INVESTMENTS

Linfox still in hunt for Kidman

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Original article by Samantha Hutchinson
The Australian – Page: 4 : 23-Aug-16

Lindsay Fox’s logistics group Linfox is still interested in acquiring S Kidman & Company. The sale process has been complicated by the decision of the Foreign Investment Review Board to block the sale of the pastoral empire to Chinese buyers. Ray White rural agent Bruce Gunning says government interference has resulted in the politicisation of transactions in the rural property market.

CORPORATES
S KIDMAN AND COMPANY PTY LTD, LINFOX PTY LTD, SHANGHAI PENGXIN GROUP COMPANY LIMITED, GENIUS LINK ASSETS MANAGEMENT LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, RAY WHITE RURAL, VICTOR SMORGON GROUP, CAPITAL HILL ADVISORY PTY LTD

Philippine firm snaps up snacks maker for $600m

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Original article by Sue Mitchell
The Australian Financial Review – Page: 24 : 18-Aug-16

Universal Robina has increased its presence in the snack foods sector with the acquisition of Snack Brands Australia, whose products include Samboy and Kettle potato chips. Philippines-based Universal Robina has indicated that Snack Brands will remain an independent business, while it intends to launch the company’s products in Asia. Snack Brands’ market share in Australia is almost 30 per cent, and it boasts annual sales of $A303m. Universal Robina’s annual sales are about $A3bn.

CORPORATES
SNACK BRANDS AUSTRALIA, UNIVERSAL ROBINA CORPORATION, GRIFFINS FOODS LIMITED, PACIFIC EQUITY PARTNERS PTY LTD, FRITO-LAY INCORPORATED, THE SMITH’S SNACKFOOD COMPANY LIMITED, THE RED ROCK DELI CHIP COMPANY, THE KETTLE COOKED CHIP COMPANY PTY LTD, SAMBOY, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, ARNOTT’S BISCUITS LIMITED, CAMPBELL SOUP COMPANY, THORNEY INVESTMENTS PTY LTD, MONDE NISSIN CORPORATION, MENORA FOODS PTY LTD, NUDIE PTY LTD, BLACK SWAN FOODS, BRIGHT FOOD GROUP COMPANY LIMITED, MANASSEN FOODS AUSTRALIA PTY LTD, WILMAR INTERNATIONAL LIMITED, FIRST PACIFIC COMPANY LIMITED, GOODMAN FIELDER LIMITED, UBS HOLDINGS PTY LTD, INTRINSIC PARTNERS, KING AND WOOD MALLESONS

Beijing to Canberra: expect investments to be scaled back

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Original article by Glenda Korporaal, Andrew White
The Australian – Page: 1 & 2 : 17-Aug-16

China’s embassy in Australia has expressed concern that the Federal Government’s decision to block Chinese bids for Ausgrid and S Kidman & Company may signal a shift toward protectionism in Australia. The embassy says the rulings may deter Chinese companies from investing in Australia. The Government cited national security concerns as the reason for its preliminary decision to block the Ausgrid bids of State Grid and Cheung Kong Infrastructure.

CORPORATES
AUSGRID PTY LTD, S KIDMAN AND COMPANY PTY LTD, STATE GRID CORPORATION OF CHINA, CHEUNG KONG INFRASTRUCTURE HOLDINGS LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, TRANSGRID, ELECTRANET SA, SHANGHAI PENGXIN GROUP COMPANY LIMITED, OZ MINERALS LIMITED – ASX OZL, CHINA MINMETALS CORPORATION

Ausgrid HK bidder asks, ‘why us?’

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Original article by Phillip Coorey, Lisa Murray
The Australian Financial Review – Page: 1 & 4 : 12-Aug-16

Federal Treasurer Scott Morrison’s preliminary decision to block bids by Hong Kong’s Cheung Kong Infrastructure and China’s State Grid for a 50.4 per cent stake in Ausgrid is likely to antagonise the Chinese Government. Morrison justified his decision by citing national security concerns. Former ambassador to China Geoff Raby has spoken about new populism in Australia while Bob Carr, the former premier of New South Wales and now director of the Australia-China Relations Institute, has accused the Federal Government of xenophobia.

CORPORATES
AUSGRID PTY LTD, STATE GRID CORPORATION OF CHINA, CHEUNG KONG INFRASTRUCTURE HOLDINGS LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, NEW SOUTH WALES. THE TREASURY, ONE NATION PARTY, KATTER’S AUSTRALIAN PARTY, PORT OF DARWIN, AUSTRALIAN SECURITY INTELLIGENCE ORGANISATION, LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, UNIVERSITY OF TECHNOLOGY, SYDNEY. AUSTRALIA-CHINA RELATIONS INSTITUTE

Morrison may block China sale

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Original article by Primrose Riordan
The Australian Financial Review – Page: 1 & 6 : 8-Aug-16

The New South Wales Government’s partial privatisation of Ausgrid could be blocked on the grounds of national security. Cheung Kong Infrastructure and China’s State Grid Corporation are expected to pay about $A10bn for a 50.4 per cent stake in the electricity grid, via a 99-year lease. However, the deal must be approved by the Foreign Investment Review Board, and federal Treasurer Scott Morrison says national security will be the main consideration. Several MPs and senators have expressed concern about the proposed sale of Ausgrid.

