INVESTMENTS

Rio Tinto closes in on $US4b financing deal for Oyu Tolgoi

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 : 14-Dec-15

Rio Tinto has declined to comment on speculation that it could finalise a funding deal for the $US6bn Oyu Tolgoi copper and gold project in Mongolia in mid-December 2015. The resources group had been widely tipped to secure the $US4bn financing deal with up to 15 banks in early 2016. Oyu Tolgoi’s annual output is slated to be 500,000 tonnes of copper and up to 600,000 ounces of gold when production reaches full capacity.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ANGLO AMERICAN PLC, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, GLENCORE PLC

TransGrid bidders cleared

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Original article by Angela Macdonald-Smith, John Kehoe
The Australian Financial Review – Page: 1 & 4 : 23-Nov-15

Australia’s Foreign Investment Review Board has vetted the shortlisted bidders for New South Wales-based TransGrid and given clearance for them to proceed with the acquisition. The four consortiums were shortlisted by the State Government in September 2015, and the successful bidder is expected to be named soon. The Government is tipped to gain around $A9bn from the privatization of TransGrid, which operates the state’s electricity grid and a fibre optic cable network.

CORPORATES
TRANSGRID, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, NEW SOUTH WALES. THE TREASURY, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, STATE GRID CORPORATION OF CHINA, MACQUARIE INFRASTRUCTURE AND REAL ASSETS, QIC LIMITED, IFM INVESTORS PTY LTD, AUSTRALIANSUPER PTY LTD, CANADA PENSION PLAN INVESTMENT BOARD, BOREALIS INFRASTRUCTURE MANAGEMENT INCORPORATED, SPARK INFRASTRUCTURE GROUP – ASX SKI, HASTINGS FUNDS MANAGEMENT LIMITED, PORT OF DARWIN, S KIDMAN AND COMPANY PTY LTD, ARCHER DANIELS MIDLAND COMPANY, GRAINCORP LIMITED – ASX GNC

Agents enter FIRB ‘grey area’

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Original article by Michael Bleby
The Australian Financial Review – Page: 34 : 20-Nov-15

Australian real estate agents must familiarise themselves with new foreign investment laws on residential property which come into effect in December 2015. Property lawyer John Turnbull says non-compliance could result in civil penalties of up to $A45,000 for individuals and $A225,000 for companies. Some confusion may arise from the new rules not being sufficiently clear.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, KAY AND BURTON, THE REAL ESTATE INSTITUTE OF NEW SOUTH WALES, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Aldi favours shock and awe over surprise in SA invasion

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Original article by Sue Mitchell
The Australian Financial Review – Page: 26 : 19-Nov-15

Germany-based Aldi aims to open 16 stores in South Australia during 2016, with the first store slated to open on 3 February. Tom Kierath of Morgan Stanley forecasts that Aldi will boast a market share of about five per cent within 12 months of entering the state’s grocery sector. More than 35 per cent of Australians now shop at an Aldi store in an average four-week period, according to a survey by Roy Morgan Research. Aldi will also expand into Western Australia in 2016.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, ROY MORGAN RESEARCH LIMITED, UBS HOLDINGS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, IGA, METCASH LIMITED – ASX MTS

Chinese rescue Santos

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Original article by Simon Evans, Angela Macdonald-Smith, Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 1 & 12 : 10-Nov-15

China-based Hony Capital will initially acquire a 9.9 per cent stake in Santos for $A500m, although its participation in a $A2.5bn rights issue means the private equity firm will invest about $A700m in the oil and gas group in total. Santos investors will be offered new shares at $A3.85 apiece, compared with the group’s closing price of $A5.91 on 6 November 2015. Meanwhile, Clough CEO Kevin Gallagher will become CEO of Santos in early 2016.

