MERGERS AND ACQUISITIONS – AUSTRALIA

M&A set to throw off the shackles

roymorgansocial Leave a comment

Original article by Michael Bennet
The Australian – Page: 17 : 22-Feb-16

Data from Thomson Reuters shows that $US5.4bn ($A7.5bn) worth of mergers and acquisitions have been announced in Australia so far in 2016, compared with $US20.3bn at the same time in 2015. However, Herbert Smith Freehills partner Tony Damian expects M&A activity to improve, noting that a number of deals are in the pipeline. Freehills expects an increase in takeover activity in sectors such as financial services and resources. It also forecasts that private equity firms will be more active.

CORPORATES
THOMSON REUTERS PLC, HERBERT SMITH FREEHILLS PTY LTD, ASCIANO LIMITED – ASX AIO, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, CREDIT SUISSE (AUSTRALIA) LIMITED, STANDARD AND POOR’S ASX 200 INDEX, OZFOREX GROUP LIMITED – ASX OFX, GREENCROSS LIMITED – ASX GXL, WESTERN UNITED LIMITED, TPG CAPITAL LP, THE CARLYLE GROUP, JAPAN POST, TOLL HOLDINGS LIMITED

Asciano recommends Qube bid and invokes break fee

roymorgansocial Leave a comment

Original article by Jenny Wiggins
The Australian Financial Review – Page: 15 : 17-Feb-16

Directors of listed ports and rail group Asciano have backed the $9.05bn takeover offer from a consortium headed by Qube Holdings. Asciano will pay a break fee of $A88m to rival bidder Brookfield Infrastructure Partners, whose takeover offer had previously been endorsed by the target’s board. Qube subsequently trumped Brookfield’s offer, and the Canadian suitor failed to match its bid by the deadline of 15 February 2016. However, Brookfield could still make a revised offer.

CORPORATES
ASCIANO LIMITED – ASX AIO, QUBE HOLDINGS LIMITED – ASX QUB, BROOKFIELD INFRASTRUCTURE PARTNERS LP, GLOBAL INFRASTRUCTURE PARTNERS, CANADA PENSION PLAN INVESTMENT BOARD, CHINA INVESTMENT CORPORATION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, PSP INVESTMENTS PTY LTD, QATAR INVESTMENT AUTHORITY, BRITISH COLUMBIA INVESTMENT MANAGEMENT CORPORATION, GOVERNMENT OF SINGAPORE INVESTMENT CORPORATION PTE LTD, PATRICK CORPORATION LIMITED, PACIFIC NATIONAL PTY LTD

Sky’s the limit for Seven and News

roymorgansocial Leave a comment

Original article by Jake Mitchell
The Australian – Page: 23 : 15-Feb-16

News Corporation has been seeking to acquire Australian News Channel (ACN), which owns Sky News Australia, for the last year. ACN is owned by Nine Entertainment Company, BSkyB and Seven West Media, and the latter is said to be keen to retain its stake in the pay-TV channel. Seven also jointly owns the Presto subscription video-on-demand service in partnership with Foxtel, in which News Corporation has a 50 per cent stake.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, SEVEN WEST MEDIA LIMITED – ASX SWM, AUSTRALIAN NEWS CHANNEL PTY LTD, SKY NEWS, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SKY PLC, PRESTO ENTERTAINMENT PTY LTD, FOXTEL MANAGEMENT PTY LTD, NOVA ENTERTAINMENT PTY LTD, C7 PTY LTD, SINGTEL OPTUS PTY LTD, AUSTAR UNITED COMMUNICATIONS LIMITED, CONSOLIDATED MEDIA HOLDINGS LIMITED, SEVEN GROUP HOLDINGS LIMITED – ASX SVW

