MERGERS AND ACQUISITIONS – AUSTRALIA

Oakton adds depth to Dimension

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Original article by Scott Parker
The Australian Financial Review – Page: 18 : 13-Aug-14

Todd Guyot of Moelis & Company says the proposed merger between Dimension Data Australia (DDA) and the listed Oakton is a good deal for both companies. DDA will pay $A1.90 per share, valuing Oakton at $A171m. DDA CEO Rodd Cunico says there are unlikely to be any job cuts as a result of the merger, which will creat a technology company with some 3,600 employees

CORPORATES
OAKTON LIMITED – ASX OKN, DIMENSION DATA AUSTRALIA PTY LTD, DIMENSION DATA HOLDINGS LIMITED, MOELIS AND COMPANY

Law of returns as Slater & Gordon hits $61m

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Original article by Chris Merritt
The Australian – Page: 21 : 13-Aug-14

Slater & Gordon has announced a 2013-14 full-year net profit increase of 47.2% to $A61.1m, on revenue that also rose 40.4% to reach $A418.5m. The 12-month distribution has been lifted 21.2%, with the final dividend up 29.9% to $A0.05 fully-franked. MD Andrew Grech says the Australian-listed law firm is seeing a strong contribution by the recently acquired UK businesses. It will also buy Nowicki Carbone and Schultz Toomey O’Brien in Victoria and Queensland respectively, later in 2014

CORPORATES
SLATER AND GORDON LIMITED – ASX SGH, NOWICKI CARBONE AND COMPANY, SCHULTZ TOOMEY O’BRIEN LAWYERS, TRILBY MISSO LAWYERS LIMITED

Expedia buyout spares shareholders of ‘lucky’ Wotif

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Original article by Jamie Freed
The Australian Financial Review – Page: 18 : 13-Aug-14

Wotif.com has posted a 2013-14 net profit of $A43.2m, which is 15.4 per cent lower than previously, while booked room nights were down by 10.8 per cent. CEO Scott Blume expects the decline in room bookings to continue as a result of competition in the sector, and he concedes that Wotif.com would find it challenging to turn this around if the takeover bid from US-based Expedia does not succeed

CORPORATES
WOTIF.COM HOLDINGS LIMITED – ASX WTF, EXPEDIA INCORPORATED, PRICELINE.COM, BOOKING.COM BV

GrainCorp chair hails CEO’s global expertise

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Original article by Andrew White
The Australian – Page: 20 : 13-Aug-14

Mark Palmquist has been appointed the new CEO of Australian-listed rural commodities trading group GrainCorp, meaning executive chair Don Taylor will now serve as chair only. The latter had succeeded Alison Watkins in late 2013. Palmquist is joining GrainCorp from his roles as vice-president and COO of the agriculture unit at US-based CHS, and Taylor says this background will be a major benefit in implementing a new strategy at GrainCorp. The company is considering acquisitions, and has spent $A10m on a 10% holding in Egyptian client Five Star Flour Mills

CORPORATES
GRAINCORP LIMITED – ASX GNC, COCA-COLA AMATIL LIMITED – ASX CCL, CHS INCORPORATED, FIVE STAR FLOUR MILLS, ARCHER DANIELS MIDLAND COMPANY, AUSTRALIA. DEPT OF THE TREASURY

Stokes happy with BC Iron takeover bid

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 12-Aug-14

Australian businessman Kerry Stokes will be the largest shareholder of BC Iron if its $250m cash and scrip bid for Iron Ore Holdings (IOH) succeeds. Stokes has a 25 per cent stake in the target, and the offer of $A0.10 per share plus 0.44 shares in BC Iron for every IOH share would give him a 19 per cent stake in BC. IOH shares rose by $A0.37 to $A1.35 on 11 August 2014, while BC Iron was down $A0.32 at $A2.99

CORPORATES
BC IRON LIMITED – ASX BCI, IRON ORE HOLDINGS LIMITED – ASX IOH, FORTESCUE METALS GROUP LIMITED – ASX FMG, AURIZON HOLDINGS LIMITED – ASX AZJ, SHANGHAI BAOSTEEL GROUP CORPORATION, AQUILA RESOURCES LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, NEXUS ENERGY LIMITED – ASX NXS

In their cups, miners talk up big asset sales

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Original article by Paul Garvey
The Australian – Page: 18 : 7-Aug-14

Discussions on the sidelines of the "Diggers & Dealers" forum held in early August 2014 in the Western Australian city of Kalgoorlie were marked by speculation about asset sales as well as acquisitions in the mining sector. The deals most spoken about were the divestment by BHP Billiton of its Nickel West smelter, and that by US group Cliffs Natural Resources of the Koolyanobbing iron ore mine. Meanwhile, junior mining companies are set to follow the lead of Northern Star Resources and engage in renewed mergers activity. Among those looking for targets are Sandfire Resources, Regis Resources, Independence Group and Evolution Mining

