STRATEGIC PLANNING – AUSTRALIA

One listing definitely not in White’s plans

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Original article by Damon Kitney
The Australian – Page: 15 : 9-Jan-17

Ray White Real Estate chairman Brian White has ruled out an IPO. CFO Andrew Jamson says White hopes Australia’s largest real estate firm will remain a family-owned company into the fifth generation. Meanwhile, McGrath Limited’s shares are trading at around $A0.90, compared with an issue price of $A2.10 in late 2015, while founder John McGrath resigned as CEO in August 2016. Another family-owned real estate firm, LJ Hooker, dropped plans for an IPO in 2016.

CORPORATES
RAY WHITE REAL ESTATE, McGRATH LIMITED – ASX MEA, LJ HOOKER (AUSTRALIA) PTY LTD, BELL POTTER SECURITIES LIMITED, JP MORGAN AUSTRALIA LIMITED, LEIGHTON HOLDINGS LIMITED, RAMS HOME LOANS PTY LTD

Price spike breathes life into old mines

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 6-Jan-17

At $US77 per tonne in early January 2017, the price of iron ore is high enough to ensure profitability of mining projects that would otherwise be economically unfeasible. Several small Australian mining companies are reviewing their plans with the view of restarting or expanding their mines. Mount Gibson Iron intends to recommence production at Koolan Island’s main pit which ceased in November 2014.

CORPORATES
MOUNT GIBSON IRON LIMITED – ASX MGX, MINERAL RESOURCES LIMITED – ASX MIN, BC IRON LIMITED – ASX BCI, WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY, CLIFFS NATURAL RESOURCES INCORPORATED, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP

Wesfarmers, Woolies rule out pokies exit

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Original article by Sue Mitchell, Lucille Keen
The Australian Financial Review – Page: 13 : 20-Dec-16

Wesfarmers has no intention to exit the poker machine sector. Such a move would involve selling Coles 3,069 poker machines. Woolworths’ pubs and clubs business ALH also remains committed to its 12,000 poker machines. Independent Senator Nick Xenophon insists that a Senate inquiry is necessary to scrutinise the gambling industry. He warned that 2017 could be "a very unhappy year" for the sector.

CORPORATES
WESFARMERS LIMITED – ASX WES, COLES GROUP LIMITED, ALH AUSTRALIA LIMITED, GAMING TECHNOLOGIES ASSOCIATION LIMITED, ALLIANCE FOR GAMBLING REFORM, AUSTRALIA. PRODUCTIVITY COMMISSION

Packer crowns year by folding his China cards

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Original article by John Stensholt, Jessica Gardner
The Australian Financial Review – Page: 1 & 10 : 16-Dec-16

Crown Resorts has flagged its intention to focus on its casinos business in Australia. The group has agreed to sell a 13.4 per cent stake in the Melco Crown Entertainment venture in Macau for $A1.6bn, while it will not proceed wth the Alon casino project in Las Vegas. Crown will use the proceeds from the sale of the Melco stake to reduce debt, pay a special dividend and finance a share buyback. The group still intends to establish a separate real estate investment trust for its property assets.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN, MELCO CROWN ENTERTAINMENT LIMITED, ARNHEM INVESTMENT MANAGEMENT PTY LTD, ASPINALL’S CLUB LIMITED, DCN GAMES, MELCO INTERNATIONAL DEVELOPMENT LIMITED, CONSOLIDATED PRESS HOLDINGS LIMITED

Nova set to return more than nickel and dimes as prices rise

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Original article by Paul Garvey
The Australian – Page: 22 : 15-Dec-16

Independence Group has made the first shipment of nickel concentrate from the Nova mine in Western Australia, which it acquired in the 2015 takeover of Sirius Resources. Independence CEO Peter Bradford notes that the commencement of construction work at the Nova deposit coincided with a downturn in the mining industry, which in turn reduce the cost of developing the project. He adds that Independence is now looking at potential acquisitions, including gold assets.

CORPORATES
INDEPENDENCE GROUP NL – ASX IGO, SIRIUS RESOURCES NL

Homegrown mini-series driving a ratings resurgence at Foxtel

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Original article by Darren Davidson
The Australian – Page: 23 & 25 : 12-Dec-16

Pay-TV company Foxtel has invested heavily in the production of local dramas in 2016. This commitment has paid off, with Foxtel recording ratings growth and a number of Australian Academy of Cinema & Television Arts awards. Brian Walsh, Foxtel’s executive director of television, is upbeat about the outlook for 2017, but he concedes that competition for viewers will intensify. In addition to a slate of local productions, Foxtel will also have exclusive content from HBO in the US.

