MERGERS AND ACQUISITIONS – AUSTRALIA

Arcadium investors sue over Rio takeover

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Original article by Elouise Fowler
The Australian Financial Review – Page: 15 : 17-Dec-24

Arcadium Lithium and its board of directors are facing legal action from three shareholders over the company’s acquisition by Rio Tinto. The investors contend that Arcadium’s directors had misled shareholders and failed in their fiduciary duty to maximise value in the $US6.7 billion ($9.9 billion) deal. Rio Tinto has not been named as a defendant in the lawsuits. The proposed merger will require the support of at least 75 per cent of Arcadium’s shareholders when they vote on the deal next week.

CORPORATES
ARCADIUM LITHIUM PLC – ASX LTM, RIO TINTO LIMITED – ASX RIO

Northern Star in De Grey takeover

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Original article by Brad Thompson, Valerina Changarathil
The Australian – Page: 13 & 19 : 3-Dec-24

Northern Star Resources will acquire smaller gold producer De Grey Mining via a scheme of arrangement. The all-scrip $5bn deal has been unanimously backed by De Grey’s directors, and is subject to shareholder and court approval. Northern Star’s offer comprises 0.119 of its shares for each De Grey share; the latter’s assets include the undeveloped Hemi project in Western Australia, which is slated to produce 530,000 ounces of gold a year during the first decade of operation. Northern Star CEO Stuart Tonkin says he is not concerned about acquiring Hemi without final federal and state environmental approvals in place.

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, DE GREY MINING LIMITED – ASX DEG

Myer buys big brands from Lew’s Premier

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Original article by Carrie LaFrenz
The Australian Financial Review – Page: 13 : 30-Oct-24

Premier Investments will hold a 51.5 per cent stake in Myer Holdings if a deal to sell its Apparel Brands division to the department store group is approved by shareholders. Premier’s chairman Solomon Lew will personally control about 27 per cent of Myer and become a director of the iconic retailer. The deal includes brands such as Just Jeans, Jay Jays, Dotti and Portmans; Premier will then focus on its Smiggle and Peter Alexander brands. Myer’s executive chair Olivia Worth says the deal will allow the Myer One customer loyalty program to target a younger demographic.

CORPORATES
PREMIER INVESTMENTS LIMITED – ASX PMV, MYER HOLDINGS LIMITED – ASX MYR, APPAREL BRANDS, JUST JEANS PTY LTD, JAY JAY’S JEANS WAREHOUSE PTY LTD, DOTTI, PORTMANS PTY LTD, SMIGGLE PTY LTD, PETER ALEXANDER SLEEPWEAR PTY LTD

Market backs Rio’s $10bn Arcadium play

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Original article by Glen Norris
The Australian – Page: 19 : 11-Oct-24

Citigroup estimates that Rio Tinto’s $9.9bn deal to acquire Arcadium Lithium will generate annual synergies of about $125m. The firm expects Arcadium shareholders to back the deal, contending that the downturn in the price of the battery mineral means that is it is currently cheaper to buy lithium assets rather than build new mines. The deal will make Rio Tinto one of the world’s biggest lithium producers, and CEO Jakob Stausholm says he believes that the transaction is a "risk worth taking". He has also rejected suggestions that Rio Tinto is paying too much for Arcadium.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ARCADIUM LITHIUM PLC – ASX LTM

Rio Tinto’s Argentina dream gets investor OK

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Original article by Peter Ker, Elouise Fowler
The Australian Financial Review – Page: 17 : 9-Oct-24

Shares in Arcadium Lithium have rallied in the wake of Rio Tinto’s takeover approach, and the company’s market capitalisation has risen to $6.5bn. However, some analysts regard the timing of the bid to be opportunistic, given that Arcadium’s market cap was $10.6bn in May, prior to a sharp fall in the lithium price. Arcadium has two lithium projects in Argentina, and investors are generally supportive of Rio Tinto’s bid, noting that the pro-business stance of the South American country’s new government will help to offset any sovereign risk.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ARCADIUM LITHIUM PLC – ASX LTM

