MERGERS AND ACQUISITIONS – AUSTRALIA

Expansion takes REA into mortgage broking

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Original article by Michael Roddan
The Australian – Page: 21 : 28-Jun-17

Australian-listed REA Group will pay $A67m for an 80 per cent stake in mortgage broker Smartline. REA, which owns the realestate.com.au property listings business, has also established a partnership with National Australia Bank to provide mortgage broking services and realestate.com.au-branded home loans. REA forecasts that the acquisition of Smartline and the alliance with NAB will boost group revenue by $A26m to $A30m in fiscal 2018.

CORPORATES
REA GROUP LIMITED – ASX REA, REALESTATE.COM.AU, SMARTLINE HOME LOANS PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, CHOICE HOME LOANS

Tribunal dismisses concerns in Tab deal

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Original article by John Stensholt
The Australian Financial Review – Page: 20 : 23-Jun-17

The Australian Competition Tribunal, which approved Tabcorp’s $A11 billion merger with Tatts Group on 20 June 2017, has published in full the reasons for its decision. The tribunal has rejected claims by Racing.com that it would be placed in crisis if conditions were not imposed on the merged entity when bidding for future broadcasting rights. The tribunal also did not believe the Australian Competition & Consumer Commission’s view that allowing the merger to proceed would reduce competitive bidding for the next wagering licence in Victoria.

CORPORATES
TABCORP HOLDINGS LIMITED – ASX TAH, TATTS GROUP LIMITED – ASX TTS, AUSTRALIA. COMPETITION TRIBUNAL, RACING.COM, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, RACING VICTORIA LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, ODYSSEY GAMING LIMITED

ACCC bypass comes up trumps for Tabcorp

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Original article by John Stensholt
The Australian Financial Review – Page: 15 & 20 : 21-Jun-17

The Australian Competition Tribunal has cleared the proposed $A11bn merger of gambling giants Tabcorp Holdings and Tatts Group. Tribunal president Justice John Middleton rejected the Australian Competition & Consumer Commission’s concerns about the impact on competition, arguing that the merger will result in significant benefits for the public. However, he has stipulated that Tabcorp must proceed with the sale of Odyssey Gaming Services. Tabcorp hopes to finalise the merger by September.

CORPORATES
TABCORP HOLDINGS LIMITED – ASX TAH, TATTS GROUP LIMITED – ASX TTS, AUSTRALIA. COMPETITION TRIBUNAL, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, CROWNBET PTY LTD, RACING.COM, RACING VICTORIA LIMITED, NEWS CORPORATION – ASX NWS, SUN BETS

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