INVESTMENTS

China scopes local iron ore

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Original article by Tess Ingram
The Australian Financial Review – Page: 11 : 2-Jun-15

The iron ore price is trading at about $US63 per tonne, having shed nearly 50 per cent in the last year. Adam Handley of law firm Minter Ellison notes that the sharp fall in the price of the steel input has prompted Chinese companies to consider mergers and acquisitions in Australia, as well as debt and equity deals with embattled producers. He adds that Chinese investors have become more willing to pursue hostile takeovers.

CORPORATES
MINTER ELLISON, FORTESCUE METALS GROUP LIMITED – ASX FMG, CITIC LIMITED, SHANGHAI BAOSTEEL GROUP CORPORATION, RECORD POINT PTY LTD, SINO IRON PTY LTD, CITIGROUP PTY LTD, BC IRON LIMITED – ASX BCI, GRANGE RESOURCES LIMITED – ASX GRR, ARRIUM LIMITED – ASX ARI, CLIFFS NATURAL RESOURCES INCORPORATED, GINDALBIE METALS LIMITED – ASX GBG, MOUNT GIBSON IRON LIMITED – ASX MGX, MINERAL RESOURCES LIMITED – ASX MIN

Echo chief on edge over delayed Genting decision

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Original article by Perry Williams
The Australian Financial Review – Page: 17 : 1-Jun-15

The New South Wales Independent Liquor & Gaming Authority has yet to make a decision on an application by Malaysia-based Genting to lift its stake in Echo Entertainment Group. Genting has a 6.6 per cent stake in the casino operator, but it sought approval in 2012 to increase its stake to a maximum of 25 per cent. At present, shareholdings are limited to 10 per cent of Echo’s share register.

CORPORATES
ECHO ENTERTAINMENT GROUP LIMITED – ASX EGP, GENTING BERHAD, NEW SOUTH WALES. INDEPENDENT LIQUOR AND GAMING AUTHORITY, THE STAR, CROWN RESORTS LIMITED – ASX CWN, RESORTS WORLD BERHAD

It’s ‘inevitable’ Fortescue will need a Chinese equity partner

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Original article by Perry Williams
The Australian Financial Review – Page: 17 & 22 : 28-May-15

The China Iron & Steel Association’s deputy secretary Li Xinchuang believes that Fortescue Metals Group will eventually need an equity partner in order to be globally competitive. He argues that a Chinese partner would make sense for Fortescue, and notes that the iron ore producer’s high level of debt could become a problem unless it takes on an equity partner. Fortescue CEO Nev Power has stressed several times that an equity partner is not on the group’s agenda.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, CHINA IRON AND STEEL INDUSTRY ASSOCIATION, CHINA METALLURGICAL INDUSTRY PLANNING ASSOCIATION, SHANGHAI BAOSTEEL GROUP CORPORATION, CITIC LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, VALE SA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Just Eat paid ‘crazy’ amount for Menulog, say Delivery Hero

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Original article by Yolanda Redrup
The Australian Financial Review – Page: 18 : 25-May-15

Delivery Hero CEO Clive Thorpe believes that about $A400m would have been a more appropriate sale price for Australian online food delivery group Menulog. UK-based Just Eat has agreed to pay $A855m for Menulog, which had 6.3 million orders in the year to March 2015. In contrast, Delivery Hero recently paid $US589m ($A752m) for Turkey-based Yemeksepeti, whose monthly orders exceed three million.

CORPORATES
MENULOG PTY LTD, JUST EAT LIMITED, DELIVERY HERO HOLDING GMBH, YEMEKSEPETI, ORIENTAL TEA HOUSE, DAVID’S, EAT NOW SERVICES PTY LTD, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

QIC strikes $1 billion infrastructure deal

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 21 : 21-May-15

QIC will invest nearly $A1bn in infrastructure assets on behalf of the California Public Employees Retirement System. Australia and New Zealand will be the main focus of the investment portfolio, including transport, energy and utility assets, although QIC will also seek assets in Asian countries. The US pension fund boasts some $A300bn worth of assets, while QIC’s infrastructure portfolio is worth $A5.8bn.

