MERGERS AND ACQUISITIONS – AUSTRALIA

Packer’s Crown payday set for June 24

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Original article by Lucas Baird
The Australian Financial Review – Page: 15 : 16-Jun-22

The Federal Court has approved the $8.9bn acquisition of Crown Resorts by private equity firm Blackstone. Crown’s major shareholder James Packer will receive about $3.3bn for his stake in the casinos group. The sale of Crown signals the end of a turbulent period for Packer, who was forced to abandon a deal to sell a large stake in Crown to Melco Resorts in 2019. Scrutiny of that deal subsequently result in a NSW Independent Liquor & Gaming Authority investigation into allegations that Crown had breached anti-money laundering laws, and similar probes in Victoria and Western Australia.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN, THE BLACKSTONE GROUP LP, FEDERAL COURT OF AUSTRALIA, NEW SOUTH WALES. INDEPENDENT LIQUOR AND GAMING AUTHORITY

Glencore tried to sell Yancoal stake to parent

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 30-May-22

Yankuang Energy’s bid to gain full ownership of Yancoal Australia will need the support of Glencore, which has a 6.4 per cent stake in the target. Hong Kong-listed Yankuang has a 62.26 per cent stake in Yancoal, and the support of Glencore will be needed if it is to reach the 90 per cent threshold to move to compulsory acquisition. This would also require ownership restrictions imposed on Yancoal by the Foreign Investment Review Board in 2012 to be overturned. Meanwhile, it has emerged that Glencore has sought on a number of occasions in recent years to sell its Yancoal stake to Yankuang, and it is likely to be a willing seller at the right price.

CORPORATES
YANCOAL AUSTRALIA LIMITED – ASX YAL, YANKUANG ENERGY GROUP COMPANY LIMITED, GLENCORE PLC

Buy now, merge later: Zip, Sezzle in $491m tie-up

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Original article by David Ross
The Australian – Page: 13 & 16 : 1-Mar-22

Zip Co will acquire ‘buy now, pay later’ rival Sezzle in an all-scrip deal that values the latter at $491 million. The transaction comes less than two months after Latitude Financial announced that it would buy Humm’s BNPL and credit card businesses. The announcement coincided with the release of Zip’s results for the six months to 31 December. Zip reported an interim loss of $172.8 million, down from $455.9 million a year earlier, while revenue was up 89 per cent to $302.2 million.

CORPORATES
ZIP CO LIMITED – ASX Z1P, SEZZLE INCORPORATED – ASX SZL, LATITUDE FINANCIAL SERVICES GROUP LIMITED – ASX LFS, HUMM GROUP LIMITED – ASX HUM

Buy now, merge later: Zip, Sezzle in $491m tie-up

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Original article by David Ross
The Australian – Page: 13 & 16 : 1-Mar-22

Zip Co will acquire ‘buy now, pay later’ rival Sezzle in an all-scrip deal that values the latter at $491 million. The transaction comes less than two months after Latitude Financial announced that it would buy Humm’s BNPL and credit card businesses. The announcement coincided with the release of Zip’s results for the six months to 31 December. Zip reported an interim loss of $172.8 million, down from $455.9 million a year earlier, while revenue was up 89 per cent to $302.2 million.

CORPORATES
ZIP CO LIMITED – ASX Z1P, SEZZLE INCORPORATED – ASX SZL, LATITUDE FINANCIAL SERVICES GROUP LIMITED – ASX LFS, HUMM GROUP LIMITED – ASX HUM

Cannon-Brookes bid doesn’t add up, says AGL chief

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 1 & 16 : 23-Feb-22

AGL Energy’s CEO Graeme Hunt says a $5bn takeover offer "extremely undervalues" the electricity generator and retailer. He says Brookfield Asset Management and Atlassian co-founder Mike Cannon-Brookes are seeking to buy AGL at a "ridiculously low premium". Hunt has also questioned the bidders’ proposal to fast-track the closure of AGL’s coal-fired power stations, and their claims that this would have no appreciable impact on electricity prices. Meanwhile, former Energy Security Board chair Kerry Schott contends that there would be insufficient grounds for the federal government to intervene and block the deal.

CORPORATES
AGL ENERGY LIMITED – ASX AGL, BROOKFIELD ASSET MANAGEMENT INCORPORATED, ATLASSIAN CORPORATION PLC, ENERGY SECURITY BOARD

Big Oil Search investors baulk at $21b merger

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 & 18 : 1-Dec-21

Oil Search shareholders will vote on the proposed $21bn merger with Santos on 7 December, and proxy votes are likely to determine whether the deal proceeds. The four major proxy advisers have backed the deal, albeit with some qualifications regarding valuation. Several large institutional shareholders in Oil Search have indicated that they will vote against the deal. However, investors with shares in both Oil Search and Santos are said to be largely supportive of the merger.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, SANTOS LIMITED – ASX STO

Oil Search gets proxy nod for merger

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Original article by Perry Williams
The Australian – Page: 16 : 25-Nov-21

Some 75 per cent of Oil Search’s investors will need to approve the proposed merger with Santos for the $21bn deal to proceed. Proxy adviser Institutional Shareholder Services has recommended that shareholders endorse the all-scrip offer, citing factors such as the 16.8 per cent premium over Oil Search’s share price, the pre-tax synergies and the absence of a superior offer. Wilson Asset Management also supports the merger, although Allan Gray Australia opposes it. Oil Search shareholders will vote on the deal on 7 December.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, SANTOS LIMITED – ASX STO, INSTITUTIONAL SHAREHOLDER SERVICES INCORPORATED, WILSON ASSET MANAGEMENT, ALLAN GRAY AUSTRALIA PTY LTD

Prime Media welcomes Seven, castigates the Nationals

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Original article by Miranda Ward
The Australian Financial Review – Page: 27 : 25-Nov-21

Prime Media Group’s CEO Ian Audsley says the proposed takeover by Seven West Media is in the best interests of the regional affiliate’s shareholders. He has told Prime’s AGM that digital disruption has had an "irreversible and negative" impact on traditional media businesses in regional Australia. Audsley also warned that Prime’s future would be uncertain if the merger does not proceed. In addition, he has criticised the federal government – and the National Party in particular – over its failure to pursue further media reforms.

CORPORATES
PRIME MEDIA GROUP LIMITED – ASX PRT, SEVEN WEST MEDIA LIMITED – ASX SWM, NATIONAL PARTY OF AUSTRALIA

Hostile bids abound in era of uncertainty

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Original article by Richard Gluyas
The Australian – Page: 15 : 23-Nov-21

Data from law firm Minter Ellison shows that there have been eight hostile takeover bids in Australia so far in 2021, following nine such bids in 2020. This compares with just five in 2019, prior to the COVID-19 pandemic. Minter Ellison notes that the target’s board did not commission an independent expert’s report in 15 of the last 20 hostile takeover bids. Alberto Colla of Minter Ellison says bidders usually prefer to pursue a friendly takeover bid that has the support and recommendation of the target’s board.

CORPORATES
MINTER ELLISON

Woodside seals oil, gas mega-deals

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 1 & 19 : 23-Nov-21

Woodside Petroleum will become one of the world’s 10 biggest oil and gas producers after it finalised a deal to merge with BHP’s petroleum division. The announcement of a binding merger deal has coincided with the long-awaited final investment decision on the $16.5bn Scarborough LNG project. Woodside will control 52 per cent of the enlarged company, in line with the original terms of the merger deal that were released in August. The merger will expand the scope of Woodside’s operations to include Australia, the US, Africa and the Caribbean.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP GROUP LIMITED – ASX BHP