MERGERS AND ACQUISITIONS – AUSTRALIA

Employers lash Coalition on union merger

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Original article by Ewin Hannan
The Australian – Page: 1 & 4 : 7-Mar-18

The merger between the Construction, Forestry, Mining & Energy Union and the Maritime Union of Australia is slated to take effect on 27 March, after it was approved by the Fair Work Commission. The Australian Mines & Metals Association has urged the Federal Government to push for the Senate to block the merger prior to this date, although Workplace Relations Minister Craig Laundy argues that the Ensuring Integrity Bill is not retrospective so it would have no impact on the merger. The merged union will boast 144,000 members and $A310m worth of assets.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, MARITIME UNION OF AUSTRALIA, AUSTRALIA. FAIR WORK COMMISSION, TEXTILE, CLOTHING AND FOOTWEAR UNION OF AUSTRALIA, AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED), AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, MASTER BUILDERS AUSTRALIA INCORPORATED, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS

SEEK buy-out of News Corp from Asia arm makes sense

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Original article by Max Mason
The Australian Financial Review – Page: 15 : 6-Mar-18

Online jobs advertiser SEEK will pay $A157 million to buy News Corp’s 13.75 per cent stake in its Asian business. SEEK CEO Andrew Bassat says News Corp had been a "great partner", and that moving to 100 per cent ownership of SEEK Asia "just made sense". SEEK will use existing debt facilities to fund the transaction, which is due to be completed by 16 March. SEEK had revenue of $A620.3 million for the first half 2017-18, of which its international businesses contributed $A340.1 million.

CORPORATES
SEEK LIMITED – ASX SEK, SEEK ASIA, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS

Private equity upbeat on deals, record capital

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 17 & 20 : 2-Mar-18

Bain & Company has released a report which notes that the global private equity industry had some $US633bn worth of funds to invest at the end of 2017. Meanwhile, private equity experts who attended the annual Asian Venture Capital Journal conference are positive about the outlook for deal-making in Australia during 2018. Data from Dealogic shows that $US1bn ($A1.3bn) worth of deals were made in the first two months of the year.

CORPORATES
BAIN AND COMPANY, PACIFIC EQUITY PARTNERS PTY LTD, KKR AND COMPANY LP, I-MED/MIA NETWORK LIMITED, LIFEHEALTHCARE GROUP LIMITED – ASX LHC, DEALOGIC (AUSTRALIA) PTY LTD, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, BGH CAPITAL PTY LTD

Contempt case threatens super union

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 8 : 28-Feb-18

Victorian International Container Terminals’ contempt of court lawsuit against the Maritime Union of Australia could prevent its proposed merger with the Construction, Forestry, Mining & Energy Union. The Fair Work Commission, which is shortly slated to issue a ruling on the merger, has received a submission which argues that contempt charge constitutes criminal proceedings under the Fair Work Act. The Registered Organisations Act in turn states that a union merger cannot by approved if there is outstanding criminal proceedings. The unions contend that the contempt charge is civil rather than criminal.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, MARITIME UNION OF AUSTRALIA, VICTORIAN INTERNATIONAL CONTAINER TERMINAL PTY LTD, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED), MASTER BUILDERS AUSTRALIA INCORPORATED

Contempt case threatens super union

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 8 : 28-Feb-18

Victorian International Container Terminals’ contempt of court lawsuit against the Maritime Union of Australia could prevent its proposed merger with the Construction, Forestry, Mining & Energy Union. The Fair Work Commission, which is shortly slated to issue a ruling on the merger, has received a submission which argues that contempt charge constitutes criminal proceedings under the Fair Work Act. The Registered Organisations Act in turn states that a union merger cannot by approved if there is outstanding criminal proceedings. The unions contend that the contempt charge is civil rather than criminal.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, MARITIME UNION OF AUSTRALIA, VICTORIAN INTERNATIONAL CONTAINER TERMINAL PTY LTD, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED), MASTER BUILDERS AUSTRALIA INCORPORATED

David Jones not looking at riding to Myer’s rescue

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Original article by Eli Greenblat
The Australian – Page: 19 : 23-Feb-18

