CORPORATE DIVESTITURE – AUSTRALIA

BHP and Rio Tinto quietly exit coal

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Original article by Angus Grigg
The Australian Financial Review – Page: 1 & 5 : 3-Dec-15

Australian-listed BHP Billiton and Rio Tinto have both significantly reduced their thermal coal production since 2008. Rio Tinto has also offloaded some $US2bn worth of thermal coal mines in recent years, while the future of its Hunter Valley mines is uncertain, and BHP spun off some of its thermal coal mines into South32. While coal divestment lobby groups such as 350 Australia have welcomed the big miners’ move to reduce their exposure to coal, Rio Tinto’s Sebastien Jacques recently forecast that global demand for thermal coal will remain strong.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SOUTH32 LIMITED – ASX S32, 350 AUSTRALIA, PENGANA GLOBAL RESOURCES FUND, CITIGROUP PTY LTD, INSTITUTE FOR ENERGY ECONOMICS AND FINANCIAL ANALYSIS, UNITED NATIONS, SOUTHGOBI RESOURCES LIMITED, BLOOMBERG LP

Woolworths ‘treasure chest’ ready to open

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Original article by Catie Low
The Australian Financial Review – Page: 15 : 9-Oct-15

Bank of America Merrill Lynch analyst David Errington estimates that Woolworths could unlock about $A3bn worth of capital by streamlining its operations. He argues that Woolworths should focus on its core food and liquor business, while retaining its gaming division and offloading Big W and exiting the loss-making Masters hardware joint venture. The Masters business in particular may come under scrutiny when Woolworths completes its board renewal process.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, LOWE’S COMPANIES INCORPORATED, CITIGROUP PTY LTD, TESCO PLC, KELLOGG COMPANY, RESERVE BANK OF AUSTRALIA

NAB intensifies pitch for Clydesdale float

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Original article by Clancy Yeates
The Australian Financial Review – Page: 19 & 24 : 16-Sep-15

National Australia Bank (NAB) CFO Craig Drummond has not ruled out a trade sale for the UK’s Clydesdale Bank if a suitable offer is made, but he says a demerger and partial IPO remains the preferred option. NAB shareholders will be offered up to 80 per cent of shares in Clydesdale if the previously outlined plan proceeds. Clydesdale CEO David Duffy is confident that so-called "challenger banks" such as Clydesdale can compete with the major UK banks, particularly in sectors such as retail banking and retail and lending to small business.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, BANCO SABADELL, CREDIT SUISSE (AUSTRALIA) LIMITED, CBA EQUITIES LIMITED

Spanish ‘interest’ won’t derail NAB Clydesdale float

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Original article by James Chessell
The Australian Financial Review – Page: 16 : 11-Sep-15

There is speculation that Spain-based Sabadell may be a potential buyer of the UK’s Clydesdale Bank, which is being sold by National Australia Bank (NAB). The Spanish bank has previously paid Stg1.7bn for TSB Bank. NAB plans to offload Clydesdale via an IPO and the sale of shares directly to its own stockholders, and NAB sources say this has not changed. CEO Andrew Thorburn indicated in August 2015 that investors would be updated on the sale process in October.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, YORKSHIRE BANK PLC, BANCO SABADELL, TSB BANK LIMITED, LLOYDS BANKING GROUP PLC, THE GOLDMAN SACHS GROUP INCORPORATED

Fight against fossil fuels gains ground

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Original article by Amanda Saunders, Jemima Whyte
The Australian Financial Review – Page: 7 : 28-Aug-15

The City of Melbourne will examine its investment policy with a view to divesting its shares in fossil fuels. Councillor Arron Wood said the council was aiming for zero net emissions by 2020 and it was important to lead by example. Albury City Council has also decided to review its investments following Newcastle’s shock decision to sell its shares in banks which fund miners.

