MERGERS AND ACQUISITIONS – AUSTRALIA

Alinta’s plan to rattle AGL and Origin

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 & 23 : 16-Jan-18

Alinta believes that its purchase of Victoria’s Loy Yang B coal-fired power station for around $A1.2 billion can help it boost customer numbers. Alinta MD Jeff Dimery notes that it has around 800,000 to 900,000 customers at the moment, and that it is capable of coping with around two million customers. He says Alinta is still committed to expanding its renewable energy generation capacity, despite its purchase of Loy Yang B.

CORPORATES
ALINTA ENERGY (AUSTRALIA) PTY LTD, ENGIE SA, AGL ENERGY LIMITED – ASX AGL, ORIGIN ENERGY LIMITED – ASX ORG, ENERGYAUSTRALIA PTY LTD, CHOW TAI FOOK ENTERPRISES LIMITED, ECOGEN ENERGY, IFM INVESTORS PTY LTD

Chocolate maker Darrell Lea sold for a lip-smacking $200m

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Original article by Nick Toscano, Sarah Danckert
The Age – Page: 5 : 16-Jan-18

Tony and Christina Quinn have sold the Darrell Lea confectionery business to Quadrant Private Equity in a deal worth $A200m. The couple, who acquired Darrell Lea from administrators in 2012, previously sold VIP Pet Foods to the private equity firm in 2015. Quadrant has flagged plans to expand the Darrell Lea brand in Australia and offshore. Darrell Lea booked an after-tax profit of $A8.75m in 2016-17, with revenue of $A81.2m.

CORPORATES
DARRELL LEA CONFECTIONERY COMPANY PTY LTD, QUADRANT PRIVATE EQUITY PTY LTD, VIP PET FOODS

Nestle sells Violet Crumble back into Australian hands

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Original article by Misa Han
The Australian Financial Review – Page: 3 : 12-Jan-18

Adelaide-based confectionery maker Robern Menz will hire an additional 30 workers after buying the iconic Violet Crumble brand from Swiss multinational Nestle for an undisclosed sum. Robern Menz CEO Phil Sims says Nestle approached his company about buying the brand in early 2017, adding that Nestle’s focus is on global brands rather than Australian ones. Production of Violet Crumble chocolate bars will shift from Melbourne to Adelaide.

CORPORATES
ROBERN MENZ GROUP, NESTLE SA, BEGA CHEESE LIMITED – ASX BGA, MONDELEZ INTERNATIONAL INCORPORATED, SOUTH AUSTRALIA. DEPT OF STATE DEVELOPMENT. INVESTMENT ATTRACTION SOUTH AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, CADBURY CONFECTIONERY LIMITED

Hutchy’s merger with radio network

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Original article by Dana McCauley
The Australian – Page: 18 : 9-Jan-18

Australian-listed Pacific Star Networks has revealed plans to merge with TV and radio sports content group Crocmedia, which was co-founded by sports broadcaster Craig Hutchison. Crocmedia currently supplies content to Pacific Star Network’s sports-focused radio station in Melbourne, 1116 SEN. Hutchison will become CEO and MD of Pacific Star Network if the merger is approved by shareholders in March.

CORPORATES
PACIFIC STAR NETWORK LIMITED – ASX PNW, CROCMEDIA PTY LTD, SEN 1116 AM

Mumbrella now US owned after $8m sale

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Original article by Dana McCauley
The Australian – Page: 23 : 23-Dec-17

US firm Diversified Communications has acquired Mumbrella for an undisclosed amount. Tim Burrowes, who co-founded the marketing and media website in 2008, said he planned to continue in his role as content director, and that the price that Diversified Communications had paid for Mumbrella was "good", but not enough to take early retirement on. Mumbrella generated revenue of $A7 million in 2016-17, allowing it to make its first $A1 million profit, and it is believed Diversified Communications paid around $A8 million for it. Mumbrella makes most of its money from trade shows, and Burrowes says Diversified Communication’s ownership of it will help it to grow that side of its business.

CORPORATES
MUMBRELLA, DIVERSIFIED COMMUNICATIONS

Gupta buys NSW coal mine from Glencore

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Original article by James Thomson
The Australian Financial Review – Page: 14 : 3-Jan-18

Sanjeev Gupta’s GFG Alliance has acquired Glencore’s Tahmoor coal mine in New South Wales for an undisclosed sum, although the mine’s value is reckoned to be around $A500 million. Coal from the mine will support Gupta’s steelmaking operations in South Australia, with Gupta having acquired the assets of failed steelmaker Arrium, including its Whyalla steelworks, in August 2017. Tahmoor produces around two million tonnes of coal per annum, most of which is used for steelmaking.

