MERGERS AND ACQUISITIONS – AUSTRALIA

Radio deal not over till the fat lady sings

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Original article by Lilly Vitorovich
The Australian – Page: 19 : 24-Sep-19

Wilson Asset Management holds a stake of about 2.91 per cent in Macquarie Media. WAM chairman Geoff Wilson believes that Nine Entertainment’s offer of $1.46 per share undervalues the takeover target, and that Macquarie’s independent board committee should seek a better deal. He contends that the committee must act in the best interests of minority shareholders rather than merely large investors. Wilson believes that a higher offer for Macquarie may yet emerge before Nine’s bid closes on 14 October.

CORPORATES
MACQUARIE MEDIA LIMITED – ASX MRN, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, WILSON ASSET MANAGEMENT

$80m deal: Singleton sells out of radio after 60-year career

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Original article by Zoe Samios
The Australian – Page: 1 : 23-Sep-19

Nine Entertainment Company’s hopes of gaining full ownership of Macquarie Media have been boosted after John Singleton advised that he will accept the offer of $1.46 per share unless a higher bid emerges. The advertising industry veteran has a 32.2 per cent stake in the owner of radio stations such as 2GB and 3AW, and he will gain about $80m from the transaction. Singleton says he may invest in the media sector in the future, but he adds that breeding horses and canaries are now his top priority.

CORPORATES
MACQUARIE MEDIA LIMITED – ASX MRN, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED, 2GB, 3AW SOUTHERN CROSS RADIO PTY LTD

Bellamy’s steps up overtures to daigou traders

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Original article by Simon Evans, John Kehoe
The Australian Financial Review – Page: 15 : 18-Sep-19

Shares in infant formula maker Bellamy’s Australia rose a further 1.1 per cent on 17 September, following a 55 per cent jump on 16 September after it disclosed it was the subject of a $1.5 billion takeover by China Mengniu Dairy. Bellamy’s shares had declined 62 per cent in the 18 months prior to the offer, largely due to regulatory problems in China. Some crossbench senators have suggested the Chinese government sought to depress Bellamy’s share price to make it easier for Chinese companies to bid for it, while Bellamy’s will accelerate a push to boost the sales it makes through daigou traders.

CORPORATES
BELLAMY’S AUSTRALIA LIMITED – ASX BAL, CHINA MENGNIU DAIRY COMPANY LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, CENTRE ALLIANCE, AUSTRALIAN GREENS, BURRA FOODS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY

Beer giant CUB expands into wine

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Original article by Simon Evans
The Australian Financial Review – Page: Online : 17-Sep-19

Beer company Carlton & United Breweries has purchased Riot Wine Co, which sells wine in aluminium cans and kegs. Riot Wine was established in 2016 by Joe Cook and Tom O’Donnell, with 90 per cent of its sales coming from on-tap wine in bars and hotels. CUB sales vice-president Rose Scott says Riot’s management will continue to run the company, while she says that CUB has no further wine investments in mind at this stage.

CORPORATES
CARLTON AND UNITED BREWERIES, RIOT WINE CO

Bellamy’s set to be bought by China Mengniu Dairy for $1.5bn

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Original article by Eli Greenblat
The Australian – Page: Online : 17-Sep-19

The board of Bellamy’s Australia has unanimously backed a $1.5 billion takeover bid for the infant milk formula maker by China Mengniu Dairy. The transaction represents the first Chinese takeover bid for an Australian infant milk formula maker, with China Mengniu Dairy manufacturing and distributing dairy products in China, as well as having manufacturing sites in Malaysia and Indonesia. The transaction is subject to the approval of Bellamy’s Australia shareholders and the Foreign Investment Review Board.

CORPORATES
BELLAMY’S AUSTRALIA LIMITED – ASX BAL, CHINA MENGNIU DAIRY COMPANY LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Potential $50b wave of gas M&A deals around the corner

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 27 : 30-Aug-19

David Low of Wood Mackenzie says mergers and acquisitions activity in Australia’s oil and gas sector could increase in coming years. He identifies Cooper Energy and Senex Energy as being among the smaller companies that could become takeover targets, while Oil Search could also potentially attract suitors following its recent share price weakness. Low adds that international companies such as ConocoPhillips and Eni could opt to divest some or all of their assets in Australia.

CORPORATES
WOOD MACKENZIE, COOPER ENERGY LIMITED – ASX COE, SENEX ENERGY LIMITED – ASX SXY, OIL SEARCH LIMITED – ASX OSH, CONOCOPHILLIPS, ENTE NAZIONALE IDROCARBURI SPA, COMET RIDGE LIMITED – ASX COI, GALILEE ENERGY LIMITED – ASX GLL, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, QUADRANT ENERGY PTY LTD

Northern Star buys explorer, eyes Superpit

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Original article by Brad Thompson
The Australian Financial Review – Page: 22 : 28-Aug-19

Gold miner Northern Star Resources has posted a 2018-19 net profit of $154.7m, down from $194.1m previously, while EBITDA was eight per cent higher at $479.7m. Meanwhile, Northern Star Resources has offered $0.33 per share to take full control of Echo Resources, in which it has a 21.7 per cent stake. Echo’s assets include the Yandal gold project in Western Australia and the Bronzewing processing plant. Northern Star Resources has also indicated that it may be open to bidding for the Kalgoorlie Superpit.

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, ECHO RESOURCES LIMITED – ASX EAR, BARRICK GOLD CORPORATION, NEWMONT MINING CORPORATION

Nine jumps on remaining Macquarie stake for $113.9m

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Original article by Max Mason
The Australian Financial Review – Page: 15 : 13-Aug-19

Nine has announced a $1.46 per share offer for the remaining 45.5 per cent of Macquarie Media that it does not already own, with Nine to pay around $114 million for the stake. Macquarie Media is the owner of radio stations 2GB in Sydney and 3AW in Melbourne. Businessman John Singleton, who owns 32.3 per cent of Macquarie Media, stands to receive $81 million if the deal goes through. Nine acquired its majority stake in Macquarie Media as a result of its $4 billion merger with Fairfax Media in 2018.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED, 2GB, 3AW SOUTHERN CROSS RADIO PTY LTD

Divestments on cards in Asahi CUB buyout

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Original article by Simon Evans, Tim Boyd
The Australian Financial Review – Page: 13 & 16 : 23-Jul-19

Asahi Beverages Australia’s executive chairman Peter Margin has downplayed suggestions that the acquisition of Carlton & United Breweries may force the Japanese group to sell some beer brands due to competition concerns. CUB is estimated to have a 48.8 per cent share of the Australian beer market, while the market share of Asahi’s brands is about 1.2 per cent. CUB may have increased its market share in June after it engaged in heavy price discounting and trade loading in the lead-up to the end of the financial year.

CORPORATES
ASAHI BREWERIES LIMITED, CARLTON AND UNITED BREWERIES, ASAHI BEVERAGES AUSTRALIA PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, LION PTY LTD, COOPERS BREWERY LIMITED, ANHEUSER-BUSCH INBEV SA/NV, SABMILLER PLC, FOSTER’S GROUP LIMITED, STONE AND WOOD BREWING COMPANY PTY LTD

Asahi puts $16bn on bar for CUB

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Original article by Bridget Carter, Eli Greenblat
The Weekend Australian – Page: 25 & 28 : 20-Jul-19

Japan-based Asahi is set to acquire Carlton & United Breweries in a $16bn deal, subject to approval by the Foreign Investment Review Board and the Australian Competition & Consumer Commission. The deal includes beer brands such as Victoria Bitter and Carlton Draught, and is expected to be finalised in the March 2020 quarter. Asahi secured the deal after Anheuser-Busch InBev abandoned plans for an IPO of its Asian brands, including CUB. The IPO documents show that CUB had a 48.8 per cent share of the Australian market in 2018, while rival brewer Lion – which is owned by Japan’s Kirin – had a 36.4 per cent market share.

CORPORATES
CARLTON AND UNITED BREWERIES, ASAHI BREWERIES LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, ANHEUSER-BUSCH INBEV SA/NV, LION PTY LTD, KIRIN HOLDINGS COMPANY LIMITED