MERGERS AND ACQUISITIONS – 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

Seven West lobs new deal for Prime

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Original article by Sophie Elsworth
The Australian – Page: 15 : 2-Nov-21

Seven West Media is set to acquire regional broadcasting affiliate Prime Media in a $131.9m deal. The transaction will require approval from at least 50 per cent of Prime’s shareholders, and Seven West has indicated that investors who hold some 43.5 per cent of Prime’s shares have already expressed support for the deal. Seven West CEO James Warburton says the deal will extend the group’s audience reach and provide advertisers and media buyers with access to metropolitan and regional markets via a single platform. Seven’s previous bid for Prime in 2019 was blocked by key shareholders.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, PRIME MEDIA GROUP LIMITED – ASX PRT

Odds of Crown buyout lengthen

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Original article by Lachlan Moffet Gray
The Australian – Page: 17 : 28-Oct-21

The Star Entertainment Group and private equity firm Blackstone are seen as potential bidders for Crown Resorts, given that both have previously made takeover plays for the casinos operator. The sale and leaseback of Crown’s casinos could be attractive to potential suitors. However, Larry Gandler of Credit Suisse says the appointment of a special manager to supervise Crown for two years will most likely rule out any sale and leaseback arrangement during this period.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN, THE STAR ENTERTAINMENT GROUP LIMITED – ASX SGR, THE BLACKSTONE GROUP LP, CREDIT SUISSE (AUSTRALIA) LIMITED

M&A to smash records

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Original article by Kanika Sood, Anthony Macdonald, Yolanda Redrup
The Australian Financial Review – Page: 1 & 20 : 19-Oct-21

Data from Refinitiv shows that $US350bn ($495bn) worth of takeover bids in Australia and New Zealand have been announced so far in 2021. This is three times the long-term average, and Takeovers Panel president Alex Cartel describes it as the hottest mergers and acquisitions environment in decades. Deal-making activity is being driven by factors such as the large amounts of cash on many companies’ balance sheets in the wake of the pandemic and the prospect of interest rates remaining low for some time. Almost $10bn worth of takeover bids involving Australian-listed were announced on 18 October.

CORPORATES
REFINITIV AUSTRALIA PTY LTD, AUSTRALIA. TAKEOVERS PANEL

BHP flags improved offer for Noront

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Original article by Nick Evans
The Australian – Page: 16 : 2-Sep-21

The board of Canadian nickel miner Noront Resources has noted that Andrew Forrest’s Wyloo Metals has not yet made a binding offer for the company, and it may never make such an offer. Noront is continuing to back the $C325m ($351.5m) takeover bid from BHP, arguing that is the only binding offer that has been made. BHP’s bid values Noront at $C0.55 per share, and the resources group has not ruled out matching or topping Wyloo’s non-binding offer of $C0.70 a share.

CORPORATES
NORONT RESOURCES LIMITED, BHP GROUP LIMITED – ASX BHP, WYLOO METALS PTY LTD

Cashed-up Forrest trumps BHP in nickel bidding war

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Original article by Brad Thompson, Peter Ker
The Australian Financial Review – Page: 12 & 16 : 1-Sep-21

Andrew Forrest’s Wyloo Metals has increased its takeover bid for Canadian nickel explorer Noront Resources to $C0.70 per share. Wyloo had initially offered just $C0.315 per share, before BHP upped the ante with an offer of $C0.55 per share. Wyloo holds a stake of about 25 per cent in Noront, although this could be increased to 37 per cent via a convertible loan. Forrest has indicated that Noront could potentially remain a listed company if Wyloo’s takeover bid succeeds.

CORPORATES
WYLOO METALS PTY LTD, NORONT RESOURCES LIMITED, BHP GROUP LIMITED – ASX BHP

BHP sale could hurt its credit rating

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Original article by Nick Evans
The Australian – Page: 17 : 25-Aug-21

S&P Global Ratings says BHP’s proposed deal to merge its petroleum division with Woodside Petroleum will further increase its reliance on iron ore and make its earnings less diversified than rivals such as Rio Tinto and Glencore. BHP currently has a credit rating of ‘A’ from S&P, which has put it on CreditWatch negative; S&P has also flagged the possibility that the Woodside deal could prompt it to downgrade BHP’s credit rating by two notches, to ‘BBB+’.

CORPORATES
BHP GROUP LIMITED – ASX BHP, WOODSIDE PETROLEUM LIMITED – ASX WPL, S&P GLOBAL RATINGS

Spark’s $5.2b takeover tactics are well received

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Original article by Elouise Fowler
The Australian Financial Review – Page: 12 & 18 : 24-Aug-21

Shares in Spark Infrastructure rose by two per cent on 23 August after it was revealed its board had agreed to a $5.2 billion takeover offer from a consortium led by private equity firm Kohlberg Kravis Roberts and the Ontario teachers’ pension fund. Dougal Maple-Brown from Maple-Brown Abbott, which owns a stake in Spark, said that the Spark board had done a good job in getting the consortium to increase its original offer, while the transaction will be undertaken by means of a scheme of arrangement

CORPORATES
SPARK INFRASTRUCTURE GROUP – ASX SKI, KOHLBERG KRAVIS ROBERTS AND COMPANY, ONTARIO TEACHERS’ PENSION PLAN, MAPLE-BROWN ABBOTT LIMITED

Woodside investors cautious on deal

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Original article by Perry Williams
The Australian – Page: 16 : 19-Aug-21

Allan Gray Australia MD Simon Mawhinney says there are a lot of "unknowns" with regard to Woodside Petroleum’s proposed deal to merge with the petroleum division of BHP. He says the biggest question is just what Woodside investors will gain in return for giving BHP shareholders a 48 per cent stake in the oil and gas producer. Meanwhile, Woodside has posted an underlying net profit after tax of $US354m for the first half of 2021, and revenue of $US2.5bn.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP GROUP LIMITED – ASX BHP, ALLAN GRAY AUSTRALIA PTY LTD