MERGERS AND ACQUISITIONS – AUSTRALIA

Administrators delay Ten report

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Original article by Darren Davidson
The Australian – Page: 22 : 1-Sep-17

Ten Network administrator KordaMentha has postponed the release of a report on the failed TV broadcaster until 4 September. The report was initially slated to be released on 31 August, and the delay will affect the timing of a creditors’ meeting. Ten’s shareholders will not recoup any of their investment if CBS Corporation buys Ten, which has prompted the Australian Shareholders’ Association to consider a class action on behalf of investors.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, KORDA MENTHA AND COLLEAGUES PTY LTD, CBS CORPORATION, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

No second TV option for News Corp

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Original article by Aaron Patrick, John Stensholt
The Australian Financial Review – Page: 15 : 30-Aug-17

The Australian Competition & Consumer Commission recently indicated that it would not oppose the acquisition of Ten Network by Lachlan Murdoch and Bruce Gordon. However, ACCC chairman Rod Sims said a similar deal to acquire Seven or Nine may not necessarily have been approved, given that their news bulletins have higher ratings than Ten. Media industry sources also suggest that any bid by News Corp to acquire one of Ten’s rivals would be blocked on competition grounds.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, NEWS CORPORATION – ASX NWS, FOXTEL MANAGEMENT PTY LTD, FOX SPORTS AUSTRALIA PTY LTD, SKY NEWS, MULTI CHANNEL NETWORK PTY LTD, NINE NETWORK AUSTRALIA LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN NETWORK LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, CBS CORPORATION, PPB ADVISORY, KORDA MENTHA AND COLLEAGUES PTY LTD, 21ST CENTURY FOX INCORPORATED, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN LABOR PARTY

CSL buys way into cell, gene therapy

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Original article by Sarah-Jane Tasker
The Australian – Page: 19 : 29-Aug-17

CSL has announced that it will spend $US91 million ($A114 million) on the purchase of US-based biotechnology company Calimmune. CSL executive Andrew Nash says the purchase of Calimmune gives it access to skills and technologies in the area of gene and cell-based therapies that it does not currently have. He said that CSL has had its eye on Calimmune, which has operations in both the US and Australia, for about a year.

CORPORATES
CSL LIMITED – ASX CSL, CALIMMUNE INCORPORATED

Yancoal’s $3 billion raising shunned

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Original article by Paul Garvey
The Australian – Page: 21 : 29-Aug-17

Institutional investors subscribed for only $US59m worth of shares in Yancoal Australia’s $US1.3bn entitlement offer, which is part of its $US2.35bn ($A3bn) capital raising to finance the acquisition of Rio Tinto’s New South Wales assets. The response to the retail component of the share offer was also subdued, with existing shareholders applying to buy just $US4m worth of shares. As a result, parent company Yanzhou Coal and the bookbuild’s underwriters will be required to meet the significant shortfall.

CORPORATES
YANCOAL AUSTRALIA LIMITED – ASX YAL, COAL AND ALLIED INDUSTRIES LIMITED, RIO TINTO LIMITED – ASX RIO, YANZHOU COAL MINING COMPANY LIMITED, CHINA SHANGDONG INVESTMENT COMPANY LIMITED, CINDA ASSET MANAGEMENT CORPORATION, GLENCORE PLC, WHITEHAVEN COAL LIMITED – ASX WHC, NOBLE GROUP LIMITED, CONTANGO ASSET MANAGEMENT LIMITED – ASX CGA, MERRILL LYNCH (AUSTRALIA) PTY LTD

Media laws gift Ten from News to CBS

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Original article by Max Mason
The Australian Financial Review – Page: 1 & 14 : 29-Aug-17

The deal for US-based CBS to acquire Ten Network will not require changes to cross-media ownership laws, unlike the rival bid from Lachlan Murdoch and Bruce Gordon. The deal only requires approval from Ten’s creditors, a court and the Foreign Investment Review Board. Federal Opposition Leader Bill Shorten says the deal means cross-media ownership reforms are not necessary. Fairfax Media CEO Greg Hywood rejects Shorten’s claim that the proposed media reforms were primarily aimed at saving Ten, arguing that they are intended to ensure that the local media sector remains competition in a changing media landscape.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, CBS CORPORATION, AUSTRALIAN LABOR PARTY, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, NEWS CORPORATION – ASX NWS, WIN CORPORATION PTY LTD, CBS ALL ACCESS, NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD, 21ST CENTURY FOX INCORPORATED, CANWEST GLOBAL COMMUNICATIONS CORPORATION, ONE NATION PARTY, AUSTRALIAN BROADCASTING CORPORATION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, KORDA MENTHA AND COLLEAGUES PTY LTD

Ten’s fate hinges on reform of media law

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Original article by Darren Davidson
The Australian – Page: 21 : 25-Aug-17