CORPORATES
CITY OF MELBOURNE, NEWCASTLE CITY COUNCIL, ALBURY CITY COUNCIL, MOUNT ALEXANDER SHIRE COUNCIL, WESTPAC BANKING CORPORATION – ASX WBC, CITY OF SYDNEY, CITY OF PERTH, BLUE MOUNTAINS CITY COUNCIL

Fortescue price hopes still too high for Chinese suitors

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Original article by Amanda Saunders
The Australian Financial Review – Page: 20 : 18-Aug-15

Chinese companies Hebei Iron & Steel and the Tewoo Group are believed to be interested in acquiring stakes in Fortescue Metals Group. Fortescue is under pressure to sell some assets to improve its balance sheet although there is no immediate need to do so. The company is expected to announce $US390 million ($A527 million) in profit for 2014-15, compared with profit of $US2.65 billion in 2013-14.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, HEBEI JINXI IRON AND STEEL COMPANY LIMITED, TEWOO GROUP, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD

Woolworths to offload two key DJs sites

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Original article by Sue Mitchell
The Australian Financial Review – Page: 19 : 23-Jul-15

Woolworths Holdings CEO Ian Moir says the South African group plans to reinvest the proceeds of David Jones asset sales into the department store business. Woolworths is set to sell one of the David Jones stores in both the Melbourne and Sydney CBDs. The two stores could fetch around $A400m in total, and Moir says the remaining two stores in the CBDs will be expanded and upgraded. The David Jones food halls will also be upgraded at a cost of $A8m.

CORPORATES
WOOLWORTHS HOLDINGS LIMITED, DAVID JONES LIMITED, COUNTRY ROAD LIMITED, WITCHERY FASHIONS PTY LTD, TRENERY, SEED, FCUK

Weak gas prices trigger AGL shift

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 1 & 6 : 7-Jul-15

AGL Energy will not proceed with the Hunter coal-seam gas project in New South Wales or the expansion of its Camden project. However, AGL will press ahead with its Gloucester coal-seam project, despite a $A275m impairment charge that has reduced the value of the project to $A131m. AGL has revealed total writedowns in excess of $A600m after a review of its gas assets. AGL plans to sell some oil and gas assets, and it will no longer aim to derive 50 per cent of the gas supplied to customers from its own resources.

CORPORATES
AGL ENERGY LIMITED – ASX AGL, CITIGROUP PTY LTD, ESSO AUSTRALIA PTY LTD, BHP BILLITON LIMITED – ASX BHP, JP MORGAN AUSTRALIA LIMITED, DEUTSCHE BANK AG

ANZ tipped to exit Asia banks

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Original article by James Eyers
The Australian Financial Review – Page: 21 : 3-Jul-15

The ANZ Bank currently has a lower common equity tier 1 capital ratio than its peers, although at 8.7 per cent it is comfortably above the minimum requirement. However, Andrew Triggs of Deutsche Bank expects ANZ to offload some of its stakes in Asian banks in order to lift its capital ratio. He estimates that selling stakes in three of these banks – as well as the Esanda business – could boost ANZ’s capital ratio to more than 10 per cent.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, DEUTSCHE BANK AG, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ESANDA FINANCE CORPORATION LIMITED, PT PANIN BANK, AMBANK BERHAD, BANK OF TIANJIN COMPANY LIMITED, SHANGHAI RURAL COMMERCIAL BANK, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CLYDESDALE BANK PLC, GREAT WESTERN BANK, UBS HOLDINGS PTY LTD, BLOOMBERG LP

Healthscope offloads pathology business

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Original article by Tim Binsted
The Australian Financial Review – Page: 15 : 24-Jun-15

Crescent Capital has paid $A105m for the pathology assets of Australian-listed Healthscope, with the deal comprising a cash component of $A92.5m and a $A12.5m promissory note. Healthscope CEO Robert Cooke says the deal will allow the group to focus on its core business of private hospitals. In addition to Healthscope’s pathology laboratories and collection centres, the private equity firm will also buy a portfolio of six skin clinic.

CORPORATES
HEALTHSCOPE LIMITED – ASX HSO, CRESCENT CAPITAL PARTNERS LIMITED, SONIC HEALTHCARE LIMITED – ASX SHL, PRIMARY HEALTH CARE LIMITED – ASX PRY, TPG CAPITAL LP, THE CARLYLE GROUP, CLSA AUSTRALIA PTY LTD, NATIONAL DENTAL CARE PTY LTD, LIFEHEALTHCARE GROUP LIMITED – ASX LHC, NATIONAL HEARING CARE LIMITED, SOUTHERN SUN SKIN CANCER CLINICS