to an April 2018 article which revealed that the Australian Signals Directorate may be given powers to gain access to the emails, bank records and text messages of Australian citizens. Smethurst is a senior press gallery reporter and the political editor of News Corp Australia’s Sunday newspapers.

CORPORATES
MEDIA, ENTERTAINMENT AND ARTS ALLIANCE, AUSTRALIAN FEDERAL POLICE, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, AUSTRALIAN SIGNALS DIRECTORATE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, 2GB, AUSTRALIA. DEPT OF HOME AFFAIRS, LAW COUNCIL OF AUSTRALIA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT

News Corp not interested in free-to-air TV: Miller

Original article by Max Mason
The Australian Financial Review – Page: 13 : 4-Jun-19

News Corp Australasia chairman Michael Miller says pay-TV operator Foxtel is the media group’s primary broadcasting focus in Australia, and it will not seek to acquire a free-to-air network. The merger between Nine Entertainment and Fairfax Media in 2018 prompted speculation that News Corp could bid for the Seven Network. However, News Corp has since launched streaming video service Kayo Sports, which is part of Foxtel’s strategy to compete with digital rivals.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FOXTEL MANAGEMENT PTY LTD, KAYO SPORTS, SEVEN NETWORK LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED, FOX SPORTS AUSTRALIA PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, MACQUARIE MEDIA LIMITED – ASX MRN, TEN NETWORK HOLDINGS LIMITED, CBS CORPORATION

BHP faces call for write-down as Rio advances potash dream

Original article by Peter Ker
The Australian Financial Review – Page: 15 : 3-Jun-19

BHP is slated to decide within 18 months if it will commit an additional $US5.5bn to the first stage of its Jansen potash project in Canada. CEO Andrew Mackenzie recently told investors that BHP has overinvested in the project to date, and James Gurry of Deutsche Bank says it may be a good time for BHP to review the carrying value of Jansen. He adds that there is potential for an initial impairment of around $US1.2bn ($1.7bn). Meanwhile, Rio Tinto’s Albany potash joint venture in Canada could commence production within two years.

CORPORATES
BHP GROUP LIMITED – ASX BHP, DEUTSCHE BANK AG, RIO TINTO LIMITED – ASX RIO, JSC AKRON

News Corp eyes growth but flags job cuts as skills change

Original article by Max Mason
The Australian Financial Review – Page: 29 : 3-Jun-19

News Corp Australasia’s executive chairman Michael Miller says its Australian newspapers will achieve a third successive year of profitable growth in 2019-20. Miller notes that News Corp will be looking to bring in people with new skills to the company, while roles that are no longer needed will be abolished. Miller says that increases in digital subscriptions are reducing the company’s reliance on advertising, while he supports the turnaround strategy being adopted by pay-TV unit Foxtel.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FOXTEL MANAGEMENT PTY LTD, REA GROUP LIMITED – ASX REA

How the Murdochs lost the fight for Sky

Original article by Christopher Williams
The Australian Financial Review – Page: R1 & R6 : 31-May-19

The Murdoch family first tried to take full control of Sky in the UK in 2011 through News Corporation, but the attempt was unsuccessful. James Murdoch made another attempt to secure full control of Sky in 2016, this time through Fox. In announcing the bid, Murdoch expressed confidence that it would be approved by regulators within six months. Britain’s Culture Secretary Karen Bradley initially referred the bid to Ofcom, before referring it to the Competition & Markets Authority in September 2017. At around that time, Rupert Murdoch was in the process of putting together a mega media deal that would eventually end up with Comcast rather than Fox securing control of Sky.

CORPORATES
SKY PLC, NEWS CORPORATION – ASX NWS, 21ST CENTURY FOX INCORPORATED, GREAT BRITAIN. DEPT OF CULTURE, MEDIA AND SPORT, GREAT BRITAIN. COMPETITION AND MARKETS AUTHORITY, GREAT BRITAIN. OFFICE OF COMMUNICATIONS, COMCAST CORPORATION

Coles reviews promotions as waste hits $10b

Original article by Sue Mitchell
The Australian Financial Review – Page: 15 & 18 : 30-May-19

Grocery giant Coles has conceded that it is still heavily reliant on price discounting as a key driver of sales growth rather than the ‘every day low prices’ model that it has been pursuing for a decade. Nielsen estimates that discounting costs Australian grocery retailers about $51m a year; this includes "wastage" of about $10.1bn on the discounting of goods that consumers would have bought at the full price. Coles intends to review its discounting strategy, with the aim of scaling it back over a period of time.