The Australian Competition & Consumer Commission has ruled that the acquisition of Ten Network by Lachlan Murdoch and Bruce Gordon would not result in a substantial lessening of competition. The ACCC took into account factors such as the growing use of streaming video-on-demand services and competition from rival free-to-air networks. However, Murdoch and Gordon cannot acquire Ten without cross-media ownership law reforms, although one option may be for them to each have a low voting stake in Ten but a high economic interest in the network.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, NEWS CORPORATION – ASX NWS, WIN CORPORATION PTY LTD, FOXTEL MANAGEMENT PTY LTD, NEWS CORP AUSTRALIA PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, NETFLIX INCORPORATED, OAKTREE CAPITAL MANAGEMENT LLC, PPB ADVISORY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NICK XENOPHON TEAM, FACEBOOK INCORPORATED, AMAZON.COM INCORPORATED

News Corp picks merger deal over Ten

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Original article by Max Mason
The Australian Financial Review – Page: 29 : 21-Aug-17

News Corp will increase its stake in Foxtel from 50 per cent to 65 per cent if a proposed merger between the pay-TV group and Fox Sports proceeds. This would make it harder for the joint venture between Lachlan Murdoch and Bruce Gordon to acquire the Ten Network, given that Murdoch is co-chairman of News Corp and the owner of Nova Entertainment. Murdoch and Gordon are said to have submitted a conditional bid for Ten, but they may be thwarted by the Federal Government’s failure to pass its media reform bill in the Senate. Offers to acquire Ten had to be submitted by 18 August.

CORPORATES
NEWS CORPORATION – ASX NWS, NEWS CORP AUSTRALIA PTY LTD, FOXTEL MANAGEMENT PTY LTD, FOX SPORTS AUSTRALIA PTY LTD, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NOVA ENTERTAINMENT PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, OAKTREE CAPITAL MANAGEMENT LLC, ANCHORAGE CAPITAL GROUP LLC, SKY NEWS, REA GROUP LIMITED – ASX REA, HT&E LIMITED – ASX HT1, MULTI CHANNEL NETWORK PTY LTD, BIRKETU PTY LTD, ILLYRIA NOMINEES TELEVISION PTY LTD, WIN CORPORATION PTY LTD

Telstra, News in Foxtel deal ahead of float

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Original article by Darren Davidson
The Australian – Page: 17 & 21 : 18-Aug-17

Telstra and News Corp aim to secure regulatory approval for a proposed merger of Foxtel and Fox Sports by April 2018. They each own 50 per cent of Foxtel at present, but Telstra would reduce its stake in the combined Foxtel-Fox Sports to 35 per cent if the deal proceeds. News Corp CEO Robert Thomson says the merger would unlock value for the media group, which would have a 65 per cent stake in Foxtel-Fox Sports. The deal would enhance Foxtel’s ability to bid for sports broadcasting rights amid growing competition.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS, FOXTEL MANAGEMENT PTY LTD, FOX SPORTS AUSTRALIA PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, ESPN INCORPORATED, BEIN SPORTS, SINGTEL OPTUS PTY LTD, ENGLISH PREMIER LEAGUE, NETFLIX INCORPORATED, AMAZON.COM INCORPORATED, YOUTUBE INCORPORATED, GOOGLE INCORPORATED, TWITTER INCORPORATED, FACEBOOK INCORPORATED, AUSTRALIAN FOOTBALL LEAGUE, NATIONAL RUGBY LEAGUE, NICK XENOPHON TEAM, 21ST CENTURY FOX INCORPORATED

CFMEU loss as bench rules code-compliant deal OK

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Original article by Ewin Hannan
The Australian – Page: 2 : 16-Aug-17

The Fair Work Commission has ruled that Lendlease Engineering’s enterprise bargaining agreement in New South Wales is valid. The Construction, Forestry, Mining & Energy Union had appealed against the FWC’s June 2017 decision to approve the EBA, which complies with the Federal Government’s building code. Employment Minister Michaelia Cash has urged the CFMEU to negotiate code-compliant EBAs. Cash also wants union mergers to be subject to a public-interest test.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIA. FAIR WORK COMMISSION, LEND LEASE GROUP LIMITED – ASX LLC, AUSTRALIA. DEPT OF EMPLOYMENT, MARITIME UNION OF AUSTRALIA, NATIONAL UNION OF WORKERS, UNITED VOICE, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, AUSTRALIAN LABOR PARTY, NICK XENOPHON TEAM, ONE NATION PARTY

Sandfire rolls the dice on growth

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Original article by Tess Ingram
The Australian Financial Review – Page: 15 : 14-Aug-17

The mine life of Sandfire Resources’ DeGrussa copper project in Western Australia will be extended until 2022 when it begins processing ore from the Monty deposit. However, Paul Howard of Hartleys estimates that Sandfire will need to make another significant discovery within 12 months due to the time it takes to begin production. Sandfire CEO Karl Simich has indicated that in addition to further exploration, the miner may be prepared to buy assets that do not usually meet its criteria in order to maintain production.

CORPORATES
SANDFIRE RESOURCES NL – ASX SFR, HARTLEYS LIMITED, TALISMAN MINING LIMITED – ASX TLM, GLENCORE PLC, TRAFIGURA BEHEER BV, DIGGERS AND DEALERS FORUM