Lendlease and Vicinity both takeover targets, says JPM

Original article by Nick Lenaghan
The Australian Financial Review – Page: 31 : 23-Apr-19

JP Morgan’s Global REIT Radar report suggests that a sharp fall in the share prices of Lendlease and Vicinity Centres could make them potential takeover targets. Ben Brayshaw of JP Morgan says both stocks are currently trading well below the firm’s estimate of their net asset value. The report also notes that real estate investment trusts have delivered a total return of 18.5 per cent over the last year, while global equities have returned just 7.6 per cent.

CORPORATES
LEND LEASE GROUP LIMITED – ASX LLC, VICINITY CENTRES – ASX VCX, JP MORGAN AUSTRALIA LIMITED, CROWN ESTATE, MAURICE BLACKBURN PTY LTD, SUPREME COURT OF NEW SOUTH WALES

Stan tipped for subscriber lift from Disney deal

Original article by Max Mason
The Australian Financial Review – Page: 29 : 19-Feb-19

Fraser McLeish of MST Marquee expects subscription video-on-demand provider Stan to have enjoyed strong growth in its customer base over the 2018-19 summer, following its content deal with Walt Disney Company in December. Nine Entertainment Company will shortly release the first subscription data for Stan since August, when it had 1.1 million active subscribers. MST Marquee values Stan at $500m, and McLeish believes that the SVOD provider’s value is not being reflected in Nine’s share price.

CORPORATES
STAN ENTERTAINMENT PTY LTD, WALT DISNEY COMPANY, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, MST MARQUEE, FAIRFAX MEDIA LIMITED, GRANT SAMUEL AND ASSOCIATES PTY LTD

Atlas facing possible distress

Original article by Paul Garvey
The Australian – Page: 19 : 17-Jul-18

An independent expert’s report from BDO has valued Atlas Iron at between $0.015 and $A0.03 per share, compared with Hancock Prospecting’s offer of $0.042 per share. BDO has recommended that shareholders accept the offer in the absence of a higher bid. BDO warned that Atlas will be financially vulnerable if the price discount for its low-grade iron ore is sustained, while its Mt Webber mine would have to close. Atlas directors have also used its target statement to recommend that shareholders accept the offer.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, HANCOCK PROSPECTING PTY LTD, BDO AUSTRALIA LIMITED, ALTURA MINING LIMITED – ASX AJM, MINERAL RESOURCES LIMITED – ASX MIN, FORTESCUE METALS GROUP LIMITED – ASX FMG

MinRes losing battle for Atlas

Original article by Paul Garvey
The Australian – Page: 21 : 20-Jun-18

Atlas Iron has given Mineral Resources three days to match the rival bid from Gina Rinehart’s Hancock Prospecting. Mineral Resources’ share price has fallen sharply since launching its scrip bid; based on its closing price of $A16.15 on 19 June, the implied value of its offer has fallen to $A0.028 per share, compared with Hancock’s cash bid of $A0.042. Atlas’s port access rights at Port Hedland are a key attraction for the bidders – despite the Western Australian Government’s ruling that junior miners have priority access – along with accumulated tax losses that exceed $A500m.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, MINERAL RESOURCES LIMITED – ASX MIN, FORTESCUE METALS GROUP LIMITED – ASX FMG

Santos share price now at right level

Original article by Simon Evans
The Australian Financial Review – Page: 17 & 28 : 24-May-18

Troy Angus of Paradice Investment Management says Santos’s rejection of a takeover offer from Harbour Energy was justified, saying it did not reflect the growth potential of some assets. Santos CEO Kevin Gallagher has also defended the decision to spurn the $A14.4bn bid, after Harbour Energy questioned the oil and gas group’s medium-term growth opportunities. Santos shares closed 8.4 per cent lower at $A5.90 on 23 May, but Gallagher says the stock is now at an appropriate after rising in recent months.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, PARADICE INVESTMENT MANAGEMENT PTY LTD, CONOCOPHILLIPS, ENN ECOLOGICAL HOLDINGS COMPANY LIMITED, HONY CAPITAL, AUSTRALIAN LABOR PARTY

