MERGERS AND ACQUISITIONS – AUSTRALIA

BHP is poised to pounce: chief

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Original article by Barry FitzGerald
The Australian – Page: 19 & 20 : 12-Apr-16

BHP Billiton shareholders will receive interim dividends totalling $A848m after the group adopted a minimum payout ratio. Its half-year payout would have been about $A3.28bn if it had retained a progressive dividend policy. CEO Andrew Mackenzie says the change in policy means BHP has the capacity to undertake acquisitions if an appropriate opportunity arises. However, he adds that its focus will be on developing existing assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32

King & Wood Mallesons tops M&A table for first quarter

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Original article by Marianna Papadakis
The Australian Financial Review – Page: 3 : 8-Apr-16

King & Wood Mallesons has appeared at the top of the list of Australian law firms in terms of the value of mergers and acquisitions (M&A) in the first quarter of 2016, with about $US18.6 billion ($A24.5 billion) worth of deals. Other firms that handled a significant number of M&A deals included Gilbert + Tobin ($US17.3 billion), Allens ($US17.1 billion) and Herbert Smith Freehills ($US11.2 billion).

CORPORATES
KING AND WOOD MALLESONS, GILBERT AND TOBIN LAWYERS, ALLENS, HERBERT SMITH FREEHILLS PTY LTD

Go for gold with copper, Rio urged

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Original article by Amanda Saunders
The Australian Financial Review – Page: 19 : 6-Apr-16

Bernstein analyst Paul Gait says Rio Tinto should capitalise on the low price of copper and expectations of a supply deficit to pursue acquisitions in the sector. Gait has suggested that Freeport-McMoRan’s Cerro Verde copper mine in Peru should be at the top of the list of potential acquisitions when Jean-Sebastien Jacques succeeds Sam Walsh as CEO. Gait notes that Cerro Verde is a much higher-quality asset than some copper mines that have been sold recently.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BERNSTEIN AND ASSOCIATES, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, BHP BILLITON LIMITED – ASX BHP, WOOD MACKENZIE, MMG LIMITED – ASX MMG, ANTOFAGASTA PLC, SUMITOMO CORPORATION, COMPANIA DE MINAS BUENAVENTURA SA, ANGLO AMERICAN PLC, AUDLEY CAPITAL, FIRST QUANTUM MINERALS LIMITED, BOLIDEN MINERAL AB

Investors approve STW, WPP merger

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Original article by Max Mason
The Australian Financial Review – Page: 16 : 5-Apr-16

More than 99 per cent of STW Communications Group shareholders have endorsed a proposed merger with WPP Group’s Australian division. STW will change its name to WPP AUNZ and retain its Australian sharemarket listing. It will be headed by STW CEO Mike Connaghan, who has flagged an eventual reduction in the number of businesses owned by the combined group. It will boast revenue of about $A850m.

CORPORATES
STW COMMUNICATIONS GROUP LIMITED – ASX SGN, WPP GROUP PLC, SINGLETON, OGILVY AND MATHER HOLDINGS PTY LTD, CAVENDISH SQUARE

Marks’ roadshow moves suggest Nine contemplating a merger with Southern Cross

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Original article by Jake Mitchell
The Australian – Page: 23 : 4-Apr-16

A merger between Nine Entertainment Company and regional broadcaster Southern Cross Media Group is widely tipped if cross-media ownership reforms proceed. Nine CEO Hugh Marks indicated in March 2016 that the group had no plans to resume merger discussions. However, he is believed to have told investors that synergies from a merger with Southern Cross could be worth about $A90m annually.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, TEN NETWORK HOLDINGS LIMITED – ASX TEN, WIN CORPORATION PTY LTD, NBN TELEVISION, RGM ARTISTS PTY LTD, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, CREDIT SUISSE (AUSTRALIA) LIMITED

Global funds take aim at media

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Original article by Jake Mitchell
The Australian – Page: 19 & 22 : 1-Apr-16

UBS’s Justin Dwyer says the Australian Government’s proposed changes to cross-media ownership laws may prompt renewed interest in local media companies among their offshore peers and private equity firms. He suggests that companies which made offers to buy the Ten Network in 2015 could be among the potential suitors. Meanwhile, Greg Peirce of UBS says the media industry’s "structural challenges" may have more influence on merger activity in the sector than government reforms.