CORPORATES
SANTOS LIMITED – ASX STO, HONY CAPITAL LIMITED, CLOUGH LIMITED, WOODSIDE PETROLEUM LIMITED – ASX WPL, PIZZA EXPRESS, SWISSE WELLNESS PTY LTD, BIOSTIME INTERNATIONAL HOLDINGS LIMITED, SCEPTER PARTNERS, BERNSTEIN AND ASSOCIATES, DEUTSCHE BANK AG, LAZARD PTY LTD, LEGEND GROUP LIMITED, TEMASEK HOLDINGS (PTE) LTD

US expansion and local relief for BlueScope

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Original article by Tim Binsted
The Australian Financial Review – Page: 13 & 18 : 27-Oct-15

Shares in BlueScope Steel closed 10.6 per cent higher at $A4.50 on 26 October 2015, after the group revealed that its Port Kembla steelworks will stay open. BlueScope had previously warned that it would have to close the last blast furnace unless costs were reduced. BlueScope has negotiated a deal with Port Kembla workers which includes a wage freeze and job cuts, while the New South Wales Government will defer payroll taxes for three years. BlueScope will also buy out Cargill’s 50 per cent stake in the North Star mill in the US.

CORPORATES
BLUESCOPE STEEL LIMITED – ASX BSL, CARGILL INCORPORATED, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES

Total, Petronas on lookout for local bargains

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 19-Oct-15

France-based Total’s investments in Australia include stakes in the Gladstone and Ichthys LNG projects. Australian MD Petter Undem says Total is interested in acquisitions in the local oil and gas sector, including a desire to become the operator of an LNG project rather than just a minority stakeholder. Malaysia-based Petronas – which also has a stake in the Gladstone project – has indicated that it too is keen to pursue acquisitions in Australia.

CORPORATES
TOTAL SA, TOTAL E&P AUSTRALIA, PETROLIAM NASIONAL BERHAD, SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, INPEX CORPORATION, ICHTHYS LNG PTY LTD, INTEROIL CORPORATION, CENTRAL PETROLEUM LIMITED – ASX CTP, PROGRESS ENERGY INCORPORATED

Domino’s still hungry after gobbling rival

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Original article by Sue Mitchell
The Australian Financial Review – Page: 29 : 15-Oct-15

Australian-listed Domino’s Pizza Enterprises will have 330 outlets in France following the Stg35m ($A55m) acquisition of Pizza Sprint. CEO Don Meij says the group is keen to pursue further international acquisitions, as part of an aggressive expansion strategy that aims to double its store numbers worldwide over the next decade. Shares in Domino’s closed 5.4 per cent higher at $A41.95 on 14 October 2015.

CORPORATES
DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, PIZZA SPRINT, FOOD COURT FINANCE SRL, DOMINO’S PIZZA JAPAN INCORPORATED, PLATYPUS ASSET MANAGEMENT PTY LTD, BAILLIEU HOLST LIMITED, BAIN CAPITAL LLC

Bauer takes a Nova approach to sector entry

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Original article by Dominic White, Max Mason
The Australian Financial Review – Page: 26 : 12-Oct-15

Germany-based Bauer Media Group is said to still be keen to acquire commercial radio stations in Australia, after being rebuffed by Nova Entertainment in 2014. Bauer is believed to have made an indicative offer of about $A450m to acquire Nova, which is owned by Lachlan Murdoch. Bauer paid $A525m for ACP in 2012, and has since discontinued a number of print magazines.

CORPORATES
BAUER MEDIA KG, NOVA ENTERTAINMENT PTY LTD, ILLYRIA PTY LTD, ACP MAGAZINES LIMITED, DAILY MAIL AND GENERAL TRUST PLC, TEN NETWORK HOLDINGS LIMITED – ASX TEN, FOXTEL MANAGEMENT PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN COMMUNICATIONS AND MEDIA AUTHORITY, SBS DISCOVERY RADIO, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC

ANZ signals push into NSW home lending

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Original article by Jonathan Shapiro, James Eyers
The Australian Financial Review – Page: 1 & 11 : 12-Oct-15

Increasing its share of the home loan market in New South Wales will be a priority for the ANZ Bank under new CEO Shayne Elliott, who will succeed Mike Smith in early 2016. Elliott also says the growing shift to the use of mobile devices for banking represents both a challenge and an opportunity for the banking sector in terms of engaging with customers. Meanwhile, ANZ chairman David Gonski says the group will review its Asian strategy under Elliott.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, PT PANIN BANK, AMBANK BERHAD, BANK OF TIANJIN COMPANY LIMITED, SHANGHAI RURAL COMMERCIAL BANK, MACQUARIE GROUP LIMITED – ASX MQG, ESANDA FINANCE CORPORATION LIMITED