MERGERS AND ACQUISITIONS – AUSTRALIA

Murdoch needs to get in quick to secure free-to-air TV stations

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Original article by Max Mason
The Australian Financial Review – Page: 29 : 6-Aug-18

Media experts believe that Rupert Murdoch’s News Corporation will eventually bid for Seven West Media following the proposed Nine-Fairfax merger and Ten Network’s sale to CBS. However, News Corp would have to satisfy the "minimum voices" rule, which was not affected by cross-media ownership reforms in 2017. It requires major newspapers, TV stations and radio stations in metropolitan areas to be held by five different owners. A Murdoch bid for Seven would breach the "voices test" in Adelaide if a rival media company moved first by acquiring HT&E’s Australian Radio Network.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, SEVEN WEST MEDIA LIMITED – ASX SWM, SEVEN NETWORK LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, TEN NETWORK HOLDINGS LIMITED, CBS CORPORATION, AUSTRALIAN RADIO NETWORK PTY LTD, HT&E LIMITED – ASX HT1, NOVA ENTERTAINMENT PTY LTD, FOXTEL MANAGEMENT PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Nine could sell Fairfax’s NZ arm

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Original article by Darren Davidson
The Australian – Page: 24 & 26 : 6-Aug-18

Nine Entertainment Company has flagged the possibility of divesting assets such as Fairfax Media’s regional newspapers and its New Zealand business if the proposed $4.06bn merger proceeds. Nine CEO Hugh Marks has held an investor roadshow to pitch the merger deal, which has prompted speculation of further consolidation in the media sector. Seven West Media has advised that it sees no need to pursue mergers and acquisitions in response to the Nine-Fairfax deal.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, SEVEN WEST MEDIA LIMITED – ASX SWM, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, PRIVATE MEDIA PARTNERS PTY LTD, NEWS CORP AUSTRALIA PTY LTD, THE NEW DAILY, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, NBN TELEVISION

Diggers still doing deals as gold price dips

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Original article by Matt Chambers
The Australian – Page: 20 : 6-Aug-18

Mergers and acquisitions activity and rising costs are among the issues that are likely to attract debate during the annual Diggers & Dealers mining conference in Kalgoorlie. Justin Osborne of Gold Road Resources expects larger gold producers to continue to pursue exploration deals in the near-term, although he says M&A activity may increase in coming years. Stuart Mathews, the local head of Gold Fields, says it would be open to appropriate acquisitions in the exploration space but its existing assets are its focus at present.

CORPORATES
DIGGERS AND DEALERS FORUM, GOLD ROAD RESOURCES LIMITED – ASX GOR, GOLD FIELDS LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Shotgun wedding a threat to independence, say journos

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Original article by Stephen Brook, John Ferguson
The Australian – Page: 6 : 27-Jul-18

Fairfax Media journalists have expressed concern about the long-term impact of the merger with Nine Entertainment Company on the newspaper publisher’s editorial independence. Fairfax CEO Greg Hywood and Nine counterpart Hugh Marks have given assurances that the two companies’ newsrooms will not be merged. The Media, Entertainment & Arts Alliance has warned that the deal will reduce media diversity and has urged the Australian Competition & Consumer Commission to block it.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, MEDIA, ENTERTAINMENT AND ARTS ALLIANCE, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Fairfax-Nine merger to fight Facebook, Google

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Original article by Jemima Whyte, Max Mason
The Australian Financial Review – Page: 1 & 19 : 27-Jul-18

Chris Stott of Wilson Asset Management estimates that the proposed $4.2bn merger between Nine Entertainment Company and Fairfax Media will generate cost and revenue synergies of at least $100m. The deal is the first since the changes to cross-media ownership laws, and there is speculation that there will be further consolidation in the sector. Nine Entertainment CEO Hugh Marks will head the new company, which will combine print and broadcasting assets, as well as the Stan streaming video service and a 60 per cent stake in the Domain real estate listings business.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, STAN ENTERTAINMENT PTY LTD, DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, NETFLIX INCORPORATED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, WILSON ASSET MANAGEMENT, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, TPG CAPITAL LP, HELLMAN AND FRIEDMAN, THORNEY INVESTMENTS PTY LTD, AUSBIL INVESTMENT MANAGEMENT LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, ISPT PTY LTD