CORPORATES
QIC LIMITED, CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, AMP CAPITAL INVESTORS LIMITED, OHIO STATE UNIVERSITY, JP MORGAN ASSET MANAGEMENT INCORPORATED, QUEENSLAND MOTORWAYS LIMITED, TRANSURBAN GROUP LIMITED – ASX TCL, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, EPIC ENERGY PTY LTD, PORT OF BRISBANE, BRISBANE AIRPORT, WESTLINK MOTORWAY LIMITED

Santos seeks bigger chunk of LNG pie

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 & 20 : 18-May-15

Australian-listed Santos may acquire a stake in Papua New Guinea’s P’nyang gas field, which would be used to expand the PNG LNG venture in which the group is already a partner. A final investment decision on the proposed expansion will be made in 2017. Meanwhile, Santos and its partners in a Malaysian oil project have had encouraging results from a drilling program. Santo’s Caldita-Barossa venture is also in the running to supply gas to the Darwin LNG plant if a proposed expansion of the facility proceeds.

CORPORATES
SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH, EXXONMOBIL CORPORATION, JX NIPPON OIL AND ENERGY CORPORATION, CONOCOPHILLIPS, SK GROUP, WOODSIDE PETROLEUM LIMITED – ASX WPL, ROYAL DUTCH SHELL PLC, CHEVRON CORPORATION, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, HESS CORPORATION, AWE LIMITED – ASX AWE

Toll rolls into Japan Post $6.5b takeover deal

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Original article by Jenny Wiggins, John Stensholt, James Thomson
The Australian Financial Review – Page: 23 & 28 : 14-May-15

Some 95.9 per cent of Toll Holdings shareholders endorsed Japan Post’s takeover bid on 13 May 2015. Former CEO Paul Little believes that Toll will benefit from the $A6.5bn deal. Japan Post has committed to retaining the Toll brand, which was established in 1888, and plans to utilise Toll’s expertise to expand its parcels business globally. Toll shares will cease trading on 14 May.

CORPORATES
TOLL HOLDINGS LIMITED – ASX TOL, JAPAN POST, AUSTRALIA POST, SINGAPORE. MINISTRY OF DEFENCE, TRANSPORT INTELLIGENCE LIMITED, FEDERAL EXPRESS CORPORATION, TNT EXPRESS WORLDWIDE, BONGO INTERNATIONAL

Toll to drop off ASX after Japan Post vote

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 15 : 11-May-15

Toll Holdings shareholders are widely tipped to vote in favour of a $A6.5bn takeover offer from Japan Post on 13 May 2015. The deal, which requires the support of 75 per cent of shareholders, has received regulatory approval in Australia, Japan and New Zealand. Toll will be delisted if shareholders approve the deal.

CORPORATES
TOLL HOLDINGS LIMITED – ASX TOL, JAPAN POST, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, NEW ZEALAND. OVERSEAS INVESTMENT COMMISSION, JAPAN FAIR TRADE COMMISSION, FEDERAL EXPRESS CORPORATION, TNT EXPRESS WORLDWIDE, AUSTRALIA POST, OFFICEWORKS SUPERSTORES PTY LTD, MAILMAN GROUP, GRANT SAMUEL AND ASSOCIATES PTY LTD

‘No way’ to a Glencore-Rio merger: Hockey

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 & 22 : 9-Apr-15

The prohibition on Glencore executives commenting on a bid for Rio Tinto lapsed on 8 April 2015, six months after Rio rejected a takeover approach. Glencore is tipped to make another bid for Rio, but Australian Treasurer Joe Hockey is believed to have explicitly ruled out Federal Government approval for such a deal. His comments are said to have been made at a private meeting with business leaders and mining industry executives in late March

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, AUSTRALIA. DEPT OF THE TREASURY, MINERALS COUNCIL OF AUSTRALIA, BUSINESS COUNCIL OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, ARCHER DANIELS MIDLAND COMPANY, GRAINCORP LIMITED – ASX GNC, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, ALUMINIUM CORPORATION OF CHINA LIMITED

FIRB clears China Communications acquisition of John Holland

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 20 : 9-Apr-15

Leighton Holdings’ sale of defence contractor John Holland to China Communications Construction Company has been cleared by the Foreign Investment Review Board. Federal Treasury Joe Hockey says the $A1bn deal does not raise any national interest concerns. John Holland is estimated to have undertaken some $A470m worth of construction contracts for the Department of Defence in 2014

CORPORATES
LEIGHTON HOLDINGS LIMITED – ASX LEI, JOHN HOLLAND PTY LTD, CHINA COMMUNICATIONS CONSTRUCTION GROUP LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF DEFENCE, THE STOCK EXCHANGE OF HONG KONG LIMITED, WORLD BANK, CHINA ROAD AND BRIDGE CORPORATION, AUSTRALIAN SECURITY INTELLIGENCE ORGANISATION