MERGERS AND ACQUISITIONS – AUSTRALIA

Discovery Communications walks from Channel Ten auction

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Original article by Dominic White
The Australian Financial Review – Page: 13 & 18 : 23-Mar-15

Discovery Communications has abandoned its proposed takeover of the Ten Network in partnership with Foxtel. They had initially offered $A0.26 per share, but reduced this to $A0.23 after due diligence. Discovery and Foxtel had proposed to acquire Ten’s main assets, and Discovery would not support an alternative proposal from Ten directors for the joint venture partners to each acquire a 14.99 per cent stake and gain a seat on Ten’s board

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, DISCOVERY COMMUNICATIONS INCORPORATED, FOXTEL MANAGEMENT PTY LTD, CITIGROUP PTY LTD, WIN CORPORATION PTY LTD, NEWS CORPORATION – ASX NWS, CROWN RESORTS LIMITED – ASX CWN, LAZARD ASSET MANAGEMENT PACIFIC COMPANY

Major iiNet shareholder labels TPG bid price ‘absurd’

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Original article by David Ramli, Jemima Whyte
The Australian Financial Review – Page: 13 & 18 : 20-Mar-15

BT Investment Management’s Paul Hannan says the fund manager is disappointed that iiNet directors have not contacted major shareholders regarding TPG Telecom’s takeover offer. Hannan adds that the current offer gives iiNet shareholders little benefit from synergies arising from a merger. Andrew Abercrombie, who holds 500,000 shares in iiNet, has also criticised the telco’s lack of communication with investors in recent months

CORPORATES
IINET LIMITED – ASX IIN, TPG TELECOM LIMITED – ASX TPM, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, NBN CO LIMITED, INTERNODE SYSTEMS PTY LTD, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, AZURE CAPITAL PARTNERS LP, SINGTEL OPTUS PTY LTD

TPG cutting customer service could derail iiNet purchase

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Original article by David Ramli
The Australian Financial Review – Page: 23 : 17-Mar-15

TPG Telecom’s proposed acquisition of iiNet for $A1.4 billion has triggered a rise in the share prices of both companies. Shareholders may be optimistic, but iiNet customers have expressed reservations about the merger’s impact on the ISP’s high level of customer service. TPG in contrast specialises in the provision of low-cost internet access

CORPORATES
IINET LIMITED – ASX IIN, TPG TELECOM LIMITED – ASX TPM, BDO GROUP PTY LTD, CITI PTY LTD

KKR snares GE Capital arm for $8.2b

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Original article by Sarah Thompson, Sally Patten, Anthony Macdonald
The Australian Financial Review – Page: 13 : 16-Mar-15

The Australasian consumer finance division of GE Capital will be sold to KKR & Company, Deutsche Bank and Varde Partners. The consortium will pay $A8.2bn for the business, whose operations include credit cards, personal loans and sales finance. The KKR-led consortium was one of four groups that made binding bids for the business, which GE put on the market in late 2014

CORPORATES
GE CAPITAL CORPORATION, KKR AND COMPANY LP, KOHLBERG KRAVIS ROBERTS AND COMPANY, DEUTSCHE BANK AG, VARDE PARTNERS INCORPORATED, TPG CAPITAL LP, ONTARIO TEACHERS’ PENSION PLAN, MACQUARIE GROUP LIMITED – ASX MQG, THE BLACKSTONE GROUP LP, LIBERTY FINANCIAL PTY LTD, GOVERNMENT OF SINGAPORE INVESTMENT CORPORATION PTE LTD, APOLLO GLOBAL MANAGEMENT LLC, JC FLOWERS AND COMPANY LLC, PEPPER AUSTRALIA, QATAR INVESTMENT AUTHORITY, CREDIT SUISSE AG, MORGAN STANLEY AND COMPANY INCORPORATED, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, CITIGROUP INCORPORATED, MOELIS AND COMPANY

IFM snares US tollroad for $10b

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Original article by Jenny Wiggins, Anthony Macdonald
The Australian Financial Review – Page: 13 & 20 : 13-Mar-15

IFM Investors CEO Brett Himbury has described the Indiana Toll Road in the US as a "fantastic investment" for the group. He is upbeat about the outlook for the US economy, and notes that the 253km toll road’s revenue is likely to remain strong regardless of the strength of the economic recovery. IFM has paid $US7.5bn ($A10bn) for a 66-year lease to operate the toll road, which was placed into bankruptcy in 2014

CORPORATES
IFM INVESTORS PTY LTD, INDIANA TOLL ROAD CONCESSION COMPANY, MACQUARIE GROUP LIMITED – ASX MQG, CINTRA CONCESIONES DE INFRAESTRUCTURAS DE TRANSPORTE SA, GRUPO FERROVIAL SA, TRANSURBAN GROUP LIMITED – ASX TCL, CANADA PENSION PLAN INVESTMENT BOARD, ONTARIO TEACHERS’ PENSION PLAN, ABERTIS INFRAESTRUCTURAS SA, BOREALIS INFRASTRUCTURE MANAGEMENT INCORPORATED, QUEENSLAND MOTORWAYS LIMITED

Gordon offers to pump up to $100m into Ten

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Original article by Dominic White
The Australian Financial Review – Page: 15 & 20 : 11-Mar-15

