Goldman upbeat on local M&A activity

Original article by Carrie LaFrenz
The Australian Financial Review – Page: 16 : 28-Nov-16

Data from Dealogic shows that $US98.54bn ($A132.44bn) worth of mergers and acquisitions have been announced in Australia so far in 2016. Olivia Brown and Marissa Freund of Goldman Sachs are bullish about the outlook for M&A deals, and forecast strong activity in sectors such as healthcare, technology and retail. Freund expects strong interest in local companies from suitors in Asia, North America and Europe. Brown anticipates that Chinese companies will continue to be attracted to sectors that have export potential, such as consumer products and healthcare.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, AUSGRID PTY LTD, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, TABCORP HOLDINGS LIMITED – ASX TAH, TATTS GROUP LIMITED – ASX TTS, BORAL LIMITED – ASX BLD, HEADWATERS INCORPORATED, OIL SEARCH LIMITED – ASX OSH, INTEROIL CORPORATION, PACIFIC BRANDS LIMITED, HANESBRANDS, UGL LIMITED – ASX UGL, CIMIC GROUP LIMITED – ASX CIM, KATHMANDU HOLDINGS LIMITED – ASX KMD, BRISCOE GROUP LIMITED, LAZARD ASSET MANAGEMENT LIMITED

Bauer taps Seven over Pac Mags

Original article by Jake Mitchell
The Australian – Page: 23 : 28-Nov-16

Bauer Media Australia is said to have made an unsolicited offer earlier in 2016 to acquire the Pacific Magazines division of Seven West Media. However, the two groups are not believed to be discussing a potential deal at present. Pacific Magazines has discontinued or sold several magazine titles in 2016, while Bauer has discontinued a number of titles since it acquired ACP Magazines in 2013. Bauer Media CEO Nick Chan has previously been CEO of Pacific Magazines.

CORPORATES
BAUER MEDIA AUSTRALIA PTY LTD, BAUER MEDIA KG, PACIFIC MAGAZINES PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN NETWORK LIMITED, WEST AUSTRALIAN NEWSPAPERS HOLDINGS LIMITED, YAHOO! INCORPORATED, SMI MEDIA INCORPORATED, NEXTMEDIA PTY LTD, NOVA ENTERTAINMENT PTY LTD, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL

Content the future for telcos: media bosses

Original article by Max Mason
The Australian Financial Review – Page: 11 & 14 : 25-Oct-16

Seven West Media CEO Tim Worner says A&T’s proposed acquisition of Time Warner has major implications for both telcos and media companies. He believes that more deals of this nature are possible, noting the growing importance of content to telcos. Southern Cross Media Group CEO Grant Blackley says such deals could occur in Australia, and points out that under current media ownership laws his company could be acquired by Telstra but it could not merge with Fairfax Media.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, TIME WARNER INCORPORATED, AT&T CORPORATION, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, TELSTRA CORPORATION LIMITED – ASX TLS, FAIRFAX MEDIA LIMITED – ASX FXJ, TEN NETWORK HOLDINGS LIMITED – ASX TEN, PRIME MEDIA GROUP LIMITED – ASX PRT, SINGTEL OPTUS PTY LTD, SINGAPORE TELECOMMUNICATIONS LIMITED, ENGLISH PREMIER LEAGUE, FOXTEL MANAGEMENT PTY LTD, FOX SPORTS AUSTRALIA PTY LTD, BEIN SPORTS, THE A LEAGUE PTY LTD, CRICKET AUSTRALIA, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, AUSTRALIAN FOOTBALL LEAGUE, NATIONAL RUGBY LEAGUE, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, TPG TELECOM LIMITED – ASX TPM, VODAFONE AUSTRALIA LIMITED

Tabcorp-Tatts double up with $11bn punt

Original article by Sarah-Jane Tasker
The Australian – Page: 19 & 22 : 20-Oct-16

Tabcorp’s takeover offer for Tatts Group comprises 0.80 of its shares and a $A042.5 cash payment for each of the target’s shares. Tatts shareholders will control 58 per cent of the merged company if the deal is approved. It has been endorsed by the boards of both companies, as well as major institutional investors such as Perpetual and AustralianSuper. The merged group would boast a market capitalisation of about $A8.6bn and annual revenue of more than $A5bn. Tabcorp CEO David Attenborough would head the merged company.

CORPORATES
TABCORP HOLDINGS LIMITED – ASX TAH, TATTS GROUP LIMITED – ASX TTS, PERPETUAL LIMITED – ASX PPT, AUSTRALIANSUPER PTY LTD, NORTHCAPE CAPITAL PTY LTD

Tatts, Tabcorp bet on $9.4bn link

Original article by Sarah-Jane Tasker
The Australian – Page: 19 & 22 : 19-Oct-16

Shares in gaming giants Tabcorp Holdings and Tatts Group were placed in trading halts on 18 October 2016, pending an announcement on a potential scheme of arrangement merger. A merged entity would have a market capitalisation of around $A9.4bn and boast annual synergies of about $A100m. It would also be in a stronger position to pursue growth via offshore acquisitions. The two groups shelved a "merger of equals" proposal in 2015 after failing to reach agreement on valuations.

