SHARE ISSUES – AUSTRALIA

Santos pitches value of shares in long term

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 23-Nov-15

Retail investors will be offered shares in Santos at $A3.85 apiece in the oil and gas producer’s entitlement offer. Santos is seeking to raise $A1.375bn from retail investors and $A2.5bn overall. The rights issue is part of a broader strategy aimed at reducing group debt. Neil Beveridge of Bernstein suggests that Santos could attract another private equity buyer, after the group rebuffed a bid from Scepter Partners in October 2015.

CORPORATES
SANTOS LIMITED – ASX STO, BERNSTEIN AND ASSOCIATES, SCEPTER PARTNERS, HONY CAPITAL LIMITED, BLOOMBERG LP

CEOs rapped for ‘lazy’ $20b rights splurge

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Original article by Simon Evans
The Australian Financial Review – Page: 24 : 13-Nov-15

Clime Asset Management’s John Abernethy says retail investors have questioned whether some recent capital raisings by large Australian companies were necessary. More than $A20bn has been raised by banks and other big companies in recent months, which Abernethy describes as "excessive and expensive". Santos shares were heavily sold down on 12 November 2015, in response to the oil and gas producer’s capital raising.

CORPORATES
CLIME ASSET MANAGEMENT PTY LTD, SANTOS LIMITED – ASX STO, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MYER HOLDINGS LIMITED – ASX MYR, ORIGIN ENERGY LIMITED – ASX ORG, TREASURY WINE ESTATES LIMITED – ASX TWE, PERPETUAL LIMITED – ASX PPT, UNITED STATES. FEDERAL RESERVE BOARD

Chinese rescue Santos

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Original article by Simon Evans, Angela Macdonald-Smith, Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 1 & 12 : 10-Nov-15

China-based Hony Capital will initially acquire a 9.9 per cent stake in Santos for $A500m, although its participation in a $A2.5bn rights issue means the private equity firm will invest about $A700m in the oil and gas group in total. Santos investors will be offered new shares at $A3.85 apiece, compared with the group’s closing price of $A5.91 on 6 November 2015. Meanwhile, Clough CEO Kevin Gallagher will become CEO of Santos in early 2016.

CORPORATES
SANTOS LIMITED – ASX STO, HONY CAPITAL LIMITED, CLOUGH LIMITED, WOODSIDE PETROLEUM LIMITED – ASX WPL, PIZZA EXPRESS, SWISSE WELLNESS PTY LTD, BIOSTIME INTERNATIONAL HOLDINGS LIMITED, SCEPTER PARTNERS, BERNSTEIN AND ASSOCIATES, DEUTSCHE BANK AG, LAZARD PTY LTD, LEGEND GROUP LIMITED, TEMASEK HOLDINGS (PTE) LTD

Westpac shares climb after capital raising, rate increase

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Original article by Clancy Yeates
The Australian Financial Review – Page: 1 & 10 : 20-Oct-15

Shares in Westpac closed three per cent higher at $A31.34 on 19 October 2015, after being in a trading halt for almost a week. Clime Investment Management’s John Abernethy suggests that short selling in the wake of a $A3.5bn capital raising may have been the main driver of Westpac’s share price rise, rather than its move to lift mortgage interest rates by 0.2 per cent. Morningstar’s David Ellis says rival banks are likely to increase their own home loan rates.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, CLIME INVESTMENT MANAGEMENT LIMITED – ASX CIW, MORNINGSTAR PTY LTD, WATERMARK FUNDS MANAGEMENT PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, ALPHINITY INVESTMENT MANAGEMENT PTY LTD

Westpac to stick with dividend lift

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Original article by James Eyers
The Australian Financial Review – Page: 27 & 30 : 15-Oct-15