Department store chain Myer canvassed rival David Jones about what would have been a $A3 billion merger in late 2013, but the potential deal never got off the ground. Myer shares fell a record low of less than $A0.50 on 22 February, amid growing fears about its financial health. Ian Moir, the CEO of David Jones’ parent Woolworths Holdings, said he has no interest in making a bid for Myer. David Jones’ operating profit fell by 29.4 per cent in the December half, and Moir said his focus is on improving its performance.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, WOOLWORTHS HOLDINGS LIMITED

There is no plan B to Westfield takeover: Lowy

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Original article by Nick Lenaghan
The Australian Financial Review – Page: 34 : 23-Feb-18

European shopping centre group Unibail-Rodamco announced plans to acquire shopping mall owner Westfield Corporation in early December. At the time, Unibail’s scrip-focused deal valued Westfield at $A10.01 per share, but this had fallen to around $A8.82 per share on 22 February. Asked about the future of the deal at the announcement of Westfield’s full-year results, co-CEO Peter Lowy advised that there was "no plan B" in place. Westfield’s 2017 profit of $US1.55 billion is 13.5 per cent higher than previously.

CORPORATES
WESTFIELD CORPORATION – ASX WFD, UNIBAIL-RODAMCO, MACQUARIE GROUP LIMITED – ASX MQG, JP MORGAN AUSTRALIA LIMITED

Mitsui offer for AWE deemed fair

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

AWE Limited has posted a 2017-18 interim net loss of $A23.8m, although its underlying loss narrowed from $A11.5m previously to just $A5.3m. Meanwhile, an independent expert’s report by Grant Thornton has concluded that the $A602m takeover offer from Japan-based Mitsui is "fair and reasonable". The firm values AWE’s shares at between $A0.78 and $A1.06, compared with Mitsui’s offer of $A0.95 per share. RBC Capital Markets says Mineral Resources and China Energy Reserve & Chemical Group are unlikely to make new offers for AWE.

CORPORATES
AWE LIMITED – ASX AWE, GRANT THORNTON AUSTRALIA, MITSUI AND COMPANY LIMITED, RBC CAPITAL MARKETS, MINERAL RESOURCES LIMITED – ASX MIN, CHINA ENERGY RESERVE AND CHEMICAL GROUP COMPANY LIMITED, LATTICE ENERGY LIMITED, BEACH ENERGY LIMITED – ASX BPT

Super Retail punished for $134m Macpac buy

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Original article by Eli Greenblat
The Australian – Page: 19 : 21-Feb-18

Super Retail Group has reported a 2017-18 interim net profit of $A72.2m, which is three per cent lower than previously and below analysts’ forecasts. Group sales rose by 2.2 per cent to $A1.323bn, although its BCF and Rays businesses underperformed. Meanwhile, Super Retail’s shares closed 14.5 per cent lower on 20 February after the group revealed plans to acquire outdoor adventurewear retailer Macpac for $A134m. Shareholders will receive an interim dividend of $A0.215 per share.

CORPORATES
SUPER RETAIL GROUP LIMITED – ASX SUL, BCF BOATING CAMPING FISHING, RAYS, MACPAC WILDERNESS EQUIPMENT, SUPER CHEAP AUTO, REBEL SPORT LIMITED

Health merger takes on majors

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Original article by Sarah-Jane Tasker
The Australian – Page: 17 & 20 : 20-Feb-18

Health insurance industry leaders forecast further consolidation in the sector after HCF and HBF revealed plans to merge. They are currently Australia’s two largest not-for-profit health funds, and the merged entity would boast $A4bn worth of assets, about 2.5 million members and a market share of around 18.4 per cent. HBF CEO John Van Der Wielen says the merged group would have a greater chance of ensuring that premium increases are kept in line with the inflation rate. He adds that both funds have had the industry’s lowest premium increases in 2018.

CORPORATES
THE HOSPITAL CONTRIBUTIONS FUND OF AUSTRALIA LIMITED, HBF HEALTH LIMITED, BUPA AUSTRALIA PTY LTD, MEDIBANK PRIVATE LIMITED – ASX MPL, NIB HOLDINGS LIMITED – ASX NHF, AUSTRALIAN LABOR PARTY