Scott drops a farewell bombshell on SBS

roymorgansocial Leave a comment

Original article by Michael Bodey
The Australian – Page: 3 : 10-Feb-16

ABC MD Mark Scott has told a Senate estimates hearing that the focus of SBS has shifted from its original role of a multicultural broadcaster to one offering more general interest content. He argued that there is now less distinction between the ABC and SBS, and said the Federal Government could eventually consider merging them. Meanwhile, Scott has indicated that the ABC will seek an extra $A25m to $A30m per year in its triennial funding package to increase its investment in regional and rural content.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION, SPECIAL BROADCASTING SERVICE (SBS)

Asciano backs $9.1b takeover bid from Qube

roymorgansocial Leave a comment

Original article by Jenny Wiggins
The Australian Financial Review – Page: 15 & 20 : 9-Feb-16

A consortium headed by Qube Holdings has gained the support of Asciano’s board after sweetening its takeover offer. The consortium’s revised offer of $A7.04 in cash and one Qube share values the bid at $A9.05bn. Asciano’s board had previously recommended the rival bid of Brookfield Infrastructure Partners, but it will be able to change its recommendation if Brookfield fails to match or exceed the Qube bid within five days. Brookfield’s bid is scheduled to lapse on 18 February.

CORPORATES
ASCIANO LIMITED – ASX AIO, QUBE HOLDINGS LIMITED – ASX QUB, BROOKFIELD INFRASTRUCTURE PARTNERS LP, GLOBAL INFRASTRUCTURE PARTNERS, CANADA PENSION PLAN INVESTMENT BOARD, CHINA INVESTMENT CORPORATION, BRITISH COLUMBIA INVESTMENT MANAGEMENT CORPORATION, GOVERNMENT OF SINGAPORE INVESTMENT CORPORATION PTE LTD, QATAR INVESTMENT AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, PATRICK CORPORATION LIMITED, PACIFIC NATIONAL PTY LTD

Brookfield mulls choice after Qube’s $9b bid

roymorgansocial Leave a comment

Original article by Jenny Wiggins
The Australian Financial Review – Page: 15 & 24 : 29-Jan-16

Shares in listed ports and rail group Asciano closed $A0.34 per cent higher at $A8.84 on 28 January 2016, after a consortium led by Qube Holdings trumped the takeover bid of Brookfield Infrastructure Partners. The offer comprises a cash component of $A6.97 per share and one Qube share, valuing the bid at $A8.85bn. Brookfield’s bid consists of $A6.94 in cash and 0.0387 of its units. Asciano will be broken up if the Qube bid succeeds, with Qube itself planning to acquire the Patrick stevedoring business.

CORPORATES
ASCIANO LIMITED – ASX AIO, QUBE HOLDINGS LIMITED – ASX QUB, BROOKFIELD INFRASTRUCTURE PARTNERS LP, PATRICK CORPORATION LIMITED, GLOBAL INFRASTRUCTURE PARTNERS, CANADA PENSION PLAN INVESTMENT BOARD, CHINA INVESTMENT CORPORATION, PACIFIC NATIONAL PTY LTD, BROOKFIELD ASSET MANAGEMENT INCORPORATED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Investors back bid for Woolworths’ Home

roymorgansocial Leave a comment

Original article by Catie Low
The Australian Financial Review – Page: 17 : 28-Jan-16

Allan Gray MD Simon Mawhinney says a merger between Metcash’s Mitre 10 business and the Home Timber & Hardware division of Woolworths could be a good deal if it was secured at an appropriate price. The future of the Home business is uncertain following Woolworths’ decision to exit the ill-fated Masters Home Improvement joint venture. Metcash has been touted as a potential buyer of Home, and it is said to have initiated talks with Woolworths on such a deal in mid-2015.