CORPORATES
GFG ALLIANCE, GLENCORE AUSTRALIA PTY LTD, YANCOAL AUSTRALIA LIMITED – ASX YAL, RIO TINTO LIMITED – ASX RIO, COAL AND ALLIED INDUSTRIES LIMITED, LIBERTY HOUSE GROUP, SIMEC, ZEN ENERGY PTY LTD

Investors set to profit from Aconex sale

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Original article by Yolanda Redrup
The Australian Financial Review – Page: 16 : 20-Dec-17

Aconex founders Leigh Jasper and Rob Phillpot are not the only ones who will do well out of Oracle’s $A1.6 billion bid for the construction software firm. Aconex chairman Adam Lewis and his family should gain around $15.4 million from the transaction, while the Sypkes family, who started the Tasmania-based Chickenfeed discount chain, stand to receive about $A27.2 million. Jasper and Phillpot should get about $A94 million and $A88 million respectively if Aconex shareholders approve Oracle’s bid.

CORPORATES
ACONEX LIMITED – ASX ACX, ORACLE CORPORATION, CHICKENFEED PTY LTD, ATLASSIAN CORPORATION PLC, AUSTRALIAN DISCOUNT RETAIL PTY LTD, SPARK INFRASTRUCTURE GROUP – ASX SKI, McKINSEY AND COMPANY, UNIVERSITY OF MELBOURNE, APIAM ANIMAL HEALTH LIMITED – ASX AHX, MELBOURNE CRICKET CLUB, CITI AUSTRALIA PTY LTD, TEXTURA AUSTRALASIA PTY LTD, SAP AG

Sky News at centre of Foxtel tussle over fees

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Original article by Dana McCauley
The Australian – Page: 15 : 20-Dec-17

The proposed merger between Foxtel and Fox Sports is in doubt due to a dispute between Foxtel’s joint owners over carriage fees for Sky News. Foxtel currently pays about $A30m a year to broadcast the news channel, but Sky News owner News Corp is seeking an increase in this fee. Foxtel’s 50 per cent owner Telstra has signalled that it is open to an increase in the carriage fee, but its proposed increase is lower than that sought by News Corp. The merger between Foxtel and Fox Sports recently gained regulatory approval.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FOXTEL MANAGEMENT PTY LTD, FOX SPORTS AUSTRALIA PTY LTD, SKY NEWS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, SEVEN NETWORK LIMITED, NINE NETWORK AUSTRALIA LIMITED, SKY PLC

Late splurge sparks hopes for 2018 M&A

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 15 & 20 : 18-Dec-17

Data from Dealogic shows that $US86.9 billion worth of mergers and acquisitions had been announced in Australia as at 15 December 2017, which is 3.8 per cent lower than at the same time in 2016. Likewise, the value of announced M&A deals globally has fallen by 4.6 per cent to $US3.5 trillion. However, Nick Sims of Goldman Sachs notes that there has been an upturn in M&A activity in Australia and globally during the December quarter, which is expected to continue in 2018. Meanwhile, the total value of offshore acquisitions made by Australian companies has risen by 75 per cent so far in 2017, to $US26.3 billion.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, GOLDMAN SACHS AUSTRALIA PTY LTD, MACQUARIE CAPITAL PTY LTD, WESTFIELD CORPORATION – ASX WFD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AWE LIMITED – ASX AWE, INTEGRAL DIAGNOSTICS LIMITED – ASX IDX, SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, 21ST CENTURY FOX INCORPORATED, WALT DISNEY COMPANY, CVS HEALTH CORPORATION, AETNA INSURANCE COMPANY, HERBERT SMITH FREEHILLS PTY LTD, NUFARM LIMITED – ASX NUF, LINK ADMINISTRATION HOLDINGS LIMITED – ASX LNK

Failed BP deal won’t hit Woolworths’ refit plans

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 15-Dec-17

The Australian Competition & Consumer Commission has blocked the sale of Woolworths’ fuel business to BP on the grounds that it would likely push up petrol prices and reduce competition. Woolworths CEO Brad Banducci said he was disappointed by the ACCC’s decision. Woolworths was due to receive $A1.8 billion if the transaction had gone ahead, with some of the funds expected to be used on an upgrade of Woolworths’ supermarkets. Banducci said the ACCC’s decision should not impact on any refurbishment program.

CORPORATES
WOOLWORTHS GROUP LIMITED – ASX WOW, BP AUSTRALIA LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, UBS HOLDINGS PTY LTD, SHERPA, YELLO, COLES SUPERMARKETS AUSTRALIA PTY LTD, AIRTASKER PTY LTD, AMAZON.COM INCORPORATED