MERGERS AND ACQUISITIONS – AUSTRALIA

Woolworths’ pub fund lightens load with $603m property sale

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Original article by Ben Wilmot, Richard Gluyas
The Australian – Page: 17 : 9-Sep-14

Real estate funds management group Charter Hall and industry superannuation fund HOSTPLUS will jointly pay $A603m via a new unlisted vehicle to acquire pub assets. The seller of the freehold properties is the ALH Group linked to bottle shops and pubs operator Woolworths. The latter, through its venture with entrepreneur Bruce Mathieson, will lease back the 54 sites. The real estate holdings divestment by Woolworths has now reached $A2.9bn in value

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, CHARTER HALL GROUP – ASX CHC, AUSTRALIAN LEISURE AND HOSPITALITY GROUP LIMITED, BRUANDWO PTY LTD, HOST-PLUS, MH CARNEGIE AND COMPANY PTY LTD, AUSTRALIAN PUBS FUND, DAN MURPHY’S, BWS – BEER WINE SPIRITS, SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP – ASX SCP, LAUNDY HOTELS PTY LTD, TELSTRA STAFF SUPERANNUATION SCHEME, ALE PROPERTY GROUP – ASX LEP, HOTEL PROPERTIES INVESTMENTS – ASX HPI, COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES

Investors back secret BoQ, Suncorp merger talks

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Original article by James Chessell, Sarah Thompson, Ruth Liew, Shaun Drummond
The Australian Financial Review – Page: 1 & 45 : 3-Sep-14

Jan van der Schalk of CLSA believes that there were merits to the proposed merger between Suncorp Group’s banking division and the Bank of Queensland (BoQ). Ausbil Dexia’s Paul Xiradis says any such deal would have been well received by the market, but notes that the groups’ focus on Queensland could be a concern. It has been revealed that Suncorp and BoQ abandoned preliminary merger talks earlier in 2014. Chris Hall of Argo Investments says the resignation of BoQ CEO Stuart Grimshaw means further merger talks are unlikely

CORPORATES
SUNCORP GROUP LIMITED – ASX SUN, BANK OF QUEENSLAND LIMITED – ASX BOQ, CLSA AUSTRALIA PTY LTD, AUSBIL DEXIA LIMITED, ARGO INVESTMENTS LIMITED – ASX ARG, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, PROMINA GROUP LIMITED, EZCORP INCORPORATED, VIRGIN MONEY (AUSTRALIA) PTY LTD, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN ASSOCIATED MOTOR INSURERS LIMITED, GIO AUSTRALIA LIMITED, BELL POTTER SECURITIES LIMITED, BELL FINANCIAL GROUP LIMITED – ASX BFG

Qantas set to beat Virgin in race to get back in the black

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Original article by Jamie Freed
The Australian Financial Review – Page: 15 & 20 : 2-Sep-14

Qantas and Virgin Australia both posted losses for the 2013-14 financial year, and cost-reduction measures will be a key strategy in their return to profitability. Analysts forecast that Qantas will book a profit of about $A66m for 2014-15, while Virgin is not tipped to be in the black until 2015-16. Meanwhile, Virgin will gain $A336m from the sale of a 35 per cent stake in its frequent flyer program to Affinity Equity Partners

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, VELOCITY FREQUENT FLYER PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CLSA AUSTRALIA PTY LTD, CITIGROUP PTY LTD, AFFINITY EQUITY PARTNERS (AUSTRALIA) PTY LTD, MERRILL LYNCH (AUSTRALIA) PTY LTD, AIR NEW ZEALAND LIMITED – ASX AIZ, SINGAPORE AIRLINES LIMITED, ETIHAD AIRWAYS, VIRGIN GROUP LIMITED, TIGER AIRWAYS AUSTRALIA PTY LTD

Fairfax-Nine rumours quashed

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Original article by Jake Mitchell
The Australian Financial Review – Page: 17 : 27-Aug-14

The combined stake of 36% in Nine Entertainment held by US-based hedge funds Oaktree Capital and Apollo Global Management will come out of escrow on 28 August 2014. There have been claims in News Corporation newspaper "The Australian" that rival publisher Fairfax Media is preparing to acquire a major holding in Nine. However due to current cross-media ownership laws it would only be able to purchase 14.99% of the free-to-air TV group, and Fairfax has rejected the speculation

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NEWS CORPORATION – ASX NWS, NEWS CORP AUSTRALIA PTY LTD, OAKTREE CAPITAL MANAGEMENT LLC, APOLLO GLOBAL MANAGEMENT LLC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CITIGROUP PTY LTD

Treasury in hunt for US assets

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Original article by Eli Greenblat
The Australian Financial Review – Page: 15 & 20 : 25-Aug-14

Treasury Wine Estates has reduced costs by $A35m since Michael Clarke became CEO earlier in 2014. Clarke says the group’s major shareholders are very supportive of plans to pursue growth via "bolt-on" acquisitions in the US. He adds that both of Treasury’s private equity suitors have also supported his growth strategy. Treasury’s 2013-14 net loss of $A100.9m was primarily due to some $A281m worth of write-downs

