INVESTMENTS

Private equity bosses tip rosier times ahead

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Original article by Sally Rose, Joyce Moullakis
The Australian Financial Review – Page: 26 : 5-Mar-15

Pacific Equity Partners (PEP) gained $A4.5bn from divesting businesses via IPOs and trade sales in 2013 and 2014. International buyers accounted for most of the firm’s trade sales, and Nathanial Thomson of Crescent Capital expects the trend for offshore buyers to purchase Australian businesses to continue. Meanwhile, PEP MD Tim Sims is upbeat about the outlook for Australia’s business sector, and says offshore investors should not be deterred by data showing that the economy is slowing

CORPORATES
PACIFIC EQUITY PARTNERS PTY LTD, CRESCENT CAPITAL PARTNERS LIMITED, XTRALIS PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA, PITCHER PARTNERS CORPORATE ADVISORY PTY LTD, KING AND WOOD MALLESONS

Chinese undeterred by new investment rules

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Original article by Tim Binsted
The Australian Financial Review – Page: 19 : 4-Mar-15

Geoff Raby & Associates founder Geoff Raby says his firm has received an increase in enquiries from prospective Chinese investors in Australia’s agricultural sector. This includes sectors such as dairy, meat and wheat, and includes both farmland and processing facilities. The Australian Government has proposed new regulations for foreign investors in assets such as farms and housing, including application fees that start from $A5,000

CORPORATES
GEOFF RABY AND ASSOCIATES, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIAN BUREAU OF AGRICULTURAL AND RESOURCE ECONOMICS AND SCIENCES, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, FORTESCUE METALS GROUP LIMITED – ASX FMG, CBH LIMITED, CO-OPERATIVE BULK HANDLING LIMITED

Orica launches $400m share buyback

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Original article by Tim Binsted
The Australian Financial Review – Page: 17 : 3-Mar-15

Australian-listed Orica has revealed plans for an on-market share buyback from mid-March 2016. The explosives group intends to repurchase up to $A400m worth of shares over the next 12 months, following the sale of its chemicals division to Blackstone for $A750m. The private equity firm has announced that the business will be known as Ixom. It boasts EBIT of around $A110m and revenue of $A1.2bn

CORPORATES
ORICA LIMITED – ASX ORI, THE BLACKSTONE GROUP LP, IXOM, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, CITIGROUP PTY LTD, LAZARD PTY LTD, FONTERRA CO-OPERATIVE GROUP LIMITED, NUFARM LIMITED – ASX NUF, CALTEX AUSTRALIA LIMITED – ASX CTX, SYDNEY WATER CORPORATION, BLUESCOPE STEEL LIMITED – ASX BSL

Outrage over PM’s property hit

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Original article by Phillip Coorey, Matthew Cranston
The Australian Financial Review – Page: 1 & 8 : 26-Feb-15

The Australian Government’s proposals to crack down on foreign investors in the residential property market has the support of Master Builders Australia CEO Wilhelm Harnisch. However, buyers advocate David Morrell says the proposed application fees should be higher, although the Real Estate Institute of Australia believes that the fees are too high. The Government plans to introduce a fee of up to one per cent of the value of new or established residential properties bought by foreign investors

CORPORATES
MASTER BUILDERS AUSTRALIA INCORPORATED, THE REAL ESTATE INSTITUTE OF AUSTRALIA LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, RAY WHITE REAL ESTATE, AUSTRALIAN TAXATION OFFICE, NEW SOUTH WALES. THE TREASURY, PROPERTY COUNCIL OF AUSTRALIA LIMITED, CBRE PTY LTD

Xero soars and eyes US listing

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Original article by Paul Smith
The Australian Financial Review – Page: 23 & 28 : 26-Feb-15

Australian-listed online accounting software developer Xero has received a $NZ132.9 million ($A127.6 million) investment from US firm Accel Partners. Xero CEO Rod Drury said the company will seek a US listing at the end of 2015. Its shares rose sharply on 25 February, closing 27.8 per cent higher at $A22.60

CORPORATES
XERO LIMITED – ASX XRO, ACCEL PARTNERS, ATLASSIAN SOFTWARE SYSTEMS PTY LTD, FACEBOOK INCORPORATED, MATRIX CAPITAL PTY LTD

Toll rivals say JP sale poses sovereign risk

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 13 & 18 : 23-Feb-15

One Global Logistics MD James Sparke has warned of potential sovereign risk issues associated with government-owned Japan Post’s takeover bid for Toll Holdings. Meanwhile, Toll CEO Brian Kruger does not expect any of the group’s customers to enforce the "change of control" provisions of their contracts if the $A6.5bn takeover bid proceeds. The deal requires approval from the Foreign Investment Review Board

CORPORATES
TOLL HOLDINGS LIMITED – ASX TOL, JAPAN POST, ONE GLOBAL LOGISTICS PTY LTD, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIAN DEFENCE FORCE, UNITED STATES NAVY, CHEVRON CORPORATION, ORICA LIMITED – ASX ORI, BARRICK GOLD CORPORATION, WOOLWORTHS LIMITED – ASX WOW, NIKE INCORPORATED, OFFICE DEPOT INCORPORATED, FISHER AND PAYKEL APPLIANCES HOLDINGS LIMITED, AUSTRALIA. DEPT OF THE TREASURY, ARCHER DANIELS MIDLAND COMPANY, GRAINCORP LIMITED – ASX GNC, HUAWEI TECHNOLOGIES COMPANY LIMITED, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA POST, STAR TRACK EXPRESS PTY LTD, LINCOLN INDICATORS PTY LTD

Japan Post pays up big for Toll

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Original article by Jenny Wiggins, Sarah Thompson
The Australian Financial Review – Page: 1 & 14 : 19-Feb-15

Directors of Australian-listed logistics group Toll Holdings and analysts have backed a takeover bid by Japan Post. The offer of $A9.04 per share values the deal at $A6.5bn, and data from Dealogic shows that it will be Japan’s biggest investment in Australia. Japan Post will be the world’s fifth-largest logistics group if the deal proceeds. Toll shares closed 47 per cent higher at $A8.95 on 18 February 2015. Toll expects the deal to be approved by regulators

CORPORATES
TOLL HOLDINGS LIMITED – ASX TOL, JAPAN POST, DEALOGIC (AUSTRALIA) PTY LTD, CIMB SECURITIES INTERNATIONAL (AUSTRALIA) PTY LTD, DEUTSCHE POST AG, UNITED STATES POSTAL SERVICE, UNITED PARCEL SERVICE INCORPORATED, FEDERAL EXPRESS CORPORATION, DB SCHENKER AG, LA POSTE, KUEHNE & NAGEL INTERNATIONAL AG, JAPAN OIL GAS AND METALS NATIONAL CORPORATION, CHEVRON CORPORATION, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

China Capital realises Daydream

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Original article by Matthew Cranston
The Australian Financial Review – Page: 38 : 17-Feb-15

China Capital Investment Group has paid around $A30m for Daydream Island in Queensland. The Chinese company intends to expand and upgrade the resort, which was previously owned by businessman Vaughan Bullivant. The deal represents China Capital Investment Group’s first foray into the Australian market, although other Chinese groups have been active in the tourism sector

CORPORATES
DAYDREAM ISLAND PTY LTD, CHINA CAPITAL INVESTMENT GROUP, LINDEMAN ISLAND PTY LTD, WHITE HORSE, CAPRICORN TOURISM, CHINA-AUSTRALIA ENTREPRENEURS ASSOCIATION INCORPORATED, AUSTRALIAN LABOR PARTY

Goodman gets big tick

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Original article by Sue Mitchell, Sarah Thompson
The Australian Financial Review – Page: 19 : 17-Feb-15

Goodman Fielder shareholders will vote on a proposed $A1.3bn takeover bid by Wilmar International and First Pacific on 26 February 2015. Australia’s Foreign Investment Review Board approved the deal in late 2014, and the Chinese Government gave the green light on 16 February. The offer of $A0.675 per share also requires approval in New Zealand. Hedge funds bought about 160 million of the target’s shares in early February, and stand to make a healthy profit from the transaction

CORPORATES
GOODMAN FIELDER LIMITED – ASX GFF, WILMAR INTERNATIONAL LIMITED, FIRST PACIFIC COMPANY LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, CHINA. MINISTRY OF COMMERCE, NEW ZEALAND. OVERSEAS INVESTMENT COMMISSION, ELLERSTON CAPITAL PTY LTD, DEUTSCHE BANK AG, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION

Foreign property buyers face stiff fees amid crackdown

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Original article by Joanna Heath
The Australian Financial Review – Page: 3 : 10-Feb-15

The Treasury is investigating a number of cases of suspected illegal residential property acquisitions in Australia. A parliamentary inquiry into the matter issued a report in November 2014 which contains 12 recommendations. The committee recommended the introduction of an administrative fee for foreign buyers of between $A500 and $A1,500 to fund the compliance work of the Foreign Investment Review Board and the Treasury

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, AUSTRALIAN LABOR PARTY