CORPORATES
TABCORP HOLDINGS LIMITED – ASX TAH, TATTS GROUP LIMITED – ASX TTS, UBET, DEUTSCHE BANK AG, SUN BETS, NEWS CORPORATION – ASX NWS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Red flags to watch for in M&A season

Original article by Vanessa Desloires
The Australian Financial Review – Page: 16 : 18-Oct-16

Data from Mergermarket shows that the value of mergers and acquisitions fell by 20 per cent globally in the first nine months of 2016, to $US2.2trn ($A2.9trn). M&A activity in Australia is rising as the end of the calendar year approaches. Anthony Aboud of Perpetual has identified a number of factors which may indicate that a company is making acquisitions for the wrong reasons. These include pursuing deals solely in the interests of diversification, paying too much for goodwill and making acquisitions that are motivated by financial incentives.

CORPORATES
PERPETUAL LIMITED – ASX PPT, MERGERMARKET LIMITED, CIMIC GROUP LIMITED – ASX CIM, UGL LIMITED – ASX UGL, JB HI-FI LIMITED – ASX JBH, THE GOOD GUYS, FANTASTIC HOLDINGS LIMITED – ASX FAN, STEINHOFF INTERNATIONAL HOLDINGS LIMITED, FREEDOM FURNITURE, SNOOZE SLEEP WELL PTY LTD, THE GOLDMAN SACHS GROUP INCORPORATED, SLATER AND GORDON LIMITED – ASX SGH, QUINDELL PLC, PERPETUAL’S SHARE-PLUS LONG SHORT FUND

Seven West to offload its stake in Sky News

Original article by Jake Mitchell
The Australian – Page: 19 & 31 : 14-Oct-16

News Corporation is expected to finalise the acquisition of Sky News Australia owner Australian News Channel in coming days. ACN is owned by Seven West Media, Nine Entertainment Company and UK-based Sky. News Corp initially launched a $A25m bid for ACN in February 2015, although Seven rejected the offer and favoured operating Sky News as a joint venture with News Corp. Seven has now agreed to accept the takeover offer for ACN, whose 2015-16 profit fell by 19 per cent to $A6.9m.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, SKY NEWS, AUSTRALIAN NEWS CHANNEL PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SKY PLC, FOX SPORTS AUSTRALIA PTY LTD, NATIONAL RUGBY LEAGUE, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Ichthys key to CIMIC bid for UGL

Original article by James Thomson
The Australian Financial Review – Page: 15/20 : 11-Oct-16

Shares in listed engineering contractor UGL closed 48.6 per cent higher at $A3.18 on 10 October 2016, in response to a takeover bid from CIMIC Group. The cash offer of $A3.15 per share values the bid at $A524m, but Allan Gray Australia MD Simon Mawhinney argues that it will be difficult to assess the bid until UGL updates investors on its Ichthys LNG contracts. UGL’s 2015-16 financial accounts included a provision of $US200m associated with its Ichthys construction contracts.

CORPORATES
UGL LIMITED – ASX UGL, CIMIC GROUP LIMITED – ASX CIM, ALLAN GRAY AUSTRALIA PTY LTD, CITIGROUP PTY LTD, HOCHTIEF AG, GRUPO ACS, MACQUARIE GROUP LIMITED – ASX MQG, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, UBIQUE ASSET MANAGEMENT PTY LTD, DEVINE LIMITED – ASX DVN, SEDGMAN LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Fortescue buys Nullagine mine for $1

Original article by Tess Ingram
The Australian Financial Review – Page: 18 : 11-Oct-16

BC Iron will sell its stake in the Nullagine iron ore mine in Western Australia to Fortescue Metals Group. The transaction comprises a token sum of $A1 plus a royalty on 75 per cent of future iron ore production. BC Iron initially sold a 50 per cent stake in the Nullagine mine to Fortescue in 2009, before repurchasing 25 per cent of Fortescue’s stake in 2012. Production at Nullagine was put on hold in late 2015 in response to a downturn in the iron ore price. It is estimated that keeping the mine in "care and maintenance" mode costs at least $A150,00 each month.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BC IRON LIMITED – ASX BCI, UBS HOLDINGS PTY LTD

News adds racing site to stable

Original article by Darren Davidson
The Australian – Page: 21 : 6-Oct-16

Media giant News Corp Australia will increase its exposure to the wagering industry with the acquisition of punters.com.au. The website features horse racing news and a free digital form guide, and boasts some 375,000 unique visitors each month. The British division of News Corporation established a wagering joint venture with Tabcorp earlier in 2016.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, PUNTERS.COM.AU, SUNBETS, TABCORP HOLDINGS LIMITED – ASX TAH