CORPORATES
TREASURY WINE ESTATES LIMITED – ASX TWE, KKR AND COMPANY LP, KOHLBERG KRAVIS ROBERTS AND COMPANY, TPG CAPITAL LP, FOSTER’S GROUP LIMITED, BERINGER WINE ESTATES HOLDINGS INCORPORATED, LUCOZADE

Treasury thirsty for acquisitions

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Original article by Richard Gluyas
The Australian – Page: 19 : 22-Aug-14

Treasury Wine Estates has posted a 2013-14 full-year net loss of $A100.9m. EBITS of $A193m was not enough to offset provisioning worth $A280.6m for impaired assets. EBITS in the Australasian operations fell 31.5% to $A75.1m, and that for the US division was down 7% at $A80m once foreign exchange rate fluctuations were taken into account. On 21 August 2014 the stock closed $A0.13 lower at $A5.20, also the offer price in rival takeover bids by private equity firms TPG Capital and Kohlberg Kravis Roberts with Rhone Capital. CEO Mike Clarke said the company wants to expand in the US premium wines segment

CORPORATES
TREASURY WINE ESTATES LIMITED – ASX TWE, KOHLBERG KRAVIS ROBERTS AND COMPANY, KKR AND COMPANY LP, RHONE CAPITAL LLC, TPG CAPITAL LP, PENFOLDS WINES PTY LTD, ROSEMOUNT ESTATES PTY LTD, LINDEMANS WINES PTY LTD, CITIGROUP PTY LTD

Woodside on M&A chase

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 19 : 21-Aug-14

Woodside Petroleum has posted a 2014 interim underlying net profit of $US1.136bn, which is 33 per cent higher than previously. Revenue was 24 per cent higher at $US3.55bn. CEO Peter Coleman says the group plans to spend up to $A5bn on large acquisitions, which could potentially include Apache’s 13 per cent stake in the Wheatstone LNG project. Andrew Williams of RBC Capital Markets believes that Woodside may also consider Apache’s Kitimat LNG project in Canada

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL,APACHE ENERGY LIMITED,RBC CAPITAL MARKETS,BERNSTEIN RESEARCH,CHEVRON CORPORATION

Perked-up SEEK aims to complete JobStreet bid in weeks

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Original article by Madeleine Heffernan
The Australian Financial Review – Page: 19 : 21-Aug-14

Australian-listed SEEK has posted a 2013-14 underlying net profit of $A179.7m. The online job advertisement website operator had revenue of $A756.4m for the financial year, while shareholders will receive a dividend of $A0.16 per share for the second half. Meanwhile, the group has advised that it expects to pay $A636m for JobStreet, with the deal likely to be finalised in September 2014

CORPORATES
SEEK LIMITED – ASX SEK,JOBSTREET CORPORATION BERHAD,SINGAPORE. COMPETITION COMMISSION,CITIGROUP PTY LTD,LINKEDIN LIMITED,MORGANS FINANCIAL LIMITED,CARSALES.COM LIMITED – ASX CRZ,REA GROUP LIMITED – ASX REA

Start-ups focus for Telstra offshoot

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Original article by David Ramli
The Australian Financial Review – Page: 23 : 19-Aug-14

Australian telco Telstra is pursuing a strategy under CEO David Thodey of diversifying into technology start-ups, to prepare itself for the loss of revenue from the traditional telephony business. It has set up the muru-D incubator in Sydney and lifted its stake in US-based online video software provider Ooyala from 23% to 98% for $US270m ($A289m). Both will now be housed in the newly-incorporated Telstra Software Group entity, where the board consists of global enterprise and services group executive Brendon Riley, strategic finance group MD Cynthia Whelan and muru-D co-founder Charlotte Yarkoni

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, TELSTRA SOFTWARE GROUP PTY LTD, MURU-D PTY LTD, OOYALA INCORPORATED, SINGTEL OPTUS PTY LTD, SINGAPORE TELECOMMUNICATIONS LIMITED – ASX SGT, SINGTEL INNOV8 PTE LTD, GARTNER GROUP INCORPORATED, WHATSAPP INCORPORATED, SKYPE TECHNOLOGIES SA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Goodman loss unlikely to derail Wilmar bid

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Original article by Blair Speedy
The Australian – Page: 19 : 14-Aug-14

Goodman Fielder has announced a 2013-14 full-year loss of $A405m, due to provisioning worth $A358m in the baked products and grocery units that brings the total writedowns since 2010-11 to $A1.2bn. However experts do not see the result as likely to influence Singapore-based takeover suitor Wilmar and partner First Pacific, which are offering $A0.675 a share for the Australian-listed company. The initial bid had been $A0.65, and was sweetened to $A0.70 to gain access for due diligence before being cut back again. On 13 August 2014 the stock closed $A0.01 lower at $A0.63

CORPORATES
GOODMAN FIELDER LIMITED – ASX GFF, WILMAR INTERNATIONAL LIMITED, DEUTSCHE BANK AG, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, FIRST PACIFIC COMPANY LIMITED