CORPORATE DIVESTITURE – AUSTRALIA

Rio ices coal asset sale in full market

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 : 18-Apr-16

The large number of coal mines that are for sale globally has prompted Rio Tinto to put further asset sales on hold until the market improves. Rio is seeking buyers for the Mount Thorley Warkworth and Hunter Valley Operations mines in New South Wales, but it has not been able to find a buyer that is willing to pay a premium for the high-quality assets. Meanwhile, Whitehaven Coal MD Paul Flynn expects more mining companies to offer quality coal assets for sale.

CORPORATES
RIO TINTO LIMITED – ASX RIO, WHITEHAVEN COAL LIMITED – ASX WHC, GLENCORE PLC, ANGLO AMERICAN PLC, PEABODY ENERGY CORPORATION, VALE SA, BHP BILLITON LIMITED – ASX BHP, APOLLO GLOBAL MANAGEMENT LLC, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED

Telstra mulls Foxtel IPO

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Original article by Dominic White
The Australian Financial Review – Page: 1&8 : 18-Mar-16

Telstra is believed to be considering a sharemarket float or sale of its stake in pay TV Foxtel. As Foxtel is worth between $A8 billion and $A9 billion in total, Telstra could receive $A4.5 billion for its 50 per cent stake in the company. Foxtel announced on 17 March 2016 that its CEO Richard Freudenstein will be replaced by News Corporation Australia CEO Peter Tonagh.

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, FOXTEL MANAGEMENT PTY LTD, NEWS CORPORATION – ASX NWS, UBS HOLDINGS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, SEVEN NETWORK LIMITED, NINE NETWORK AUSTRALIA LIMITED, NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD

Glencore puts coal haulage business on the block for $1b

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Original article by Matthew Stevens, Amanda Saunders
The Australian Financial Review – Page: 21 & 26 : 17-Mar-16

Global mining company Glencore has confirmed that it will seek a buyer for its GRail coal haulage business in the Hunter Valley. It will shortly commence an auction process for the business, and it hopes to secure a deal by the September 2016 quarter. Glencore has invested around $A350m in the GRail business, which boasts EBITDA of $A100m. Potential buyers could include US-based Genesee & Wyoming, whose Freightliner subsidiary operates GRail on behalf of Glencore.

CORPORATES
GLENCORE PLC, GRAIL, GENESEE AND WYOMING INCORPORATED, FREIGHTLINER GROUP LIMITED, ASCIANO LIMITED – ASX AIO, PACIFIC NATIONAL PTY LTD, XSTRATA AG, RBC CAPITAL MARKETS, UGL LIMITED – ASX UGL, BHP BILLITON LIMITED – ASX BHP

Ten rebuffs Southern Cross offer to sell assets

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Original article by Dominic White
The Australian Financial Review – Page: 30 : 14-Mar-16

Regional broadcaster Southern Cross Media Group has offered to sell its TV assets to Ten Network during negotiations for a new affiliation agreement. However, Ten chairman David Gordon has ruled out any such deal, saying the metropolitan broadcaster is not interested in buying Southern Cross’s TV stations. Regional broadcasters are facing growing competition from the streaming services offered by metropolitan networks and offshore players such as Netflix.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, NETFLIX INCORPORATED, TRIPLE M CORPORATION PTY LTD, HIT NETWORK, FREEHILLS PTY LTD, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, WIN CORPORATION PTY LTD, DEUTSCHE BANK AG, APN NEWS AND MEDIA LIMITED – ASX APN, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS

Origin Energy chief open to discuss merger offers

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 & 24 : 4-Mar-16

Market watchers have suggested a number of future strategies for Origin Energy, including a demerger or merging its oil and gas assets with Santos. Origin MD Grant King says the group has not ruled out any of the options that have been mooted, but he notes that all such deals would be complex and take time to complete. Meanwhile, King has downplayed concerns about a modest delay in progress on completing the first two production trains at the Australia Pacific LNG project in Queensland.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, SANTOS LIMITED – ASX STO, CREDIT SUISSE (AUSTRALIA) LIMITED, CONOCOPHILLIPS, SINOPEC CORPORATION, BECHTEL GROUP, KANSAI ELECTRIC POWER COMPANY INCORPORATED, QUEENSLAND. DEPT OF THE PREMIER AND CABINET

Four malls to go in Vicinity sale

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Original article by Mercedes Ruehl, Nick Lenaghan
The Australian Financial Review – Page: 32 : 3-Feb-16

JLL will market four shopping centres on behalf of Australian-listed Vicinity Centres, which revealed plans for up to $A1bn of asset sales in late 2015. The properties to be sold are the Forest Hill Chase and Brimbank shopping centres in Victoria and the Clifford Gardens and Toombul shopping centres in Queensland. Vicinity boasts some $A23 billion worth of assets under management.

