MERGERS AND ACQUISITIONS – AUSTRALIA

Growthpoint near victory with GPT bid

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Original article by Nick Lenaghan
The Australian Financial Review – Page: 29 : 2-Aug-16

The GPT Metro Office Fund’s independent directors have expressed their support for a takeover offer from Growthpoint, which was judged to be superior to a rival bid from Centuria. Consequently, the latter decided against pursuing its bid. Investors in the GPT Metro fund can choose to receive either $A1.25 in cash and 0.3968 Growthpoint securities for each unit they hold or a cash offer of around $A2.50 per unit.

CORPORATES
GPT METRO OFFICE FUND – ASX GMF, CENTURIA METROPOLITAN REIT – ASX CMA, GROWTHPOINT PROPERTIES AUSTRALIA – ASX GOZ, GROWTHPOINT PROPERTIES LIMITED

‘Plenty of life’ in the gold dog yet

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Original article by Paul Garvey
The Australian – Page: 22 : 2-Aug-16

The share prices of Australian gold producers have rallied in the last year, prompting speculation as to whether the gains are sustainable. Saracen Mineral Holdings MD Raleigh Finlayson has indicated that a fall in the gold price could create buying opportunities for the group, while Doray Minerals is seeking offshore acquisitions due to the high price of local gold assets and the dearth of quality projects up for sale. The outlook for the gold sector will be under scrutiny at the annual Diggers & Dealers conference in Western Australia.

CORPORATES
SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, DORAY MINERALS LIMITED – ASX DRM, DIGGERS AND DEALERS FORUM, NORTHERN STAR RESOURCES LIMITED – ASX NST, ST BARBARA LIMITED – ASX SBM

Ratings agencies demand debt before acquisitions for BHP

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Original article by Peter Ker
The Australian Financial Review – Page: 15 & 20 : 27-Jul-16

Matthew Moore of credit ratings agency Moody’s says BHP Billiton should give priority to reducing its debt rather than pursuing acquisitions. May Zhong of Standard & Poor’s agrees, arguing that BHP should allocate a significant proportion of its free discretionary cashflow over the next year to reducing debt. Zhong adds that any acquisitions should comprise commodities that it already produces. BHP is among the bidders for Anglo American’s coking coal assets in Queensland.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S CORPORATION, ANGLO AMERICAN PLC, RIO TINTO LIMITED – ASX RIO, MITSUBISHI CORPORATION

Market backs BHP’s bid to buy Anglo coal

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Original article by James Thomson
The Australian Financial Review – Page: 13 & 18 : 25-Jul-16

BHP Billiton has declined to comment on speculation that it is poised to acquire Anglo American’s coal assets in Queensland, with the auction process nearing its end. BHP is said to be the only remaining bidder for the assets, which initially attracted interest from companies such as Glencore and Yancoal. The Anglo American assets include the Moranbah North and Grosvenor metallurgical coal mines, and some market analysts say the deal should generate significant synergies for BHP.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ANGLO AMERICAN PLC, GLENCORE PLC, YANCOAL AUSTRALIA LIMITED – ASX YAL, AMERICAN METALS AND COAL INTERNATIONAL INCORPORATED, XCOAL ENERGY AND RESOURCES LLC, BM ALLIANCE COAL OPERATIONS PTY LTD, MITSUBISHI CORPORATION, SHAW AND PARTNERS LIMITED, TRIBECA GLOBAL NATURAL RESOURCES FUND, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, UBS HOLDINGS PTY LTD

Oil Search could be crushed in InterOil battle

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 20 : 15-Jul-16

Proxy adviser ISS has endorsed Oil Search’s $US2.2bn takeover bid for InterOil, with the target’s shareholders scheduled to vote on the deal on 26 July 2016. However, ExxonMobil is believed to be poised to outbid Oil Search with an offer that is about 10 per cent higher. ExxonMobil – which is Oil Search’s partner in the Papua New Guinea LNG project – has not been officially confirmed as the rival suitor for InterOil.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, INTEROIL CORPORATION, EXXONMOBIL CORPORATION, TOTAL SA, INSTITUTIONAL SHAREHOLDER SERVICES INCORPORATED

APN Outdoor buys Metrospace, iOM

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Original article by Max Mason, Sarah Thompson
The Australian Financial Review – Page: 20 : 14-Jul-16

Australian-listed APN Outdoor will increase its presence in Queensland and Victoria with two acquisitions in the outdoor advertising sector. Metrospace boasts 110 outdoor advertising panels across Queensland, while iOM has 130 such sites in Victoria. They are expected to boost APN’s earnings by around $A13m in total. Australia’s out-of-home advertising sector boasted revenue of $A184.4m in the June 2016 quarter.

