MERGERS AND ACQUISITIONS – AUSTRALIA

PE, capital flows bolster local M&A prospects

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 13 & 17 : 20-Jun-17

Data from Dealogic shows that $US44.1bn ($A57.9bn) worth of Australian mergers and acquisitions have been announced so far in 2017. This is 52 per cent higher than at the same time in 2016, and market watchers anticipate that M&A activity will remain strong in the second half of the year. Kate Towey of law firm Allens says overseas investors regard the Australian market as stable and attractive, while Alex Cartel of Deutsche Bank expects shareholder activism to have an increasing influence on the local market.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, ALLENS, DEUTSCHE BANK AG, TATTS GROUP LIMITED – ASX TTS, TABCORP HOLDINGS LIMITED – ASX TAH, ENDEAVOUR ENERGY LIMITED, ALINTA ENERGY (AUSTRALIA) PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, KKR AND COMPANY LP, VOCUS GROUP LIMITED – ASX VOC, PLATINUM EQUITY HOLDINGS, STAPLES AUSTRALIA PTY LTD, OFFICEMAX INCORPORATED, BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, JOHNSON AND JOHNSON, ACTELION, AMAZON.COM INCORPORATED, WHOLE FOODS MARKET INCORPORATED, MINTER ELLISON, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Fairfax digs in over Singleton bid

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Original article by Mitchell Bingemann
The Australian – Page: 19 : 20-Jun-17

Fairfax Media will not allow businessmen John Singleton and Mark Carnegie to undertake due diligence on Macquarie Media, in which it holds a 54.5 per cent stake. Singleton and Carnegie, who collectively own more than 40 per cent of Macquarie, recently advised Fairfax that they are keen to acquire the radio stations group. Fairfax suitors TPG Capital and Hellman & Friedman are primarily interested in the target’s Domain property listings business.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, MACQUARIE MEDIA LIMITED – ASX MRN, TPG CAPITAL LP, HELLMAN AND FRIEDMAN, DOMAIN.COM.AU, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Formal bids for Fairfax due in next fortnight with Domain the target

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Original article by Max Mason
The Australian Financial Review – Page: 15 : 19-Jun-17

Hellman & Friedman and TPG Capital may seek more time to undertake due diligence on Fairfax Media, although they may submit formal bids by the end of June. Fairfax has also advised that businessmen John Singleton and Mark Carnegie have expressed interest in acquiring its controlling stake in radio stations owner Macquarie Media. They had previously made an approach to buy Fairfax’s radio assets in 2012.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, HELLMAN AND FRIEDMAN, TPG CAPITAL LP, MACQUARIE MEDIA LIMITED – ASX MRN, 2GB, 3AW SOUTHERN CROSS RADIO PTY LTD, DOMAIN.COM.AU, CREDIT SUISSE (AUSTRALIA) LIMITED, GILBERT AND TOBIN LAWYERS, MACQUARIE CAPITAL PTY LTD, HERBERT SMITH FREEHILLS PTY LTD, KING AND WOOD MALLESONS, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, STAN ENTERTAINMENT PTY LTD

Glencore chief pitches Hunter Valley plan to Rio Tinto bosses

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Original article by Scott Murdoch
The Australian – Page: 17 : 19-Jun-17

Rio Tinto will shortly decide which of two rival bids for its Hunter Valley coal assets it will support. Glencore has offered $US2.55bn ($A3.35bn) for the Coal & Allied assets, compared with a $US2.45bn offer from China-backed Yancoal. A team of Glencore executives led by global CEO Peter Freyberg held talks with Rio Tinto executives on the weekend of 17-18 June regarding the bid. Glencore expects significant synergies by combining the Rio assets with its existing coal mines in the Hunter Valley.

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, YANCOAL AUSTRALIA LIMITED – ASX YAL, COAL AND ALLIED INDUSTRIES LIMITED, YANZHOU COAL MINING COMPANY LIMITED, PORT WARATAH COAL SERVICES LIMITED

Credit Suisse chief’s cautionary IPO tale

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 17 : 5-Jun-17

Some high-profile IPOs in Australia have been withdrawn in 2017, and Credit Suisse John Knox says the market needs some successful IPOs in order to boost float activity. He adds that private equity firms are unlikely to be behind the majority of IPOs in the near-term. Knox is upbeat about the outlook for mergers and acquisitions activity during the remainder of 2017, while he has welcomed a move by the Foreign Investment Review Board to provide greater clarity regarding offshore bidders.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, OFFICEWORKS SUPERSTORES PTY LTD, WESFARMERS LIMITED – ASX WES, ZIP INDUSTRIES AUSTRALIA, ALINTA ENERGY (AUSTRALIA) PTY LTD, CHOW TAI FOOK ENTERPRISES LIMITED, ICON GROUP, QIC LIMITED, GOLDMAN SACHS PRIVATE EQUITY, PAGODA INVESTMENTS, TPG CAPITAL LP, FAIRFAX MEDIA LIMITED – ASX FXJ, DEALOGIC (AUSTRALIA) PTY LTD, AMAZON.COM INCORPORATED

Australians say ‘No’ to 100% foreign ownership of Fairfax

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 26-May-17

An Australia-wide Roy Morgan Survey has found that 78% of Australians aged 14+ do not want Fairfax Media to be 100% owned by either of the two overseas owned institutions that have lodged multi-billion dollar bids for the company. Meanwhile, 17% of Australians say that overseas-owned institutions should be allowed to buy Fairfax outright. The survey, which was conducted from 22-24 May 2017, also shows that 53% of Australians are in favour of allowing overseas-based institutions to own a minority stake in Fairfax. A larger majority of L-NP supporters (59%) are in favour of this option for Fairfax than ALP supporters (51%). The survey has also found that the internet is now the main source of information for 51% of Australians, compared to 24% for TV and 12% for both newspapers and radio.

