MERGERS AND ACQUISITIONS – AUSTRALIA

JCDecaux’s APN buy shrinks market

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Original article by Bridget Carter
The Australian – Page: 19 : 27-Jun-18

APN Outdoor Group’s board has recommended that shareholders accept JCDecaux’s revised offer of $A6.70 per share, which values the bid at $A1.217bn. France-based JCDecaux had initially offered $A6.52 per share. APN Outdoor MD James Warburton says digital disruption is unlikely to have much impact on the outdoor advertising sector. APN Outdoors’ shares closed three per cent higher at $A6.42 on 26 June.

CORPORATES
APN OUTDOOR GROUP LIMITED – ASX APO, JC DECAUX SA, OOH!MEDIA LIMITED – ASX OML, ADSHEL PTY LTD, HT&E LIMITED – ASX HT1, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, MORNINGSTAR PTY LTD, YARRA TRAMS, NEW SOUTH WALES. ROADS AND MARITIME SERVICES

APN hopes for more from JCDecaux

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Original article by Bridget Carter
The Australian – Page: 29 : 22-Jun-18

APN Outdoor Group has advised shareholders to take no action at present regarding JCDecaux’s $A1.1bn takeover bid. Dion Hershan of Yarra Capital has described the cash offer of $A6.52 per share as "opportunistic". Shares in the out-of-home advertising group closed 12.14 per cent higher at $A6.56 on 21 June. Based on APN’s current valuation, the offer represents an 11.5 per cent premium to its closing share price on 20 June, and it is believed that a premium of 30 per cent will be required for APN directors to endorse the bid.

CORPORATES
APN OUTDOOR GROUP LIMITED – ASX APO, JC DECAUX SA, YARRA CAPITAL PARTNERS PTY LTD, APN OUTDOOR GROUP LIMITED – ASX APO, CADENCE ADVISORY, ADSHEL PTY LTD, HT&E LIMITED – ASX HT1

Atlas board backs Rinehart’s $390m bid

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Original article by Brad Thompson
The Australian Financial Review – Page: 22 : 22-Jun-18

Mineral Resources will be entitled to a break fee of $A3.12m after Atlas Iron’s board recommended that shareholder accept the rival bid from Gina Rinehart’s Hancock Prospecting. Atlas had previously endorsed Mineral Resources’ scrip offer of $A0.036 per share, which was trumped by Hancock’s cash bid of $A0.042 per share. Fortescue Metals Group could also make a counter-bid for Atlas in the wake of its recent move to acquire a 19.9 per cent stake in the iron ore producer.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, HANCOCK PROSPECTING PTY LTD, MINERAL RESOURCES LIMITED – ASX MIN, FORTESCUE METALS GROUP LIMITED – ASX FMG, REDSTONE CORPORATION PTY LTD, CLEVELAND-CLIFFS INCORPORATED

French in $1.1bn APN Outdoor bid

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Original article by Bridget Carter, Scott Murdoch
The Australian – Page: 17 & 19 : 21-Jun-18

JCDecaux has made a cash offer of $A6.52 per share for Australian-listed APN Outdoor Group. France-based JCDecaux is a major player in Australia’s street furniture advertising market, and it says APN’s outdoor advertising businesses would complement its local operations. The $A1.1bn takeover bid is likely to affect APN’s own proposal to acquire the Adshel business from rival HT&E. APN was seen as the leading contender to acquire Adshel, although oOh!media is also believed to be in contention.

CORPORATES
APN OUTDOOR GROUP LIMITED – ASX APO, JC DECAUX SA, ADSHEL PTY LTD, HT&E LIMITED – ASX HT1, OOH!MEDIA LIMITED – ASX OML, YARRA TRAIL PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, GOLDMAN SACHS AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, CLSA AUSTRALIA PTY LTD

MinRes yields to Rinehart in Atlas race

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Original article by Brad Thompson
The Australian Financial Review – Page: 26 : 21-Jun-18

Atlas Iron directors are expected to recommend that shareholders accept a $A390m takeover bid from Gina Rinehart’s Hancock Prospecting, after Mineral Resources advised that it will not match the offer. However, Fortescue Metals Group could leverage its 19.9 per cent stake in Atlas to block the deal; Peter O’Connor of Shaw & Partners suggests that if Fortescue does so it could then potentially seek an agreement with Hancock to split Atlas’s assets. O’Connor adds that Fortescue could also make a counter-bid for Atlas.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, HANCOCK PROSPECTING PTY LTD, MINERAL RESOURCES LIMITED – ASX MIN, FORTESCUE METALS GROUP LIMITED – ASX FMG, REDSTONE CORPORATION, SHAW AND PARTNERS LIMITED