Arcadium move could cost Rio $9b: investors

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Original article by Peter Ker, Joanne Tran
The Australian Financial Review – Page: 1 & 19 : 8-Oct-24

Wilson Asset Management’s Matt Haupt is "broadly supportive" of Rio Tinto’s takeover bid for Arcadium Lithium. He argues that the target is worth more as part of a larger company than a stand-alone business. Rio Tinto confirmed the takeover approach on Monday, and emphasised that there is no certainty that the talks will result in a deal. Arcadium’s market capitalisation was about $US3.3bn ($4.85bn) on Friday. However, Rob Stein from Morningstar estimates that Arcadium is valued at around $US8.5bn, based on the sum ‘of its parts’; he adds that Rio Tinto may need to offer a control premium to reflect the synergies arising from combining the companies’ lithium projects in Argentina.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ARCADIUM LITHIUM PLC – ASX LTM, WILSON ASSET MANAGEMENT, MORNINGSTAR PTY LTD

SPC heads back to the ASX for the first time in two decades

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Original article by Simon Evans
The Australian Financial Review – Page: 15 : 3-Oct-24

Iconic Australian canned food company SPC has revealed plans for a three-way merger with the listed Original Juice Company and powdered milk group Nature One Dairy. SPC will list on the Australian sharemarket via a reverse takeover of Original Juice, while it will pay $50m for Nature One. SPC chairman Hussein Rifai will become chairman of the merged entity, while Original Juice chairman Jeff Kennett will step down if shareholders approve the deal. SPC had previously been listed on the ASX until 2005, when it was acquired by Coca-Cola Amatil; SPC was subsequently divested in 2019.

CORPORATES
SPC GLOBAL LIMITED, THE ORIGINAL JUICE COMPANY LIMITED – ASX OJC, NATURE ONE DAIRY

Paladin’s $1.5b uranium deal slowed by national security probe

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Original article by Peter Ker
The Australian Financial Review – Page: Online : 3-Oct-24

Paladin Energy had expected to complete a deal to acquire Toronto-listed Fission Uranium by the end of September. However, the timetable for closing the $1.5bn deal is uncertain following the Canadian government’s decision to initiate a national security review of the transaction. A Chinese state-owned entity has a 25 per cent stake in Paladin’s flagship Langer Heinrich uranium mine in Namibia; another such company holds an 11 per cent stake in Fission and tried to block the Paladin deal.

CORPORATES
PALADIN ENERGY LIMITED – ASX PDN, FISSION URANIUM CORPORATION

Greatland Gold wants Telfer, but there may be a sting in the tailings

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Original article by Peter Ker
The Australian Financial Review – Page: 20 : 11-Sep-24

Greatland Gold has advised the London Stock Exchange that it is in exclusive talks to buy the Telfer gold mine in Western Australia. Greatland added that negotiations are advanced and a deal may be close. Newmont Corporation announced plans to divest Telfer in February. However, Greatland has indicated that any deal to acquire Telfer will be conditional on Newmont repairing leaks in two tailings dams at the mine. Production at Telfer was disrupted by remediation work at the dams earlier in 2024.

CORPORATES
GREATLAND GOLD PLC, NEWMONT CORPORATION – ASX NEM

Woodside swoops with US gas deal

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Original article by Colin Packham
The Australian – Page: 15 & 19 : 23-Jul-24

Woodside Energy will increase its presence in the US after securing a $US1.2bn ($1.79bn) deal to acquire Tellurian, which is developing an LNG export terminal in Louisiana. Tellurian’s Driftwood terminal is expected to have annual export capacity of about 27.6 million tonnes, which is significantly higher than Woodside’s annual production in Australia. Woodside expects to make a final investment decision on the Driftwood project by the end of 2025, and says the facility could be operational before the end of this decade. Tellurian is said to have invested more than $US1bn in the project to date.

CORPORATES
WOODSIDE ENERGY GROUP LIMITED – ASX WDS, TELLURIAN INCORPORATED