CORPORATES
FOXTEL MANAGEMENT PTY LTD, AUSTRALIAN ACADEMY OF CINEMA AND TELEVISION ARTS, HBO, NETFLIX INCORPORATED, AMAZON.COM INCORPORATED, AMAZON PRIME VIDEO, BRITISH BROADCASTING CORPORATION, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS

Seven to expand digital offering for tennis Open

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Original article by Jake Mitchell
The Australian – Page: 25 : 12-Dec-16

The Seven Network will provide live streams of more than 600 tennis matches during the 2016-17 summer, including the Australian Open. Seven will offer a paid version of its streaming service, which will feature exclusive content. However, chief digital officer Clive Dickens stresses that Seven will not charge a fee to view any matches. The ANZ Bank, Blackmores, Kia and Industry Super Funds will be among the major sponsors of Seven’s tennis coverage.

CORPORATES
SEVEN NETWORK LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, AUSTRALIAN OPEN TENNIS, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BLACKMORES LIMITED – ASX BKL, KIA MOTORS AUSTRALIA PTY LTD, INDUSTRY SUPER FUNDS, BUNNINGS GROUP LIMITED, AUSTRALIAN SUBSCRIPTION TELEVISION AND RADIO ASSOCIATION (ASTRA) INCORPORATED, FOXTEL MANAGEMENT PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS, INTERNATIONAL OLYMPIC COMMITTEE

Santos takes ‘sweat or exit’ action

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 & 18 : 9-Dec-16

Australian-listed oil and gas producer Santos aims to slash its net debt by $US1.5bn ($A2bn) by 2019 as part of a restructuring program. This will including moving non-core assets to a holding company, allowing the group to focus on five key growth assets. These include the Gladstone LNG project, its Cooper Basin gas assets and the Papua New Guinea LNG venture. Santos will also make its gas processing facilities available to rival gas producers. The non-core assets could potentially be sold in the future.

CORPORATES
SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, ENN HOLDINGS, AWE LIMITED – ASX AWE, AUSBIL INVESTMENT MANAGEMENT LIMITED, CLOUGH LIMITED, RBC CAPITAL MARKETS

Analysts cool on Origin’s petroleum plan

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 8-Dec-16

Ben Wilson of RBC Capital Markets has questioned Origin Energy’s lack of information regarding the proposal to spin off its conventional oil and gas assets. However, he notes that the partial demerger will reduce Origin’s debt and the company’s complexity, and adds that Origin could eventually also offload its stake in the Australia Pacific LNG project. Mark Samter of Credit Suisse says the demerger has merits, but he believes that Origin should have pursued a trade sale rather than an IPO.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, RBC CAPITAL MARKETS, CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIA PACIFIC LNG LIMITED, JP MORGAN AUSTRALIA LIMITED, BEACH ENERGY LIMITED – ASX BPT, CITIGROUP PTY LTD

Origin Energy spins off oil and gas business

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 & 20 : 7-Dec-16

Australian-listed Origin Energy has revealed plans for a partial demerger in 2017, with its conventional oil and gas assets to be held by a separately listed company. However, Origin will retain its stake in the Australia Pacific LNG project in Queensland, while it will not hold a stake in the new company. Origin CEO Frank Calabria says an IPO was deemed to offer the best value, although he adds that the group would be open to an offer that represented better value than a float. JP Morgan estimates that the assets that will be spun off are worth around $A1.8bn.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, JP MORGAN AUSTRALIA LIMITED, SANDON CAPITAL INVESTMENTS LIMITED – ASX SNC, TATTS GROUP LIMITED – ASX TTS, ILUKA RESOURCES LIMITED – ASX ILU, MACQUARIE CAPITAL PTY LTD, UBS HOLDINGS PTY LTD, ALLAN GRAY AUSTRALIA PTY LTD, AGL ENERGY LIMITED – ASX AGL, BEACH ENERGY LIMITED – ASX BPT, STANDARD AND POOR’S FINANCIAL SERVICES LLC, MOODY’S INVESTORS SERVICE INCORPORATED