CORPORATES
UBS HOLDINGS PTY LTD, TEN NETWORK HOLDINGS LIMITED – ASX TEN, PROVIDENCE EQUITY PARTNERS INCORPORATED, DISCOVERY COMMUNICATIONS INCORPORATED, CREDIT SUISSE (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, DICK SMITH HOLDINGS LIMITED – ASX DSH, AUSTRALIA. SENATE STANDING COMMITTEE ON ENVIRONMENT, COMMUNICATIONS, INFORMATION TECHNOLOGY AND THE ARTS, THOMSON REUTERS PLC

Merged Foxtel, Fox Sports ‘easier’ to float

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Original article by Darren Davidson
The Australian – Page: 20 : 30-Mar-16

Credit ­Suisse media analyst Fraser McLeish says a proposed IPO for Foxtel would be more attractive to investors if the pay-TV group was merged with Fox Sports. McLeish estimates that a merged Foxtel-Fox Sports would boast an enterprise value of about $A8.5bn. Telstra and News Corp each own 50 per cent of Foxtel, and News Corp has full ownership of Fox Sports.

CORPORATES
FOXTEL MANAGEMENT PTY LTD, FOX SPORTS AUSTRALIA PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, DISCOVERY COMMUNICATIONS INCORPORATED, EUROSPORT

News move to increase stake in Foxtel will trigger ACCC interest

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Original article by Dominic White
The Australian Financial Review – Page: 25 : 23-Mar-16

News Corporation would have a 51 per cent stake in the merged Foxtel-Fox Sports if the deal and a proposed IPO of Telstra’s stake in Foxtel proceeds. A second option would be for News to buy out Telstra’s 50 per cent stake in Foxtel. Australian Competition & Consumer Commission chairman Rod Sims says any move by News to increase its stake in Foxtel would attract scrutiny. However, he notes that the media group already has significant influence at Foxtel.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FOXTEL MANAGEMENT PTY LTD, FOX SPORTS AUSTRALIA PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, SKY PLC, NETFLIX INCORPORATED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, CITIGROUP PTY LTD, AUSTRALIAN FOOTBALL LEAGUE, NATIONAL RUGBY LEAGUE

News, Telstra discuss Foxtel and Fox Sports merger

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Original article by Dominic White
The Australian Financial Review – Page: 18 : 21-Mar-16

Foxtel’s joint owners Telstra and News Corp may merge the pay-TV group with News Corp’s fully-owned Fox Sports. Telstra recently flagged plans to list 60 per cent of its stake in Foxtel on the sharemarket, and merging it with Fox Sports would make the IPO more attractive to investors. Foxtel’s EBITDA and revenue fell in 2015, while Fox Sports posted EBITDA and revenue of $US135m and $US500m respectively in 2014-15.

CORPORATES
FOXTEL MANAGEMENT PTY LTD, FOX SPORTS AUSTRALIA PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, NETFLIX INCORPORATED

Dick Smith customers get ‘opt-out’ offer

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 : 16-Mar-16

Kogan’s acquisition of Dick Smith Holdings’ online business includes a database of about one million members of its customer loyalty program. Ferrier Hodgson, acting as receivers and managers of Dick Smith, has advised the failed group’s customers that they must request the removal of their personal details from the database by 22 March 2016 if they do not want to receive offers from Kogan. The company’s founder, Ruslan Kogan, plans to undertake a $A300m IPO.

CORPORATES
DICK SMITH HOLDINGS LIMITED – ASX DSH, KOGAN TECHNOLOGIES PTY LTD, FERRIER HODGSON AND COMPANY, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, JB HI-FI LIMITED – ASX JBH