Santos shares slip as Harbour stands firm

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 18-May-18

Analysts differ on the merits of Harbour Energy’s bid for Santos, after the suitor submitted a binding offer for the oil and gas group. Harbour Energy has formally offered $US4.98 per share, which equates to about $A6.63 per share and is the same price as it had initially proposed. James Byrne of Citigroup and Andrew Hodge of Macquarie Equities expect Santos directors to reject the bid, although the Hayberry Global Fund’s Matthew Blumberg says the bid is "probably fair". Santos shares closed 1.9 per cent lower at $A6.20 on 17 May.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, CITIGROUP PTY LTD, MACQUARIE EQUITIES LIMITED, HAYBERRY GLOBAL FUND, ENN ECOLOGICAL HOLDINGS COMPANY LIMITED, HONY CAPITAL, EIG GLOBAL ENERGY PARTNERS, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Wilson warns on rotten AMP

Original article by Sarah Turner
The Australian Financial Review – Page: 13 & 26 : 16-May-18

Fund manager Geoff Wilson says former AMP employees have told him that its financial planning division is completely "rotten" and the banking royal commission’s revelations of misconduct are just the beginning. Wilson says the scandals at AMP have made it difficult to value the stock, and there may not be a price at which it constitutes a "buy". There is speculation that the royal commission may result in stricter regulation of the financial services sector, but Antipodes Partners’ Graham Hay cautions against any action that may actually reduce competition.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, ANTIPODES PARTNERS

Mineral Resources in scrip offer for AWE

Original article by Matt Chambers
The Australian – Page: 19 : 12-Dec-17

Shares in Mineral Resources closed eight per cent lower at $A16.39 on 11 December after it launched a $A510m takeover bid for AWE Limited. The scrip bid was initially pitched at $A0.80 per share, but the downturn in Mineral Resources’ stock reduced the value of its bid to $A0.73, in line with the rival bid from China Energy Reserve & Chemical Group. Mineral Resources MD Chris Ellison says AWE’s stake in the Waitsia gas field is of primary interest to his company, both to supply its own operations and Western Australian gas users.

CORPORATES
AWE LIMITED – ASX AWE, MINERAL RESOURCES LIHIR PTY LTD, CHINA ENERGY RESERVE AND CHEMICAL GROUP, ORIGIN ENERGY LIMITED – ASX ORG, LATTICE ENERGY LIMITED, BEACH ENERGY LIMITED – ASX BPT, SHA ENERGY, QUADRANT ENERGY PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL

Rio hit with class action over Mozambique

Original article by Peter Ker
The Australian Financial Review – Page: 17 : 25-Oct-17

US law firm Hagens Berman has filed a class action against Rio Tinto regarding the valuation of the resources group’s coal assets in Mozambique. Several Australian law firms are also considering a class action lawsuit, while the US Securities & Exchange Commission recently launched legal action against Rio Tinto. The company is also facing class actions over corruption allegations in Guinea.

CORPORATES
RIO TINTO LIMITED – ASX RIO, HAGENS BERMAN SOBOL SHAPIRO LLP, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION, GREAT BRITAIN. SERIOUS FRAUD OFFICE, AUSTRALIAN FEDERAL POLICE

Network Ten equity has no value, according to KPMG report

Original article by Max Mason
The Australian Financial Review – Page: Online : 11-Oct-17

An independent expert’s report from KPMG has concluded that the Ten Network has an equity value of between negative $A529.2m and negative $A543.7m, or negative $1.055bn when the debt claims of CBS and 21st Century are taken into account. The negative valuation could make it harder for Lachlan Murdoch and Bruce Gordon to challenge the transfer of Ten’s shares to CBS Corporation. They will have a deadline of 13 October to decide whether to launch a legal challenge.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, KPMG AUSTRALIA PTY LTD, CBS CORPORATION, KORDA MENTHA AND COLLEAGUES PTY LTD, WIN CORPORATION PTY LTD, 21ST CENTURY FOX INCORPORATED