CORPORATES
AUSGRID PTY LTD, STATE GRID CORPORATION OF CHINA, CHEUNG KONG INFRASTRUCTURE HOLDINGS LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, ONE NATION PTY LTD, NICK XENOPHON TEAM, AUSTRALIAN STRATEGIC POLICY INSTITUTE LIMITED, AUSTRALIAN LABOR PARTY, AUSTRALIAN TAXATION OFFICE, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, TRANSGRID, S KIDMAN AND COMPANY PTY LTD, UNIONS NSW, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET

ADM beats a retreat on GrainCorp

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Original article by Sue Neales, Gretchen Friemann
The Australian – Page: 19 & 23 : 27-Jul-16

There has been a lukewarm response to the offmarket sale of Archer Daniels Midland’s 19.85 per cent stake in Australian-listed GrainCorp. ADM failed to attract interest in the shareholding when it was offered via Lazard on 26 July 2016. The Federal Government blocked ADM’s takeover bid for GrainCorp in late 2013, ruling that the deal was not in the national interest. ADM’s move to divest its stake may have been prompted by the Government’s continued tough stance on foreign ownership of agricultural assets, particularly given the National Party’s increased influence in cabinet following the federal election.

CORPORATES
GRAINCORP LIMITED – ASX GNC, ARCHER DANIELS MIDLAND COMPANY, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF AGRICULTURE AND WATER RESOURCES, SHANGHAI PENGXIN GROUP COMPANY LIMITED, S KIDMAN AND COMPANY PTY LTD, LAZARD PTY LTD, UBS HOLDINGS PTY LTD, GOLDMAN SACHS AUSTRALIA GROUP HOLDINGS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, CBH LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

PC takes aim at rural protectionism

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 21-Jul-16

The Productivity Commission has recommended a number of changes to Australia’s agricultural policy. The commission states in a draft report that protectionist measures should be removed. It says the aim of liberalisation of the agricultural market necessitates the abolition of marketing agencies such as the New South Wales Rice Marketing Board and the Western Australian Potato Marketing Corporation. The Commission also says foreign investment in Australia’s agricultural sector should be encouraged rather than discouraged.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, RICE MARKETING BOARD, POTATO MARKETING CORPORATION OF WESTERN AUSTRALIA, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, NATIONAL PARTY OF AUSTRALIA, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Woodside signs $560m African deal

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Original article by Matt Chambers
The Australian – Page: 22 : 15-Jul-16

Australian-listed Woodside Petroleum will acquire ConocoPhillips’ stake in exploration acreage off the coast of Senegal for $US430m ($A563.4m). The deal includes ConocoPhillips’ 35 per cent stake in the SNE and FAN deepwater oil discoveries. Woodside has estimated that the SNE discovery could potentially yield about 560 million barrels of oil. The listed FAR is a partner in the Senegal joint venture, which is operated by UK-based Cairn Energy.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, CONOCOPHILLIPS, FAR LIMITED – ASX FAR, CAIRN ENERGY PLC, ALLAN GRAY AUSTRALIA PTY LTD, OIL SEARCH LIMITED – ASX OSH, DEUTSCHE BANK AG

‘Something’s gotta give’: rising stocks, bonds and gold sound alert

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Original article by Michael Roddan
The Australian – Page: 19 & 27 : 13-Jul-16

The Australian sharemarket has gained six per cent since reaching its recent low in the wake of Great Britain’s vote to leave the European Union. Meanwhile, the S&P 500 has risen by 16 per cent since February 2016, and it reached a record high in mid-July. Traditional safe haven investment classes are also in strong demand, with the yield on 10-year Australian government bonds remaining close to a record low and the gold price testing its highest level in more than two years.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, MACQUARIE GROUP LIMITED – ASX MQG, PLATINUM ASSET MANAGEMENT LIMITED – ASX PTM, BAKER STEEL CAPITAL MANAGERS LLP, UNITED STATES. FEDERAL RESERVE BOARD, BELL POTTER SECURITIES LIMITED, PERPETUAL LIMITED – ASX PPT, JAPAN. OFFICE OF THE PRIME MINISTER, NIKKEI 225 INDEX

Oil Search sweetener needed for InterOil

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Original article by Angela Macdonald-Smith, Sarah Thompson
The Australian Financial Review – Page: 1 & 11 : 12-Jul-16

ExxonMobil is believed to be the unnamed company that is seeking to trump Oil Search’s $US2.2bn ($A2.9bn) takeover bid for InterOil. The target has commenced negotiations with the as-yet identified suitor, which made an initial approach in late June 2016, and is understood to have made a scrip-based offer that is 10 per cent higher than the Oil Search bid. All three players have exposure to Papua New Guinea’s LNG sector.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, INTEROIL CORPORATION, EXXONMOBIL CORPORATION, CITIGROUP PTY LTD, TOTAL SA