CORPORATES
VICINITY CENTRES – ASX VCX, JONES LANG LASALLE AUSTRALIA PTY LTD, FOREST HILL CHASE, BRIMBANK SHOPPING CENTRE, CLIFFORD GARDENS SHOPPING CENTRE, TOOMBUL SHOPPING CENTRE, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, BIG W DISCOUNT STORES, KMART AUSTRALIA LIMITED, SCENTRE GROUP – ASX SCG, THE BLACKSTONE GROUP LP, CHALLENGER LIMITED – ASX CGF, NOVION PROPERTY GROUP

NAB shareholders back Clydesdale spin-off

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Original article by Sally Rose, Clancy Yeates
The Australian Financial Review – Page: 15 & 18 : 28-Jan-16

National Australia Bank (NAB) will proceed with plans to demerge its Clydesdale Bank subsidiary in the UK, after 98 per cent of shareholders voted in favour of the deal. NAB shareholders will receive 75 per cent of Clydesdale’s shares, with the balance to be offered to institutional investors. However, the latter component of the transaction may be delayed if NAB fails to obtain a satisfactory price for the stock. NAB chairman Ken Henry says the bank’s dividend will not be affected by the sale of Clydesdale.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, CLSA AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 200 INDEX

Rio offloads coal mine for $347m

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Original article by Brian Robins
The Australian Financial Review – Page: 15 & 20 : 28-Jan-16

Indonesia-based Salim Group will pay $US244m ($A347m) for Rio Tinto’s undeveloped Mount Pleasant thermal coal asset in New South Wales. The deal also includes payment of a two per cent royalty if the thermal coal price rises to $US72.50 ($A104) per tonne. Thermal coal is currently trading at around $US50 per tonne, compared with about $US100 just 18 months ago. Rio Tinto previously sold its 40 per cent stake in the Bengalla thermal coal mine.

CORPORATES
RIO TINTO LIMITED – ASX RIO, SALIM GROUP, ANGLO AMERICAN PLC, CITIGROUP PTY LTD, NEW HOPE CORPORATION LIMITED – ASX NHC, PATERSONS SECURITIES LIMITED, ASCIANO LIMITED – ASX AIO, PACIFIC NATIONAL PTY LTD, AURIZON HOLDINGS LIMITED – ASX AZJ, PEABODY ENERGY CORPORATION, INDOFOOD, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

NAB unveils pricing range for Clydesdale

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Original article by Clancy Yeates
The Australian Financial Review – Page: 17 : 19-Jan-16

National Australia Bank (NAB) expects to float its British lender Clydesdale Bank in early February 2016. Volatility on global share markets has forced the Australian-listed bank to lower its price expectations for the float. NAB’s Craig Drummond says the British bank will be offered to shareholders at between Stg1.75 and Stg2.35 a share which suggests a market capitalisation of between Stg1.54 billion and Stg2.07 billion ($A3.19 billion and $A4.29 billion).

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, LONDON STOCK EXCHANGE, CREDIT SUISSE (AUSTRALIA) LIMITED

Vicinity to sell up to $1b of mall assets

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Original article by Nick Lenaghan, Mercedes Ruehl
The Australian Financial Review – Page: 33 : 15-Dec-15

Australian-listed Vicinity Centres plans to divest between $A750m and $A1bn worth of shopping centres during the next 12 months. Proceeds of the asset sales will be used to reduce debt, finance acquisitions and be reinvested in the redevelopment of its other assets. Vicinity has identified one bulky goods property in Queensland that it intends to sell, and CEO Angus McNaughton has flagged an exit from this asset class.

CORPORATES
VICINITY CENTRES – ASX VCX, NOVION PROPERTY GROUP, CHADSTONE SHOPPING CENTRE, WARRIEWOOD SHOPPING CENTRE