CORPORATE DIVESTITURE – AUSTRALIA

Seven West sells 50pc stake in Yahoo7

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Original article by Dana McCauley
The Australian – Page: 26 : 29-Mar-18

Yahoo7 is expected to be rebranded following Oath’s deal buy Seven West Media’s stake in the digital joint venture. However, Seven will retain all of its branded news and TV portals, while it may continue to provide non-exclusive content to Oath once the joint venture is formally unwound. Seven West Media CEO Tim Worner notes that Yahoo7 has an audience reach of about nine million and is upbeat about its outlook under the ownership of Oath.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, YAHOO!7 COMMUNICATIONS AUSTRALIA PTY LTD, OATH INCORPORATED, YAHOO! INCORPORATED, VERIZON COMMUNICATIONS INCORPORATED

Coking coal’s future bright

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Original article by Eli Greenblat
The Australian – Page: 17 & 26 : 29-Mar-18

Rio Tinto has completed its exit from the coal sector with the sale of its 80 per cent stake in the Kestrel coking coal mine in Queensland for $US2.5bn ($A3.2bn). The stake was sold to a consortium of EMR Capital and Indonesia-based Adaro Energy, and follows the recent sale of Rio Tinto’s Hail Creek and ­Valeria coal projects. EMR Capital CEO Jason Cheng is upbeat about the outlook for coking coal, arguing that demand will remain strong as there is no alternative to it for the steel industry.

CORPORATES
RIO TINTO LIMITED – ASX RIO, EMR CAPITAL PTY LTD, PT ADARO INDONESIA, SOUTH32 LIMITED – ASX S32, GLENCORE PLC

No quick return from coal sale

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Original article by Richard Gluyas, Matt Chambers
The Australian – Page: 20 : 22-Mar-18

Citigroup expects Rio Tinto to return the bulk of the proceeds from the sale of the Hail Creek coal to shareholders, after paying about $A300m in taxes on the $US1.7bn ($A2.2bn) deal. However, Rio Tinto CEO Jean-Sebastien Jacques says the resources group is unlikely to return capital to investors before the release of its full-year report in February 2019. He stresses that Rio Tinto is divesting its coal assets because commodities such as iron ore and aluminium offer better growth options.

CORPORATES
RIO TINTO LIMITED – ASX RIO, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD, PACIFIC ALUMINIUM PTY LTD

Rio Tinto sells Hail Creek to Glencore

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 21-Mar-18

Glencore will acquire Rio Tinto’s 82 per cent stake in the Hail Creek coking coal mine and its stake in the Valeria coal project in Queensland. The $US1.7bn ($A2.2bn) deal follows Rio Tinto’s sale of its Hunter Valley coal assets in New South Wales to Yancoal Australia for $US2.69bn in 2017. The sale of the Queensland assets has prompted speculation that Rio Tinto could use the proceeds to return capital to shareholders, as it did after the Yancoal deal.

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, YANCOAL AUSTRALIA LIMITED – ASX YAL, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, NEW HOPE CORPORATION LIMITED – ASX NHC, COMMITTEE FOR ECONOMIC DEVELOPMENT OF AUSTRALIA, WHITEHAVEN COAL LIMITED – ASX WHC, EMR CAPITAL PTY LTD, ADARO ENERGY

Coles’ capital structure key to Wesfarmers demerger success

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 & 32 : 20-Mar-18

Wesfarmers will retain a shareholding of up to 20 per cent in Coles and a seat on its board if the proposed demerger proceeds. David Errington from Bank of America Merrill Lynch does not endorse this idea, saying it would be better for Coles long-term if it has an independent board and share register. Investors and analysts are of the view that the potential for Coles to succeed once the demerger is completed will depend largely on its balance sheet and capital structure.

CORPORATES
WESFARMERS LIMITED – ASX WES, COLES SUPERMARKETS AUSTRALIA PTY LTD, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, WOOLWORTHS GROUP LIMITED – ASX WOW, KKR AND COMPANY LP, JP MORGAN AUSTRALIA LIMITED, PARADICE INVESTMENT MANAGEMENT PTY LTD, AIRLIE FUNDS MANAGEMENT PTY LTD

Buyers firming up for next round of bids for Vocus NZ operation

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Original article by Max Mason
The Australian Financial Review – Page: 15 : 5-Mar-18

Vocus Group appears on target to complete the sale of its New Zealand business by the end of the 2017-18 financial year. Trust Power and 2degrees are known to have made the next stage of the bidding process, but it is understood that other parties have also done so. Vocus has indicated that it is seeking between $A500 million and $A600 million for its New Zealand unit, which generated revenue of $NZ342 million ($A315 million) for the year to 30 June 2017.