CORPORATES
COLES GROUP LIMITED – ASX COLCOLES SUPERMARKETS AUSTRALIA PTY LTDTHE NIELSEN COMPANY (AUSTRALIA) PTY LTDAUSTRALIAN FOOD AND GROCERY COUNCILWESFARMERS LIMITED – ASX WESWOOLWORTHS GROUP LIMITED – ASX WOWCITIGROUP PTY LTD

Free-to-air TV hit as streaming lifts off

Original article by Andrew White
The Australian – Page: 19 : 30-May-19

Morgan Stanley has warned that the profits and advertising revenue of traditional media companies will decline as streaming video and music providers become more popular. This in turn has implications for the valuation of print and broadcast media companies. Morgan Stanley also says the rising cost of sports broadcasting rights may be unsustainable as TV networks’ revenue declines. The firm expects 70 per cent of Australian households to have access to a streaming service within five years.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITEDSTAN ENTERTAINMENT PTY LTDNETFLIX INCORPORATEDNINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NECSEVEN WEST MEDIA LIMITED – ASX SWMTEN NETWORK HOLDINGS LIMITEDPRIME MEDIA GROUP LIMITED – ASX PRTSOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXLHT&E LIMITED – ASX HT1NOVA ENTERTAINMENT PTY LTDWIN CORPORATION PTY LTDAUSTRALIAN BROADCASTING CORPORATIONSPECIAL BROADCASTING SERVICE (SBS)

Debt-free Galaxy Resources to back lithium processing plant in China

Original article by Brad Thompson
The Australian Financial Review – Page: 21 : 30-May-19

Galaxy Resources has revealed plans to acquire a minority stake in a new or existing lithium processing plant in China. The plant will process spodumene concentrate from Galaxy’s Mount Cattlin mine in Western Australia into lithium carbonate or lithium hydroxide. Galaxy chairman Martin Rowley says Mount Cattlin’s remaining mine life is relatively short, so it makes more sense to invest in a Chinese processing plant than to build one in Western Australia. Galaxy recently acquired a stake in rival lithium exporter Alliance Mineral Assets.

CORPORATES
GALAXY RESOURCES LIMITED – ASX GXYALLIANCE MINERAL ASSETS LIMITED – ASX A40POSCOJP MORGAN AUSTRALIA LIMITEDMINERAL RESOURCES LIMITED – ASX MINCOWAN LITHIUM LIMITED – ASX COW

Vale Sir Arvi Parbo AC, Kt. Memorial Commemoration & Video of Service at Melbourne Town Hall, May 27, 2019

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Arvi Hillar Parbo, the second of four sons to Aado and Hilda (nee Rass), was born on 10th February 1926 in Tallinn, Estonia. His secondary education was interrupted by World War II. When the war ended in 1945, 19 year old Arvi Parbo entered a Displaced Persons Camp and became a refugee in Germany where he finished his secondary education, and in 1946 he enrolled at the Clausthal Mining Academy. After two years, he decided that because opportunities in mining were limited in Germany, he would emigrate.

He arrived in Melbourne in November 1949 and was sent to work in a quarry south of Adelaide. Arvi Parbo enrolled at Adelaide University and completed a degree in Mining Engineering (with First Class Honours) in 1955.

Professor John P. Morgan, from Adelaide University, helped Arvi secure a position with WMC in Western Australia. Arvi Parbo and Saima had met in a refugee camp in Germany, they travelled to Australia separately and did not meet again until a chance encounter in Adelaide years later. They married in Adelaide in 1953. Ellen was born in Adelaide and their two sons, Peeter and Martin, were born at Southern Cross, Western Australia.

In February 1968, Arvi Parbo was appointed General Manager of WMC, Director in September 1970, Managing Director in November 1971 and Chairman and Managing Director in October 1974.

In 1986, after 15 years as Managing Director of WMC, Sir Arvi Parbo relinquished the role, but remained Executive Chairman until December 1990 when he retired as an Executive, but remained Chairman until retirement in 1999.

In August, 1987, Sir Arvi Parbo was appointed a Director of The Broken Hill Proprietary Company Limited (BHP) and Chairman from May 1989 to May 1992.

Throughout his life, Sir Arvi Parbo was widely engaged in community and business organisations where his personal advice was welcomed and appreciated both in Australia and internationally.

Link to full Memorial Commemoration PDF here.

Watch full program of Memorial Commemoration here.