The Ten Network’s largest shareholder, Bruce Gordon, opposes the broadcaster’s proposed acquisition by Foxtel and Discovery Communications. The 14.9 per cent stakeholder has instead approached Ten about investing an additional $A70m to $A100m in the network. This investment would be converted into equity in Ten if cross-media ownership laws are changed in the future. Gordon has also proposed being given two seats on Ten’s board

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, WIN CORPORATION PTY LTD, FOXTEL MANAGEMENT PTY LTD, DISCOVERY COMMUNICATIONS INCORPORATED, CROWN RESORTS LIMITED – ASX CWN, NEWS CORPORATION – ASX NWS, HANCOCK PROSPECTING PTY LTD, CITIGROUP PTY LTD, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, LAZARD ASSET MANAGEMENT PACIFIC COMPANY

Hedge funds line up takeover targets

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Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 23 : 6-Mar-15

Regal Funds Management’s Julian Barbarczy says a number of factors could result in higher-than-average mergers and acquisitions activity in Australia during 2015. He stresses that investors should decide to buy a stock after considering a range of factors rather than just its potential to become a takeover target. Recent strong share price gains have prompted speculation that suitors could soon be circling stocks such as Treasury Wine Estates, DUET Group, Syrah Resources, Challenger, Qube Holdings and Sirius Resources

CORPORATES
REGAL FUNDS MANAGEMENT PTY LTD, TREASURY WINE ESTATES LIMITED – ASX TWE, DUET GROUP – ASX DUE, SYRAH RESOURCES LIMITED – ASX SYR, CHALLENGER LIMITED – ASX CGF, QUBE HOLDINGS LIMITED – ASX QUB, SIRIUS RESOURCES NL – ASX SIR, CLIME ASSET MANAGEMENT PTY LTD, PM CAPITAL LIMITED, STANDARD AND POOR’S ASX 200 INDEX, TELSTRA CORPORATION LIMITED – ASX TLS, LIVEWIRE MARKETS, SPARK INFRASTRUCTURE GROUP – ASX SKI, APA GROUP – ASX APA, TOLL HOLDINGS LIMITED – ASX TOL, ASCIANO LIMITED – ASX AIO

Macquarie seals $5.1b aircraft deal

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 23 & 27 : 5-Mar-15

Australian-listed Macquarie Group will partially finance the acquisition of an aircraft fleet via a $A500m capital raising. The group will pay $US4bn ($A5.1bn) for the fleet of 90 passenger airplanes, which were sold by the Canada Pension Plan Investment Board and Terra Firma. Macquarie’s aircraft leasing business has made a number of acquisitions in recent years, and now boasts a fleet of 220 aircraft

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, TERRA FIRMA CAPITAL PARTNERS LIMITED, CANADA PENSION PLAN INVESTMENT BOARD, MACQUARIE AIRFINANCE LIMITED, SUMITOMO MITSUI FINANCIAL GROUP INCORPORATED, ROYAL BANK OF SCOTLAND GROUP PLC, MORGAN STANLEY AND COMPANY INCORPORATED, AWAS AVIATION CAPITAL LIMITED, ARNHEM INVESTMENT MANAGEMENT PTY LTD, BOEING COMPANY, AIRBUS SAS, DEALOGIC (AUSTRALIA) PTY LTD, AIRLINE BUSINESS, GENERAL ELECTRIC COMPANY, GENERAL ELECTRIC CAPITAL AVIATION SERVICES, AERCAP HOLDINGS NV, BOEING CAPITAL CORPORATION, QANTAS AIRWAYS LIMITED – ASX QAN, AIR FRANCE SA, ETIHAD AIRWAYS, AMERICAN INTERNATIONAL GROUP INCORPORATED

IFM ready to snap up oil assets

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Original article by Amanda Saunders
The Australian Financial Review – Page: 28 : 5-Mar-15

IFM Investors CEO Brett Himbury has indicated that the group is looking to invest in Australian oil and gas pipeline assets. Potential acquisitions could include the Gladstone LNG pipeline in Queensland and the Australia Pacific LNG pipeline, which may both be put on the market. IFM recently missed out on the sale of BG’s gas pipeline in Queensland, which will be acquired by APA Group

CORPORATES
IFM INVESTORS PTY LTD, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, GLADSTONE LNG PTY LTD, AUSTRALIA PACIFIC LNG LIMITED, BG GROUP PLC, APA GROUP – ASX APA, DUET GROUP – ASX DUE, FREEPORT LNG DEVELOPMENT LP, QIC LIMITED, AMP CAPITAL INVESTORS LIMITED, CHINA INVESTMENT CORPORATION

Strong M&A tipped for 2015

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 15 : 24-Feb-15

Data from Dealogic shows that some $US13.9bn ($A17.7bn) worth of mergers and acquisitions have been proposed in Australia so far in 2015. M&A experts are generally upbeat about the outlook for 2015, with Minter Ellison partner Ron Forster anticipating strong activity in the gold and iron ore sectors in particular. Karen Evans-Cullen of Clayton Utz notes that the downturn in the value of the Australian dollar may attract more bids from offshore groups

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, MINTER ELLISON, CLAYTON UTZ, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, TOLL HOLDINGS LIMITED – ASX TOL, JAPAN POST, NOVION PROPERTY GROUP – ASX NVN, FEDERATION CENTRES – ASX FDC, PORT OF MELBOURNE, AUSTRALIA. DEFENCE HOUSING AUSTRALIA, BOART LONGYEAR LIMITED – ASX BLY, CENTERBRIDGE PARTNERS LP, GRESHAM PARTNERS LIMITED, MIZUHO BANK LIMITED