CORPORATES
VOCUS GROUP LIMITED – ASX VOC, TRUST POWER LIMITED, 2 DEGREES MOBILE LIMITED, TRILOGY INTERNATIONAL PARTNERS, STUFF.CO.NZ, SPARK NEW ZEALAND LIMITED – ASX SPK, CREDIT SUISSE (AUSTRALIA) LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD

Private equity looks at BHP’s shale assets

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Original article by James Thomson
The Australian Financial Review – Page: 15 & 22 : 26-Feb-18

BHP Billiton’s US shale assets are tipped to fetch at least $US10bn. Peter O’Connor of Shaw & Partners notes that this equates to about eight per cent of BHP’s market capitalisation. Energy companies such as Chevron and Anadarko are likely to consider some of the shale assets, which have also attracted interest from private equity firms. The private equity sector has ramped up its investment in energy assets in recent years.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SHAW AND PARTNERS LIMITED, CHEVRON CORPORATION, ANADARKO PETROLEUM CORPORATION, EOG RESOURCES INCORPORATED, ROYAL DUTCH SHELL PLC, WARBURG PINCUS AND COMPANY, ATX ENERGY PARTNERS, THE BLACKSTONE GROUP LP, EAGLECLAW MIDSTREAM VENTURES, ENERGY TRANSFER PARTNERS LP

BHP on brink of bigger shareholder returns

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Original article by Peter Ker
The Australian Financial Review – Page: 25 : 22-Feb-18

Hayden Bairstow of Macquarie Group says there is potential for BHP Billiton to return an additional $US1.9bn to shareholders in the second half of 2017-18 and at least $US2.4bn in 2018-19. He adds that the latter figure could be higher if BHP sells its US shale assets and opts to distribute the proceeds to investors. However, BHP CEO Andrew Mackenzie has declined to comment on the group’s plans for the proceeds of the exit from shale. Meanwhile, BHP is expected to make a decision on its proposed South Flank iron ore mine within six months.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MACQUARIE GROUP LIMITED – ASX MQG, MORGANS FINANCIAL LIMITED, RIO TINTO LIMITED – ASX RIO, ROYAL DUTCH SHELL PLC

Rio Tinto Grasberg deal may deliver $4.3bn windfall

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Original article by Matt Chambers
The Australian – Page: 20 : 1-Feb-18

Rio Tinto is scheduled to take up a 40 per cent stake in Indonesia’s Grasberg copper and gold mine in 2022. Rio Tinto has a book value of $US1.15bn on its stake in the mine, but Paul Young of Deutsche Bank suggests that its stake could potentially fetch up to $US3.5bn ($A4.3bn) if the Indonesian Government pays market value. Meanwhile, the Centre for Research on Multinational Corporations will shortly release a report on Rio Tinto’s tax payments associated with the Oyu Tolgoi copper and gold mine in Mongolia.

CORPORATES
RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, CENTRE FOR RESEARCH ON MULTINATIONAL CORPORATIONS, OYU TOLGOI LLC, CREDIT SUISSE (AUSTRALIA) LIMITED, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED

ANZ life sale could pave way for buybacks

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Original article by Alice Uribe, Joyce Moullakis, Sarah Thompson
The Australian Financial Review – Page: 17 & 21 : 13-Dec-17

CEO Shayne Elliott concedes that the ANZ Bank’s earnings will be lower following recent asset sales, although he believes that refocusing the group is in the best interests of shareholders. ANZ shares closed 1.1 per cent higher at $A28.82 on 12 December after it announced the sale of its life insurance division to Zurich for $A2.85bn. ANZ had sold the OnePath business to IOOF Holdings earlier in 2017. Elliott has indicated that ANZ could potentially use the proceeds of the latest deal to finance a share buyback.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ZURICH FINANCIAL SERVICES AUSTRALIA LIMITED, ZURICH INSURANCE COMPANY, ONEPATH AUSTRALIA LIMITED, IOOF HOLDINGS LIMITED – ASX IFL, UBS HOLDINGS PTY LTD, SHAW AND PARTNERS LIMITED