CORPORATES
ROY MORGAN RESEARCH LIMITED, FAIRFAX MEDIA LIMITED – ASX FXJ, TPG CAPITAL LP, HELLMAN AND FRIEDMAN

Second bid pleases Fairfax shareholders

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Original article by Max Mason
The Australian Financial Review – Page: 31 : 22-May-17

Dealogic notes that the two rival bids for Fairfax Media are the largest takeover offers for any publisher worldwide so far in 2017. Allan Gray Australia MD Simon Mawhinney has welcomed Fairfax’s decision to allow TPG Capital and Hellman & Friedman to undertake due diligence. However, neither suitor is likely to make a formal bid before 30 June. TPG Australia boss Joel Thickins has told a Senate committee that the private equity firm will expand the Fairfax business and retain its charter of editorial independence.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, TPG CAPITAL LP, HELLMAN AND FRIEDMAN, ONTARIO TEACHERS’ PENSION PLAN, ALLAN GRAY AUSTRALIA PTY LTD, CONTANGO ASSET MANAGEMENT LIMITED – ASX CGA, MARTIN CURRIE INVESTMENT MANAGEMENT LIMITED, MACQUARIE CAPITAL PTY LTD, DOMAIN.COM.AU

TPG bid ‘cherry-picks’ Fairfax assets

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Original article by Max Mason, Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 1 & 14 : 9-May-17

Legg Mason Martin Currie’s Patrick Potts says TPG Capital should make a takeover offer for all of Fairfax Media’s assets. TPG and the Ontario Teachers’ Pension Plan have made an indicative offer of $A0.95 per share for the Domain property listings business, Fairfax’s three flagship newspapers, and its events and digital ventures. Potts believes the $A2.2bn offer undervalues the assets that the TPG-led consortium wants to buy, while he adds that Fairfax shareholders would be left with "structurally challenged assets" whose value is difficult to determine.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, TPG CAPITAL LP, ONTARIO TEACHERS’ PENSION PLAN, DOMAIN.COM.AU, LEGG MASON MARTIN CURRIE, THORNEY INVESTMENT GROUP AUSTRALIA PTY LTD, ALLURE MEDIA PTY LTD, THE HUFFINGTON POST, MACQUARIE MEDIA LIMITED – ASX MRN, STAN ENTERTAINMENT PTY LTD, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, DEUTSCHE BANK AG, FAIRFAX NEW ZEALAND LIMITED, NZME LIMITED – ASX NZM, NEW ZEALAND. COMMERCE COMMISSION, PLATINUM EQUITY HOLDINGS, APN NEWS AND MEDIA LIMITED – ASX APN, FETCH PLUS INCORPORATED PTE LTD

ACCC concerned about oOh!media merger plan

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Original article by Max Mason
The Australian Financial Review – Page: 30 : 5-May-17

The Australian Competition & Consumer Commission is scheduled to make a final decision on the proposed merger between oOh!media and APN Outdoor on 6 July. However, the ACCC’s statement of issues indicates that the regulator has concerns that the $A1.6bn deal would reduce competition in the out-of-home advertising sector. ACCC chairman Rod Simms notes that the combined entity would control more than 50 per cent of this market.

CORPORATES
OOH!MEDIA LIMITED – ASX OML, APN OUTDOOR GROUP LIMITED – ASX APO, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, APN NEWS AND MEDIA LIMITED – ASX APN

Murdoch holds the key to re-shaping television

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Original article by Aaron Patrick, Max Mason
The Australian Financial Review – Page: 36 & 37 : 1-May-17

Ten Network’s market capitalisation has slumped to just $A99.7m in the wake of a recent profit warning. The 7.7 per cent stake held by News Corporation’s co-chairman Lachlan Murdoch is now worth just $A7.7m, and there is speculation that News Corp ultimately wants to acquire the struggling TV network. Ten is seeking to renegotiate or terminate its content deals with CBS and 21st Century Fox, amid declining viewership of US TV shows in Australia. Ten also faces a deadline to repay or roll over a loan facility that has been guaranteed by Murdoch, James Packer and Bruce Gordon.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, NEWS CORPORATION – ASX NWS, NEWS CORP AUSTRALIA PTY LTD, FOXTEL MANAGEMENT PTY LTD, NOVA ENTERTAINMENT PTY LTD, CBS CORPORATION, 21ST CENTURY FOX INCORPORATED, CITIGROUP PTY LTD, WIN CORPORATION PTY LTD, NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD, YOUTUBE INCORPORATED, INSTAGRAM LLC, DISCOVERY COMMUNICATIONS INCORPORATED, REA GROUP LIMITED – ASX REA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, CCZ STATTON EQUITIES PTY LTD, ITV NETWORK LIMITED, McKINSEY AND COMPANY, PROSIEBENSAT.1 MEDIA AG