Westpac’s unaudited preliminary financial accounts for 2014-15 show that it has posted a full-year cash profit of $A7.82bn, which is three per cent higher than previously. Investors will receive a fully franked final dividend of $A0.94 per share, compared with $A0.92 in 2013-14, while Westpac also intends to pay a higher dividend in 2015-16. Westpac shares have been placed in a trading halt until 19 October 2015 due to the group’s $A3.5bn capital raising.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, MORGAN STANLEY AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, MOODY’S INVESTORS SERVICE INCORPORATED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Macquarie bulks up with Esanda

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Original article by Joyce Moullakis, Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 1 & 8 : 9-Oct-15

Macquarie Group will become one of Australia’s three largest vehicle financiers after paying $A8.2bn for the Esanda Dealer Finance business. The sale of Esanda will boost the ANZ Bank’s common equity tier one capital ratio. Macquarie will partially finance the acquisition via a capital raising, with plans to tap institutional investors for $A400m via a share placement. Macquarie shares traded at $A77.84 on 8 October 2015, prior to a trading halt.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ESANDA FINANCE CORPORATION LIMITED, AWAS AVIATION CAPITAL LIMITED, CROWN CASTLE AUSTRALIA PTY LTD, APACHE ENERGY LIMITED, THAMES WATER UTILITIES LIMITED, MOTO, JP MORGAN AUSTRALIA LIMITED, MACQUARIE CAPITAL PTY LTD, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, CADENCE CAPITAL LIMITED – ASX CDT, CREDIT SUISSE (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, HNA GROUP, NOMURA AUSTRALIA LIMITED, PEPPER GROUP LIMITED – ASX PEP

Bank raisings satisfy capital requirements

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Original article by Clancy Yeates
The Australian Financial Review – Page: 17 : 14-Aug-15

Australia’s big four banks have asked shareholders for a combined $A8 billion in new capital. The banks need extra funds to meet new regulatory requirements. Credit Suisse analyst Jarrod Martin estimates that the banks need $A28 billion in total. Analysts believe that any further increases in capital requirements will be met through retained earnings and dividend reinvestment plans.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BELL POTTER SECURITIES LIMITED, DEUTSCHE BANK AG

Bank raisings satisfy capital requirements

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Original article by Clancy Yeates
The Australian Financial Review – Page: 17 : 14-Aug-15

Australia’s big four banks have asked shareholders for a combined $A8 billion in new capital. The banks need extra funds to meet new regulatory requirements. Credit Suisse analyst Jarrod Martin estimates that the banks need $A28 billion in total. Analysts believe that any further increases in capital requirements will be met through retained earnings and dividend reinvestment plans.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BELL POTTER SECURITIES LIMITED, DEUTSCHE BANK AG

Atlas adds $86m but well short of target

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Original article by Tess Ingram
The Australian Financial Review – Page: 17 : 21-Jul-15

The capital raising of Australian-listed Atlas Iron has fallen significantly short of its $A180m target. The iron ore producer has raised about $A30m from retail investors and around $A12m from institutional investors, while its contractors had previously agreed to subscribe to some $A44m worth of shares. Atlas shares were suspended from trading in April 2015, and the stock may resume trading on 27 July.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, McALEESE LIMITED – ASX MCS, QUBE HOLDINGS LIMITED – ASX QUB, MACA LIMITED – ASX MLD, WESTERN ASSET MANAGEMENT COMPANY, FORTRESS INVESTMENT GROUP LLC, SANKATY ADVISORS LLC, MARATHON ASSET MANAGEMENT LIMITED

Atlas founder keeps faith as raising looms

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Original article by Tess Ingram, Amanda Saunders
The Australian Financial Review – Page: 15 & 20 : 8-Jul-15

Atlas Iron’s current shareholders have agreed to contribute $A15m to the iron ore producer’s $A180m capital raising. Atlas MD David Flanagan is confident that the raising will be well-received, despite the 20 per cent fall in the iron ore price in recent weeks. Flanagan has concluded an international roadshow, and will shortly pitch the capital raising to Australian retail and institutional investors. Atlas will offer the new shares at $A0.05 apiece.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, PENGANA CAPITAL LIMITED