Atlas facing possible distress

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Original article by Paul Garvey
The Australian – Page: 19 : 17-Jul-18

An independent expert’s report from BDO has valued Atlas Iron at between $0.015 and $A0.03 per share, compared with Hancock Prospecting’s offer of $0.042 per share. BDO has recommended that shareholders accept the offer in the absence of a higher bid. BDO warned that Atlas will be financially vulnerable if the price discount for its low-grade iron ore is sustained, while its Mt Webber mine would have to close. Atlas directors have also used its target statement to recommend that shareholders accept the offer.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, HANCOCK PROSPECTING PTY LTD, BDO AUSTRALIA LIMITED, ALTURA MINING LIMITED – ASX AJM, MINERAL RESOURCES LIMITED – ASX MIN, FORTESCUE METALS GROUP LIMITED – ASX FMG

ACCC’s electricity reform could crush smaller retailers

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Original article by Cole Latimer
The Age – Page: 18 : 13-Jul-18

The Australian Competition and Consumer Commission’s recommendations arising from its review into the retail electricity sector include the adoption of a "basic price offer" and changes to electricity discounting. Both recommendations are expected to impact most on smaller electricity retailers, and could force them to merge with larger rivals. Tony Wood of the Grattan Institute notes that the current level of competition has not necessarily benefited consumers, so they may not be worse off if there are fewer electricity retailers.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, GRATTAN INSTITUTE, AUSTRALIAN ENERGY REGULATOR, MACQUARIE WEALTH MANAGEMENT

Hancock hopes rising as Atlas bleeds cash

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Original article by Paul Garvey
The Australian – Page: 19 : 13-Jul-18

Atlas Iron held cash on hand of $57 million at the end of June, down from $78 million at the end of March. It shipped 2.1 million tonnes of iron ore during the June quarter, but lost an average of $3 per tonne on every tonne shipped. The amount owed by Atlas to lenders increased from $83 million to $85 million over the quarter. The rise in debt and the fall in Atlas’s cash position has boosted the likelihood that shareholders will accept Hancock Prospecting’s $390 million takeover bid.

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

Godfreys’ 99-year-old owner plans to fight back

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Original article by Simon Evans
The Australian Financial Review – Page: 13 & 18 : 6-Jul-18

Vacuum cleaner retailer Godfreys Group will be delisted on 6 July, following its purchase by Arcadia Financial for just $13.5 million. Arcade Finance is controlled by John Johnston, who joined Godfreys in 1936. Johnston told Godfreys CEO John Hardy during a recent meeting that he thinks Godfreys should be making more use of social media. Godfreys had a 40 per cent share of the $3 billion vacuum cleaner market in 2006, but Hardy thinks it is now down to 18 per cent.

CORPORATES
GODFREYS GROUP LIMITED – ASX GFY, ARCADE FINANCE PTY LTD, JB HI-FI LIMITED – ASX JBH, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, WOOLWORTHS GROUP LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, THE GOOD GUYS, BARBEQUES GALORE PTY LTD, SUPER A-MART PTY LTD, LE CORNU LEWIS HANCOCK

Sunsuper swallows another fund

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Original article by Joanna Mather
The Australian Financial Review – Page: 16 : 6-Jul-18

Sunsuper will merge with AustSafe Super, a $2.2 billion industry super fund that targets regional and rural Australians. The merger will create a $58 billion fund with 1.4 million members. The Australian Prudential Regulation Authority is keen to see smaller superannuation funds merge, while Sunsuper CEO Scott Hartley believes that the sector will consolidate to the point where only half a dozen "mega" funds remain.

CORPORATES
SUNSUPER PTY LTD, AUSTSAFE PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, KINETIC SUPER, AUSTRALIA. PRODUCTIVITY COMMISSION, CHANT WEST FINANCIAL SERVICES PTY LTD