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, SANDFIRE RESOURCES NL – ASX SFR, REGIS RESOURCES LIMITED – ASX RRL, INDEPENDENCE GROUP NL – ASX IGO, EVOLUTION MINING LIMITED – ASX EVN, BHP BILLITON LIMITED – ASX BHP, CLIFFS NATURAL RESOURCES INCORPORATED, DIGGERS AND DEALERS FORUM, PANORAMIC RESOURCES LIMITED – ASX PAN, JINCHUAN NON-FERROUS METALS IMPORT AND EXPORT COMPANY, APOLLO GLOBAL MANAGEMENT LLC, GLENCORE XSTRATA PLC, MINERAL RESOURCES LIMITED – ASX MIN, AQUILA RESOURCES LIMITED, SHANGHAI BAOSTEEL GROUP CORPORATION, AURIZON HOLDINGS LIMITED – ASX AZJ, MOUNT GIBSON IRON LIMITED – ASX MGX, BC IRON LIMITED – ASX BCI, HOT CHILI LIMITED – ASX HCH, COMPANIA MINERA DEL PACIFICO SA

Takeover rush fuelled by cheap debt could shrink index

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Original article by Vesna Poljak
The Australian Financial Review – Page: 30 : 7-Aug-14

Hasan Tevfik of Credit Suisse expects Australia’s benchmark S&P/ASX 200 Index to reach 6,000 points by the end of 2014. He forecasts that the low cost of funding via debt markets will lead to an upturn in takeover activity in Australia. This in turn will result in the number of companies that are acquired or undertake buybacks exceeding IPO and capital raising activity

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, STANDARD AND POOR’S ASX 200 INDEX, DAVID JONES LIMITED – ASX DJS, AUSTRALAND PROPERTY GROUP – ASX ALZ, TREASURY WINE ESTATES LIMITED – ASX TWE, UNITED STATES. FEDERAL RESERVE BOARD, BUSINESS 20 (B20), RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Alinta eyes Lumo in east coast push

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 5-Aug-14

New Zealand-based Infratil is divesting its Lumo Energy gas and electricity retailing business in Australia. Alinta Energy has joined Pacific Hydro and M2 Telecommunications as a potential acquirer, as the utility continues its expansion from the home market of Western Australia into the eastern states. However CEO Jeff Dimery notes that the recent over-supply of electricity due to new wind power plants means he will seek lower prices for generation assets on the market after privatisations in Queensland and New South Wales. Alinta has been owned by US private equity firm TPG Capital since the beginning of 2011

CORPORATES
ALINTA ENERGY (AUSTRALIA) PTY LTD, INFRATIL LIMITED – ASX IFZ, LUMO ENERGY AUSTRALIA PTY LTD, M2 GROUP LIMITED – ASX MTU, PACIFIC HYDRO LIMITED, IFM RENEWABLE ENERGY PTY LTD, IFM INVESTORS PTY LTD, TPG CAPITAL LP, SINGAPORE POWER LIMITED, BABCOCK AND BROWN LIMITED

Fosun’s cash offer wins Roc Oil

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Original article by Matt Chambers
The Australian – Page: 18 : 5-Aug-14

Fund management firm Allan Gray, which has a 19% stake in Australian-listed Roc Oil, has given its support to a takeover offer worth $A474m. The suitor is private Chinese group Fosun, which will pay $A0.69 a share in cash. Allan Gray had previously lobbied against an attempt by Roc to stage a merger of equals with Horizon Oil that required no stockholder vote, and it motivated 51% of Roc’s investors to demand a say on the proposal. Roc will now be delisted by Fosun, and on 4 August 2014 the stock closed $A0.045 higher at $A0.675. Horizon shares fell $A0.025 to $A0.345

CORPORATES
ROC OIL COMPANY LIMITED – ASX ROC, HORIZON OIL LIMITED – ASX HZN, FOSUN INTERNATIONAL LIMITED, ALLAN GRAY AUSTRALIA PTY LTD, OSAKA GAS COMPANY, ASX LIMITED – ASX ASX

Treasury sets the pace for $3.4b offer

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Original article by Simon Evans, Sarah Thompson
The Australian Financial Review – Page: 15 & 20 : 5-Aug-14

Shares in Treasury Wine Estates closed $A0.20 higher at $A5.15 on 4 August 2014, in response to a revised takeover bid. Private equity firms Kohlberg Kravis Roberts (KKR) and Rhone Capital are offering $A5.20 per share, compared with KKR’s initial offer of $A4.70. Treasury has invited the bidders to undertake non-exclusive due diligence, and wants them to conclude the process as quickly as possible

CORPORATES
TREASURY WINE ESTATES LIMITED – ASX TWE, KKR AND COMPANY LP, KOHLBERG KRAVIS ROBERTS AND COMPANY, RHONE CAPITAL LLC, PENFOLDS WINES PTY LTD, WOLF BLASS WINES PTY LTD, LINDEMANS WINES PTY LTD, ROSEMOUNT ESTATES PTY LTD, WYNNS COONAWARRA ESTATE PTY LTD, FOSTER’S GROUP LIMITED