MERGERS AND ACQUISITIONS – AUSTRALIA

Japan tipped to lead inbound M&A

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Original article by Lucas Baird
The Australian Financial Review – Page: 14 : 6-Jan-20

Alex Cartel of Deutsche Bank expects Japanese companies to pursue more takeover deals in Australia during 2020, following bids for Carlton & United Breweries and DuluxGroup in 2019. He notes that Japan has replaced China as a key driver of inbound mergers and acquisitions deals in the last several years. Simon Ranson of JP Morgan adds that offshore private equity firms are cashed up, noting that factors such as the low Australian dollar will make the nation attractive to them.

CORPORATES
DEUTSCHE BANK AG, JP MORGAN AUSTRALIA LIMITED, CARLTON AND UNITED BREWERIES, DULUXGROUP LIMITED, ASAHI GROUP, NIPPON PAINT, HERBERT SMITH FREEHILLS PTY LTD, BELLAMY’S AUSTRALIA LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Glencore considered Fortescue takeover in 2016, but Forrest wasn’t keen

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Original article by Perry Williams
The Australian – Page: 13 & 15 : 6-Jan-20

Sources have indicated that Anglo-Swiss mining giant Glencore held internal talks regarding a potential bid for Fortescue Metals Group in 2016. It is believed that Glencore looked at a possible approach to Fortescue in order to diversify into iron ore and to capitalise on a sharp fall in the price of the steel input at the time. Glencore has declined to comment, while Fortescue CEO Elizabeth Gaines says the company is focused on growing its business. Glencore had previously sought to expand into iron ore in 2014, via a $190bn merger proposal with Rio Tinto.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, GLENCORE PLC, RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, COAL AND ALLIED INDUSTRIES LIMITED

Caltex dusts off Ampol brand

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Original article by Nick Evans
The Australian – Page: 13 : 24-Dec-19

Caltex Australia will relaunch the Ampol fuel brand after US-based Chevron Corporation advised that its licence to use the Caltex brand will be terminated. Caltex will have three years to complete the rebranding of its petrol stations, with the process slated to begin within six months. The Ampol brand was established in 1936, but it was phased out when the company merged with Caltex in 1995. Chevron recently acquired fuel retailer Puma Energy Australia for $425m.

CORPORATES
CALTEX AUSTRALIA LIMITED – ASX CTX, CHEVRON CORPORATION, AMPOL LIMITED, PUMA ENERGY (AUSTRALIA) HOLDINGS PTY LTD

Village Roadshow screened rival offer before Pacific Equity Partners deal

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Original article by Kylar Loussikian, Jennifer Duke
The Sydney Morning Herald – Page: Online : 24-Dec-19

Morningstar estimates that there is a 75 per cent chance that Village Roadshow Limited shareholders will accept a takeover proposal from Pacific Equity Partners. Meanwhile, it has been revealed that Village Roadshow Corporation’s owners considered a rival offer from BGH Capital before agreeing to accept PEP’s offer for its stake in VRL. VRC is owned by Robert Kirby, John Kirby and VRL CEO Graham Burke.

CORPORATES
VILLAGE ROADSHOW LIMITED – ASX VRL, VILLAGE ROADSHOW CORPORATION LIMITED, PACIFIC EQUITY PARTNERS PTY LTD, BGH CAPITAL PTY LTD, MORNINGSTAR PTY LTD

Private equity raids the Village

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Original article by Ben Wilmot, Bridget Carter
The Australian – Page: 15 & 21 : 20-Dec-19

Pacific Equity Partners has made a conditional, non-binding and indicative takeover offer for cinemas and theme parks group Village Roadshow. The offer of $3.90 per share values Village at about $1bn, or $761.2m when its debt is excluded. Shares in Village closed $0.69 higher at $3.89 on 19 December, in response to the private equity firm’s scheme of arrangement proposal.

