Capital raising rush far from over

Original article by Joyce Moullakis
The Australian – Page: 13 & 19 : 1-Jul-20

Data from Refinitiv shows that Australian-listed companies raised $US14.9bn ($21.8bn) via the issuance of new shares in the June quarter, as they sought to boost their balance sheets in response to the coronavirus pandemic. This is the highest quarterly total since late 2010, while some $US18.8bn worth of new shares were issued in the first half of calendar 2020. Fund managers generally expect the capital raisings momentum to be maintained in the second half. Meanwhile, the total value of mergers and acquisitions fell to $US24.9bn in the first half of 2020, compared with $US48.2bn for the first half of 2019.

CORPORATES
REFINITIV AUSTRALIA PTY LTD

Media Super poised for $62b Cbus link

Original article by Joanna Mather, Michael Roddan
The Australian Financial Review – Page: 3 : 25-Jun-20

Media Super chairman Gerard Noonan has confirmed that the industry superannuation fund is in the "very early stages" of talks regarding a merger with Cbus. He stresses that Media Super is likely to retain its own branding if the deal proceeds. The fund short-listed Cbus and AustralianSuper as potential merger candidates following a tender process. Media Super has about 75,000 members and some $6bn worth of assets under management. Data from the Australian Prudential Regulation Authority shows that Media Super has lost an average of six per cent of its members annually over the past three years.

CORPORATES
MEDIA SUPER LIMITED, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, AUSTRALIANSUPER PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

BHP buy bolsters nickel operation

Original article by Nick Evans
The Australian – Page: 15 : 22-Jun-20

BHP is believed to have paid Norilsk Nickel almost $US30m for the Honeymoon Well nickel project in Western Australia. The deposit is estimated to contain about 1.2 million tonnes of nickel; the deal demonstrates BHP’s commitment to the commodity and its Nickel West business. BHP will also shortly resume underground mining at its Leinster project. The nickel price has rebounded from a low of around $US11,000 a tonne in March to nearly $US13,000 a tonne.

CORPORATES
BHP GROUP LIMITED – ASX BHP, NORILSK NICKEL

Aeris adds gold to copper with $125m Cracow buy

Original article by Brad Thompson
The Australian Financial Review – Page: 24 : 5-Jun-20

Copper miner Aeris Resources has confirmed a $125 million deal to acquire Evolution Mining’s Cracow gold mine in Queensland. The Cracow mine is forecast to produce between 70,000 and 75,000 ounces of gold in fiscal 2021, while Aeris predicts that Cracow will yield net mine free cash flow of more than $100 million over the first two years of its ownership at the current price of gold. Aeris executive chairman Andre Labuschagne has described the deal as "transformational" for the company. Evolution’s executive chairman Jake Klein says it has no plans to sell other gold mines.

CORPORATES
AERIS RESOURCES LIMITED – ASX AIS, EVOLUTION MINING LIMITED – ASX EVN

Super sector should shrink 80pc: report

Original article by James Thomson
The Australian Financial Review – Page: 19 : 25-May-20

Management consulting firm Right Lane contends that a major rationalisation of Australia’s superannuation sector is necessary. Associate principal Abhishek Chhikara suggests that there is scope for 3-5 large "generalist" funds and 7-10 niche funds that are focused on specific industries or types of super products. Right Lane estimates that a super fund needs a minimum of 500,000 active members in order to operate efficiently, and ideally they should have between one and two million active members. The firm expects the pandemic to increase the pressure on smaller funds.

CORPORATES
RIGHT LANE CONSULTING

BGH bid to take Village Roadshow private

Original article by Elouise Fowler
The Australian Financial Review – Page: 13 : 19-May-20

Shares in theme parks and cinemas operator Village Roadshow rose 17 per cent to $2.09 on 18 May after it advised that private equity firm BGH Capital is in discussions to acquire it for up to $468.5 million. BGH’s due diligence on Village is expected to take four weeks, and its bid is subject to a number of conditions, including obtaining Foreign Investment Review Board approval and securing debt financing. As well as advising of BGH’s offer, Village provided an trading update which noted that it only had $58 million in cash at the end of April.

CORPORATES
VILLAGE ROADSHOW LIMITED – ASX VRL, BGH CAPITAL PTY LTD

News Corp in talks to sell off regional papers

Original article by Leo Shanahan
The Australian – Page: 19 : 11-May-20

Australian Community Media may be poised to acquire some or all of News Corp Australia’s regional and community newspapers. ACM already owns a large portfolio of regional newspapers, and it is said to have been holding talks with News Corp about a deal for some time. Both companies have put the print editions of some mastheads on hold due to the coronavirus pandemic. News Corp is expected to retain some regional mastheads, including the ‘NT News’ if a deal proceeds.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, AUSTRALIAN COMMUNITY MEDIA

Bauer sacks 60 Pacific Magazines staff

Original article by Lilly Vitorovich
The Australian – Page: Online : 5-May-20

Bauer Media is believed to have retrenched employees at Pacific Magazines and put the print editions of some titles on hold just days after taking control of the former Seven West Media business. Some 60 jobs at Pacific Magazines are said to have been cut, following Bauer’s recent move to stand down or lay off about 140 of its own employees. ‘InStyle’, ‘Men’s Health’ and ‘Women’s Health’ are among the Pacific Magazines titles that have been affected.

CORPORATES
BAUER MEDIA AUSTRALIA PTY LTD, BAUER MEDIA KG, PACIFIC MAGAZINES PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM

Mag queen tips Bauer will axe Pacific titles

Original article by Lilly Vitorovich
The Australian – Page: 19 : 4-May-20

Bauer Media completed a $40m deal to acquire Seven West Media’s Pacific Magazines division on 1 May. Magazine industry veteran Deborah Thomas expects Bauer to suspend the print editions of some Pacific titles due to the coronavirus-induced downturn in the advertising market. Four of the print editions of Bauer’s own titles were recently put on hold, and some industry executives doubt that several of them will resume publication. Bauer has also stood down or laid off up to 140 employees in Australia, while its New Zealand operations were shut down in April.

CORPORATES
BAUER MEDIA AUSTRALIA PTY LTD, PACIFIC MAGAZINES PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM, BAUER MEDIA KG, BAUER MEDIA (NZ) LIMITED

Virgin bidders set to team up after talks

Original article by Patrick Durkin, Liam Walsh, Jonathan Shapiro
The Australian Financial Review – Page: 17 : 4-May-20

Virgin Australia’s administrators Deloitte stated on 30 April that 20 parties had expressed an interest in buying the failed airline. However, that number could fall to around a dozen or less, following recent talks between potential bidders about the possibility of joining forces. Private equity firm BGH is said to be in discussion with AustralianSuper about a possible deal, with Singapore’s state owned investment fund Temasek also said to be involved in their talks. Other potential bidders include US private equity fund Indigo Partners and mining magnate Andrew Forrest, with Forrest possibly teaming up with David Baxby, the former aide of Virgin Group founder Richard Branson, as Baxby and Forrest have close ties.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, DELOITTE TOUCHE TOHMATSU LIMITED, BGH CAPITAL PTY LTD, AUSTRALIANSUPER PTY LTD, INDIGO PARTNERS LLC, TEMASEK HOLDINGS (PTE) LTD, VIRGIN GROUP LIMITED