EMR Capital buys BHP Chile copper mine for $310 million

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Original article by James Thomson
The Australian Financial Review – Page: 13 : 20-Jun-18

BHP Billiton has sold its Cerro Colorado copper mine in Chile to private equity firm EMR Capital for $US230m ($A310m). BHP will also receive $US40m from the sale of inventory from the mine, while a potential additional payment of up to $US50m is linked to the outlook for the copper price. EMR’s co-founder Jason Chang says the firm’s focus is on increasing the mine’s output and its resource base, rather than the copper price. Chang expects EMR to make further acquisitions in the next two years.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, EMR CAPITAL PTY LTD, RIO TINTO LIMITED – ASX RIO, ADARO ENERGY

MinRes losing battle for Atlas

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Original article by Paul Garvey
The Australian – Page: 21 : 20-Jun-18

Atlas Iron has given Mineral Resources three days to match the rival bid from Gina Rinehart’s Hancock Prospecting. Mineral Resources’ share price has fallen sharply since launching its scrip bid; based on its closing price of $A16.15 on 19 June, the implied value of its offer has fallen to $A0.028 per share, compared with Hancock’s cash bid of $A0.042. Atlas’s port access rights at Port Hedland are a key attraction for the bidders – despite the Western Australian Government’s ruling that junior miners have priority access – along with accumulated tax losses that exceed $A500m.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, MINERAL RESOURCES LIMITED – ASX MIN, FORTESCUE METALS GROUP LIMITED – ASX FMG

Billionaire battle as Rinehart bids $390m for Atlas

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Original article by Paul Garvey
The Australian – Page: 17 & 20 : 19-Jun-18

Hancock Prospecting’s cash offer of $A0.042 per share for Atlas Iron and follows its recent acquisition of a substantial shareholding in the iron ore miner. Mineral Resources has previously offered $A0.036 per share for Atlas in a scrip bid, while Andrew Forrest’s Fortescue Metals Group has acquired a 19.9 per cent stake in Atlas. There is speculation that mining magnate Gina Rinehart is primarily interested in two proposed new berths at Port Hedland, which are adjacent to Hancock’s existing berths. However, the Western Australian Government would have to back down on its stance that junior iron ore miners should have priority access to the new berths.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, HANCOCK PROSPECTING PTY LTD, MINERAL RESOURCES LIMITED – ASX MIN, FORTESCUE METALS GROUP LIMITED – ASX FMG, REDSTONE CORPORATION, SHAW AND PARTNERS LIMITED, WESTERN AUSTRALIA. DEPT OF TRANSPORT, AWE LIMITED, MITSUI AND COMPANY LIMITED

Fortescue derails MinRes bid for Atlas

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Original article by Paul Garvey
The Australian – Page: 19 & 22 : 8-Jun-18

Fortescue Metals Group has paid $A0.04 per share for a 15 per cent stake in Atlas Iron. The pure-play iron ore miner also has an economic interest in about 4.9 per cent of Atlas’s shares via a cash-settled swap, effectively giving it a stake of 19.9 per cent. CEO Elizabeth Gaines has also advised that Fortescue will not support the proposed scheme of arrangement between Atlas and suitor Mineral Resources at present, although it remains open to doing so. Atlas shares closed 12 per cent lower at $A0.028 on 7 June. Haoma Mining sold its iron ore rights at the Mt Webber Dalton deposit to Atlas in April 2012.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, ATLAS IRON LIMITED – ASX AGO, MINERAL RESOURCES LIMITED – ASX MIN, ARGONAUT SECURITIES PTY LTD, FOSTER STOCKBROKING PTY LTD, AWE LIMITED, MITSUI AND COMPANY LIMITED, HAOMA MINING NL

One Nation split boosts union clout

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Original article by Joe Kelly
The Australian – Page: 1 & 2 : 4-Jun-18

Further dissent within One Nation has emerged amid allegations concerning the Federal Government’s failure to pass legislation to subject union mergers to a public interest test. One Nation senator Brian Burston claims that his colleague Peter Georgiou opposed the Ensuring Integrity Bill in defiance of Burston and party leader Pauline Hanson. Burston says the latter then agreed to oppose the bill to ensure that the party was not viewed as being divided. A government source has backed Burston’s claim, stating that the government would have had sufficient support for the bill if Georgiou had voted for it.

CORPORATES
ONE NATION PARTY, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, MARITIME UNION OF AUSTRALIA, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, THE AUSTRALIAN INDUSTRY GROUP