CORPORATES
METCASH LIMITED – ASX MTS, WOOLWORTHS LIMITED – ASX WOW, MITRE 10 LIMITED, HOME TIMBER AND HARDWARE, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, ALLAN GRAY AUSTRALIA PTY LTD, WESFARMERS LIMITED – ASX WES, BUNNINGS GROUP LIMITED, LUMINIS PARTNERS PTY LTD, DANKS HOLDINGS LIMITED, LOWE’S COMPANIES INCORPORATED, CLSA AUSTRALIA PTY LTD

CIMIC in $256m hostile bid for Sedgman

roymorgansocial Leave a comment

Original article by Jenny Wiggins
The Australian Financial Review – Page: 15 : 14-Jan-16

Australian-listed CIMIC Group is seeking full ownership of engineering firm Sedgman, in which it holds a 37 per cent stake. Sedgman’s shares closed at $A0.79 on 13 January 2016, compared with CIMIC’s cash offer of $A1.07 per share. Sedgman will commission an independent expert’s report before making a recommendation to shareholders regarding the bid. CIMIC launched the bid after Sedgman rejected a number of requests, which included a second board representative.

CORPORATES
CIMIC GROUP LIMITED – ASX CIM, SEDGMAN LIMITED – ASX SDM, GRUPO ACS, HOCHTIEF AG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BARMINCO PTY LTD, AUSDRILL LIMITED – ASX ASL, MORGANS FINANCIAL LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, DEVINE LIMITED – ASX DVN

Is 2016 the year of media merger frenzy?

roymorgansocial Leave a comment

Original article by Dominic White
The Australian Financial Review – Page: 13 & 16 : 12-Jan-16

Scrapping the "reach rule" and the "two-out-of three rule" is likely to be on the Australian Government’s agenda in 2016. Cross-media ownership reforms are tipped to prompt consolidation in the sector, which could include several media groups merging to form a multi-platform conglomerate. However, some industry experts believe that the value of media stocks will need to fall further in order to make a compelling case for such mega-mergers. News Corp now has exposure to newspapers, TV, radio and outdoor advertising, and it may pursue further expansion under relaxed media laws. This in turn may force some its rivals to amalgamate in order to remain competitive.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FOXTEL MANAGEMENT PTY LTD, TEN NETWORK HOLDINGS LIMITED – ASX TEN, APN NEWS AND MEDIA LIMITED – ASX APN, NOVA ENTERTAINMENT PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN WEST MEDIA LIMITED – ASX SWM, WIN CORPORATION PTY LTD, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, PRIME MEDIA GROUP LIMITED – ASX PRT, MACQUARIE MEDIA LIMITED – ASX MRN, ILLYRIA PTY LTD, MULTI CHANNEL NETWORK PTY LTD, GOOGLE INCORPORATED, NETFLIX INCORPORATED, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, STAN ENTERTAINMENT PTY LTD, PRESTO ENTERTAINMENT PTY LTD, PACIFIC MAGAZINES PTY LTD, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, BAUER MEDIA KG, AUSTRALIAN FOOTBALL LEAGUE, NATIONAL RUGBY LEAGUE, ALLAN GRAY AUSTRALIA PTY LTD, DOMAIN.COM.AU, McDONALD’S CORPORATION

Amaysim shares surge on $70m Vaya takeover

roymorgansocial Leave a comment

Original article by Ruth Liew
The Australian Financial Review – Page: 15 : 5-Jan-16

Amaysim currently boasts 718,000 mobile telephone subscribers, and the acquisition of online-only telco Vaya will increase its customer base by around 140,000. CEO Julian Ogrin says the $A70m deal will assist the growth strategy of Amaysim, which is aiming for one million customers by 2019. Ogrin anticipates further consolidation in the mobile phone market in 2016. Amaysim shares closed 20 per cent higher at $A2.75 on 4 January.

CORPORATES
AMAYSIM AUSTRALIA LIMITED – ASX AYS, VAYA PTY LTD, SINGTEL OPTUS PTY LTD, TPG TELECOM LIMITED – ASX TPM, IINET LIMITED, VOCUS COMMUNICATIONS LIMITED – ASX VOC, M2 GROUP LIMITED – ASX MTU, TELSTRA CORPORATION LIMITED – ASX TLS, VODAFONE AUSTRALIA LIMITED