CORPORATES
VILLAGE ROADSHOW LIMITED – ASX VRL, PACIFIC EQUITY PARTNERS PTY LTD, VILLAGE ROADSHOW CORPORATION LIMITED, MORNINGSTAR PTY LTD

Seven grabs Prime stake as takeover tanks

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Original article by Lilly Vitorovich
The Australian – Page: 15 & 21 : 20-Dec-19

Seven West Media has become the biggest shareholder in Prime Media Group, after the latter’s shareholders rejected a merger proposal. Some 53.53 per cent of votes cast at Prime’s scheme meeting opposed the deal; chairman John Hartigan has described it as a "disappointing outcome" for both the majority of Prime’s shareholders and the regional TV sector. Meanwhile Seven has issued 30 million of its shares to Spheria Asset Management in return for 54.6 million shares in Prime, giving Seven a 14.9 per cent stake in its regional affiliate.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, PRIME MEDIA GROUP LIMITED – ASX PRT, SPHERIA ASSET MANAGEMENT PTY LTD, WIN CORPORATION PTY LTD, AUSTRALIAN COMMUNITY MEDIA, BAUER MEDIA AUSTRALIA PTY LTD, PACIFIC MAGAZINES PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Northern Star shines in $1.2bn Super Pit

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 18-Dec-19

Northern Star Resources will finance the acquisition of Newmont Goldcorp’s 50 per cent stake in Kalgoorlie’s Super Pit gold mine via a $765m share placement, a $50m share purchase plan and a $480m debt facility. Executive chairman Bill Beament says Northern Star hopes to bring forward an underground expansion of the mine, subject to approval from new joint venture partner Saracen Mineral Holdings. The latter recently acquired Barrick Gold’s stake in the Super Pit.

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, NEWMONT GOLDCORP CORPORATION, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, BARRICK GOLD CORPORATION

Primed: Harto poised to sign off

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Original article by Caroline Overington
The Australian – Page: 13 & 18 : 18-Dec-19

Prime Media Group’s chairman John Hartigan expects shareholders to reject Seven West Media’s takeover offer for its regional affiliate on 18 December. He says the deal is likely to be blocked by major shareholders Bruce Gordon and Anthony Catalano, noting that they have a different agenda to other Prime investors. Hartigan supports the merger with Seven, arguing that cross-media ownership rules governing regional broadcasters are outdated and do not reflect the rise of streaming services. Hartigan has downplayed speculation that he will step down after the vote.

CORPORATES
PRIME MEDIA GROUP LIMITED – ASX PRT, SEVEN WEST MEDIA LIMITED – ASX SWM

Woodside’s Apache bid may kill Browse

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Original article by Paul Garvey
The Australian – Page: 20 : 10-Dec-14

Insiders claim that Australian-listed Woodside Petroleum has made a pitch to US partner Apache ­Energy, to acquire the latter’s 13% stake in the Wheatstone LNG development offshore Western Australia. The likely price tag is $US1.8bn ($A2.17bn), and other potential suitors appear to have abandoned their bids due to the recent decline of the crude oil price. If Woodside goes ahead, it may no longer want to pursue its stalled Browse LNG project. A floating LNG production platform has been proposed for it by Woodside and allies Royal Dutch Shell and BP

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, APACHE ENERGY LIMITED, ROYAL DUTCH SHELL PLC, BP PLC, TEMASEK HOLDINGS (PTE) LTD, HARBOUR ENERGY LIMITED, NOBLE GROUP LIMITED, EIG GLOBAL ENERGY PARTNERS, PAVILION ENERGY PTE LTD, ORBIS AUSTRALIA PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG

Hazy outlook for Prime as moguls hedge their bets

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Original article by Max Mason
The Australian Financial Review – Page: 17 : 16-Dec-19

Prime Media Group shareholders will vote on a proposed takeover by Seven West Media on 19 December. Prime’s major shareholders include Australian Community Media’s Antony Catalano and WIN Corporation owner Bruce Gordon, whose combined stake would be sufficient to block the deal. They have both expressed interest in buying Prime, but ACM would have to sell some of its regional newspapers, while any bid by Gordon would be dependent on further changes to media ownership rules. Communications Minister Paul Fletcher has indicated that this is unlikely in the near-term.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, PRIME MEDIA GROUP LIMITED – ASX PRT, AUSTRALIAN COMMUNITY MEDIA, WIN CORPORATION PTY LTD, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC