MERGERS AND ACQUISITIONS – AUSTRALIA

Gina Rinehart’s Hancock Prospecting again lifts Atlas Iron offer to $427m

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Original article by Stuart McKinnon
The West Australian – Page: Online : 27-Sep-18

Hancock Prospecting hopes to secure control of Atlas Iron with another revised takeover offer. Atlas shareholders will receive $0.046 per share if Hancock gains acceptances for 87 per cent of the iron ore miner’s stock. Hancock recently increased its offer to $0.0445 per share, which enabled it to lift its stake in Atlas to 77.06 per cent. The latest offer is slated to close on 2 October. Iron ore rival Fortescue Metals Group has an 11.4 per cent stake in Atlas.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, HANCOCK PROSPECTING PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, MINERAL RESOURCES LIMITED – ASX MIN

Hanson warns against bid for gas pipelines

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 19-Sep-18

Cheung Kong Infrastructure’s $13 billion takeover of pipeline operator APA Group remains subject to approval by the Foreign Investment Review Board. However, One Nation leader Pauline Hanson opposes the deal, arguing that key infrastructure should remain locally-owned, whether by governments or the private sector. Hanson has vowed to campaign against the deal if it receives government approval, while Liberal senator Jim Molan has also called for the deal to be blocked.

CORPORATES
APA GROUP – ASX APA, CHEUNG KONG INFRASTRUCTURE HOLDINGS LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, ONE NATION PARTY, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. DEPT OF THE TREASURY, IFM INVESTORS PTY LTD, HUAWEI TECHNOLOGIES COMPANY LIMITED, CENTRE ALLIANCE

Nine Network (+ Stan) will close gap on Seven Network

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Original article by Roy Morgan
Market Research Update – Page: Online : 17-Sep-18

Research from Roy Morgan shows that almost 11.9 million Australians watch the Nine Network across broadcast and Catch Up platforms in an average week, while nearly 12.5 million watch the Seven Network and almost 11.3 million watch the ABC. Nine Entertainment’s merger with Fairfax Media will bring together two of Australia’s leading media companies, as well as their 50:50 joint venture subscription video-on-demand service Stan (which is watched by over 2 million Australians in an average four weeks). The merger will boost the combined viewership of Nine Entertainment platforms to over 12.2 million, within reach of the Seven Network. Roy Morgan CEO Michele Levine says that although some have expressed concerns about the potential lessening of competition the merger may bring, the proliferation of competing Pay TV and SVOD services such as Netflix, Amazon Prime, YouTube Premium, Fetch and others, suggests that competition in the viewing space is intensifying rather than reducing.

CORPORATES
ROY MORGAN LIMITED, NINE NETWORK AUSTRALIA LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, STAN ENTERTAINMENT PTY LTD, SEVEN NETWORK LIMITED, AUSTRALIAN BROADCASTING CORPORATION, TEN NETWORK HOLDINGS LIMITED, SPECIAL BROADCASTING SERVICE (SBS), NETFLIX INCORPORATED, AMAZON PRIME, YOUTUBE PREMIUM, FETCHTV PTY LTD

Bega’s money not for Capilano Honey: Irvin

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Original article by Eli Greenblat
The Australian – Page: 20 : 11-Sep-18

Bega Cheese announced plans for a $200 million share placement and associated share purchase plan on 10 September. The announcement prompted speculation that it would be using the money raised to launch a counter bid for Capilano Honey, in which it holds a 8.4 per cent stake and which is currently the subject of a $20.06 per share takeover bid from private equity groups Wattle Hill and ROC Partners. Bega executive chairman Barry Irvin claims the money will be used to strengthen its balance sheet and reduce its debt levels, and that it had not made any decisions about Capilano.

CORPORATES
BEGA CHEESE LIMITED – ASX BGA, CAPILANO HONEY LIMITED – ASX CZZ, WATTLE HILL, ROC PARTNERS PTY LTD, SAPUTO INCORPORATED, MONDELEZ AUSTRALIA (FOODS) LIMITED

Bega’s all abuzz for stung Capilano

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Original article by Eli Greenblat
The Australian – Page: 19 & 29 : 7-Sep-18

Bega Cheese has increased its stake in Capilano Honey to 8.4 per cent, after having secured an initial shareholding in the week ending 31 August. Capilano is currently the subject of a takeover bid from private equity groups Wattle Hill and ROC Partners, whose $20.06 per share offer values Capilano at more than $190 million. Bega executive chairman Barry Irwin states he is not perturbed by reports that Capilano may unknowingly be selling "fake honey". Irwin says Bega has not made any decisions about making a bid for Capilano itself.

CORPORATES
BEGA CHEESE LIMITED – ASX BGA, CAPILANO HONEY LIMITED – ASX CZZ, WATTLE HILL, ROC PARTNERS PTY LTD, AUSTRALIAN CAPITAL EQUITY PTY LTD, KIDDER WILLIAMS LIMITED, SAPUTO INCORPORATED, WARRNAMBOOL CHEESE AND BUTTER FACTORY COMPANY HOLDINGS LIMITED

Sino Gas investors accept Lone Star bid

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 22 : 6-Sep-18

Sino Gas shareholders voted on 5 September to accept US private equity fund Lone Star’s $0.25 per share takeover bid for the company. The bid, which values Sino Gas at $530 million, was first tabled in May. Grant Thornton had deemed Lone Star’s offer "to be fair and reasonable", and it had the unanimous support of Sino Gas’s board. Sino Gas is the only Australian-based gas company with operations in China, having commenced production in the Shanxi province in late 2014.

CORPORATES
SINO GAS AND ENERGY HOLDINGS LIMITED – ASX SEH, LONE STAR FUNDS, GRANT THORNTON AUSTRALIA, TEMASEK HOLDINGS (PTE) LTD, OPHIR ENERGY PLC

Mallesons in conflict over Capilano Honey takeover

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 21 : 4-Sep-18

Law firm Mallesons was understood to be advising Wattle Hill and ROC Partners on their agreed $190 million takeover bid for Capilano Honey, announced in August. However, it removed itself from that process after revealing it had been involved in the commissioning of a report that was highly critical of Capilano’s products, with the report alleging it and a number of other honey producers had products that had tested as "adulterated". Capilano has denied the claims, while it is believed Minter Ellison has replaced Mallesons as the law firm adviser on the Capilano bid.

CORPORATES
MALLESONS STEPHEN JAQUES, WATTLE HILL, ROC PARTNERS PTY LTD, CAPILANO HONEY LIMITED – ASX CZZ, MINTER ELLISON, MACQUARIE CAPITAL PTY LTD, PRICEWATERHOUSECOOPERS, HERBERT SMITH FREEHILLS PTY LTD, BEGA CHEESE LIMITED – ASX BGA, KPMG AUSTRALIA PTY LTD

TPG bulks up ahead of 5G mobile race

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Original article by Supratim Adhikari
The Australian – Page: 17 & 20 : 31-Aug-18

The merged TPG Telecom and Vodafone Hutchison Australia will boast eight million customers and revenue in excess of $6bn. TPG founder David Teoh will have a 17 per cent stake in the combined group, while Vodafone’s existing parent companies Vodafone Group and CK Hutchison Holdings will jointly own 50.1 per cent of the new company. The $15bn deal will be closely scrutinised by the Australian Competition & Consumer Commission, which will examine factors such as its impact on the mobile and fixed broadband markets, as well as the forthcoming auction of 5G spectrum.

CORPORATES
TPG TELECOM LIMITED – ASX TPM, VODAFONE HUTCHISON AUSTRALIA PTY LTD, VODAFONE GROUP PLC, CK HUTCHISON HOLDINGS LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, WASHINGTON H SOUL PATTINSON AND COMPANY LIMITED – ASX SOL, VERTIUM ASSET MANAGEMENT

TPG, Vodafone set for merger of equals as Telstra and Optus put on notice

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Original article by Bridget Carter
The Australian – Page: 17 & 28 : 30-Aug-18

The merger between TPG Telecom and Vodafone Hutchison Australia, to be announced on 30 August, may affect the amount the federal government raises from its upcoming auction of 5G spectrum. Vodafone will control 50.1 per cent of the combined company, which will boast a market capitalisation of around $10bn. Vodafone CEO Inaki Berroeta will take on the same role at the merged group, with TPG CEO David Teoh to become chairman. TPG shares have rallied in the last week, with the stock closing $0.28 higher at $7.88 on 29 August.

CORPORATES
TPG TELECOM LIMITED – ASX TPM, VODAFONE HUTCHISON AUSTRALIA PTY LTD, WASHINGTON H SOUL PATTINSON AND COMPANY LIMITED – ASX SOL, TELSTRA CORPORATION LIMITED – ASX TLS, SINGTEL OPTUS PTY LTD, MACQUARIE CAPITAL PTY LTD, DEUTSCHE BANK AG, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, VODAFONE NEW ZEALAND LIMITED

APN Outdoor finishes up with a profit jump

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Original article by Max Mason
The Australian Financial Review – Page: 21 : 24-Aug-18

APN Outdoor Group has posted a 2018 interim net profit of $17.8m, which is 13 per cent higher than previously. The outdoor advertising group has advised that it still expects underlying EBITDA of $92m to $96m for the full year, which is likely to be its last as a listed company after its acquisition by JC Decaux was cleared by the competition regulator. APN Outdoor CEO James Warburton has declined to comment on his future, but sources have indicated that he is likely to leave the company when the deal is completed.

CORPORATES
APN OUTDOOR GROUP LIMITED – ASX APO, JC DECAUX SA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, OOH!MEDIA LIMITED – ASX OML, ADSHEL PTY LTD, HT&E LIMITED – ASX HT1, TEN NETWORK HOLDINGS LIMITED, SYDNEY TRAINS, NEW SOUTH WALES. ROADS AND MARITIME SERVICES, TRANSPORT FOR BRISBANE, SYDNEY AIRPORT – ASX SYD