CORPORATES
APN OUTDOOR GROUP LIMITED – ASX APO, METROSPACE OUTDOOR ADVERTISING, IOM PTY LTD, OOH!MEDIA LIMITED – ASX OML, QMS MEDIA LIMITED – ASX QMS, VAL MORGAN OUTDOOR, HOYTS CINEMAS LIMITED, ACTIVE MEDIA GROUP PTY LTD, OAKTREE CAPITAL MANAGEMENT LLC, FITNESS FIRST AUSTRALIA PTY LTD, GOODLIFE HEALTH CLUBS, JUNKEE MEDIA PTY LTD, ADSPACE, INLINK, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, OUTDOOR MEDIA ASSOCIATION INCORPORATED

Oil Search sweetener needed for InterOil

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Original article by Angela Macdonald-Smith, Sarah Thompson
The Australian Financial Review – Page: 1 & 11 : 12-Jul-16

ExxonMobil is believed to be the unnamed company that is seeking to trump Oil Search’s $US2.2bn ($A2.9bn) takeover bid for InterOil. The target has commenced negotiations with the as-yet identified suitor, which made an initial approach in late June 2016, and is understood to have made a scrip-based offer that is 10 per cent higher than the Oil Search bid. All three players have exposure to Papua New Guinea’s LNG sector.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, INTEROIL CORPORATION, EXXONMOBIL CORPORATION, CITIGROUP PTY LTD, TOTAL SA

Chances for asset bargains rare: BHP CFO

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Original article by James Thomson
The Australian Financial Review – Page: 13 & 18 : 11-Jul-16

BHP Billiton’s CFO Peter Beaven says the resources giant is still on the lookout for mergers and acquisitions opportunities, but he stresses that such deals are not a priority. BHP is particularly interested in copper and petroleum assets, but Beaven acknowledges that there are limited opportunities to acquire quality assets at an appropriate price at present. Rio Tinto CEO Jean-Sebastian Jacques also recently indicated that the company will not pursue acquisitions that do not create value.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, CHINA MOLYBDENUM COMPANY LIMITED, BARRICK GOLD CORPORATION, ANTOFAGASTA PLC, SOUTH32 LIMITED – ASX S32

Rio Tinto sells shuttered coal mine for $1

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Original article by Peter Ker
The Australian Financial Review – Page: 14 : 5-Jul-16

Australian-listed TerraCom will pay just $A1 for Rio Tinto’s Blair Athol thermal coal mine in Queensland. The deal was Rio Tinto’s third attempt to divest the mine, which was mothballed in 2012. However, Rio Tinto will contribute to the cost of rehabilitating some 50 hectares of land that has already been mined at the site. TerraCom aims to resume production at the mine by the end of 2016.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TERRACOM LIMITED – ASX TER, LINC ENERGY LIMITED, BLAIR ATHOL COAL, J-POWER AUSTRALIA PTY LTD, JAPAN COAL DEVELOPMENT COMPANY, STANMORE COAL LIMITED – ASX SMR, VALE SA

Gold deals tipped to heat up in West Africa

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Original article by Tess Ingram
The Australian Financial Review – Page: 18 : 21-Jun-16

Shares in Australian-listed Gryphon Minerals finished 22.2 per cent higher at $A0.165 on 20 June 2016, in response to a takover bid from Teranga Gold. Both companies have gold projects in West Africa, and Scott Williamson of Hartleys anticipates further consolidation among gold players with a presence in the region. Duncan Hughes of Somers & Partners expects North American miners in particular to target West Africa-focused Australian gold producers.

CORPORATES
GRYPHON MINERALS LIMITED – ASX GRY, TERANGA GOLD CORPORATION – ASX TGZ, HARTLEYS LIMITED, SOMERS AND PARTNERS PTY LTD, PERSEUS MINING LIMITED – ASX PRU, AMARA MINING, ENDEAVOUR MINING CORPORATION, TRUE GOLD MINING, RESOLUTE MINING LIMITED – ASX RSG, WEST AFRICAN RESOURCES LIMITED – ASX WAF, CARDINAL RESOURCES LIMITED – ASX CDV