Weekly Reports | 11:28 AM
This story features PREMIER INVESTMENTS LIMITED, and other companies.
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The company is included in ASX200, ASX300 and ALL-ORDS
A brief look at important company events and economic data releases next week.
For a more comprehensive preview of next week’s events, please refer to “The Monday Report”, published each Monday morning. For all economic data release dates, ex-div dates and times and other relevant information, please refer to the FNArena Calendar.
The week that was in Australian finance:
- As detailed by the RBA Governor at Parliament’s House Standing Committee on Economics, the war in the Middle East, via higher energy prices, will keep inflation higher for longer.
- This week the Federal Reserve hiked the Fed funds rate by 25bp for the first time in three years. Global bond yields have been rising, the world is facing higher inflation, with Australia particularly vulnerable.
- Equity markets have taken the global benchmark rate rise in their stride. Arguably, markets were already discounting a more hawkish Fed, and the sensitivity to higher bond yields/rates is more about the speed of the rise, rather than the absolute change, albeit at some stage higher rates become economically contractionary.
- In Australia, the RBA has been on the front foot with multiple public discussions and presentations over the last couple of weeks. They have not been shy in coming forward about their concerns on stubborn inflation and the need to make sure it does not become embedded in the economy.
- The next RBA rates decision meeting is Sept 29th, over a week out, and as stressed again by UBS, which is forecasting two more 25bp rate hikes, including one at the coming meeting and, increasingly, a second one at the November meeting.
- Inflation is being fuelled by an AI investment boom and the oil price spike, which is forecast to lift the CPI in coming months to around 4% y/y, UBS states.
- Rates are going up in Australia and are likely to stay higher for longer, particularly if the trajectory of the war in the Middle East doesn’t improve.
- There is around an 80% chance of a Sept hike being priced by the market, or a 20bp rise.
- On the positive side, Australian investors are enjoying dividend payment season, with a forthcoming 83 companies dishing out $16bn next week, with around $37.9bn from 328 companies to be paid over the eight weeks to October 30 from Sept 1.There have been some positive Investor Day updates this week and out-of-season companies like Premier Investments ((PMV)) are on the calendar to report next week.
- The ASX200 is largely unchanged over the last week, with Healthcare the standout, up 4% and now only down -15% or so over the last year.
- Materials and Energy, the annual outperformers, up 37% and 32%, respectively, over the last year, took a breather this week and were on the back foot. InfoTech remains the laggard, down slightly for the week and off -45% over the last year.
The team at FNArena wishes you a great weekend.
Corporate news in the week that was:
- Crimson Education’s hostile takeover of Kip McGrath Education Centres ((KME)) is gaining shareholder support, with Crimson reportedly prepared to increase its offer to 74c per share if it reaches the 90% compulsory acquisition threshold
- Hilco Capital’s sale of Australian fashion retailer Cue Clothing and sister brand Veronika Maine has yet to secure a buyer, while Cue CEO Melanie Remai has resigned after less than 18 months in the role
- Macquarie Asset Management ((MQG)) is preparing to sell its 50% stake in the $3bn Port of Newcastle, with Dalrymple Bay Infrastructure ((DBI)) considering a bid
- Canada’s Element Fleet Management has withdrawn from the $860m auction for FleetPartners Group ((FPR)) after declining to submit a revised bid
- New Zealand fuel retailer Waitomo has hired Jarden to pursue ExxonMobil’s roughly NZ$1bn New Zealand fuel business as the formal auction gets underway
- Charter Hall Group ((CHC)) has increased its stake in Abacus Group ((ABG)) to 7.04%, fuelling takeover speculation as Abacus’ share price weakens
- National Reconstruction Fund Corporation is investing $55m of senior secured debt in Global Resource Recovery to expand its Darwin chemical waste recycling and logistics infrastructure
- AirTrunk is seeking around SG$2bn of bank debt to finance asset acquisitions and refinancing for its proposed Singapore REIT
- Future Secure AI is nearing completion of a pre-IPO convertible note raising backed by Macquarie Asset Management ((MQG)), Square Peg and other investors, with the notes set to convert at a maximum $1.8bn valuation upon a planned ASX float
- FleetPartners ((FPR)) has advanced SG Fleet ((SGF)), Orix and a Sumitomo-led consortium to further due diligence after all three increased their takeover offers, while Element has withdrawn from the auction
- Healthscope’s lenders have selected a Calvary Health Care-led consortium to acquire and divide the private hospital operator’s 25 hospitals following its receivership
- Coronis has reportedly offered around $20m for The Agency Group Australia’s ((AU1)) 5,481-property rental book, while The Agency is separately facing a whole-of-company takeover bid from Aura
- Brookfield has completed exclusive due diligence on its $3.6bn takeover proposal for Reliance Worldwide ((RWC)) and is expected to move towards a binding offer, while Reliance has commenced a go-shop process seeking superior proposals
- Firmus Technologies is reportedly pitching an IPO of up to $7bn at a valuation of around $50bn
- Minerals 260 ((MI6)) is seeking to raise $250m to advance its Bullabulling gold project in Western Australia, with Argonaut, Bell Potter and Euroz Hartleys leading the raising
- Netwealth Group ((NWL)) will acquire AI-enabled advice workflow platform Paradino for $20m upfront, with up to $9m in additional earn-out and retention payments
- ·EQ Resources ((EQR)) has signed a US tungsten deal worth more than $105m and will take a 10% joint venture stake
- Ingenia Communities Group ((INA)) is resisting Warburg Pincus’ hostile $2.9bn takeover bid, arguing the $4.75-per-share offer undervalues the company and its proposed acquisition of Peet
- Baiada Poultry has rejected private equity approaches and intends to remain family-owned while investing $600m in a new NSW processing plant
- Partners Group and Quadrant Private Equity are in exclusive talks to merge Guardian Childcare and Affinity Education into a childcare group valued at around $2bn
- JANA Investment Advisers is reportedly in negotiations to be sold to London-based consultancy Lane Clark & Peacock
- Cue Clothing and Veronika Maine have entered receivership, with Hilco Capital appointing receivers to restructure the businesses and pursue a sale
- ·Northleaf Capital has reportedly made the final two bidders for NZ ferry operator StraitNZ, valued at NZ$500m-NZ$1bn, after Basalt exited the auction
- Rio Tinto ((RIO)) is considering a $2bn-$3bn selldown of its Pilbara infrastructure assets, with Apollo, KKR, Brookfield and Blackstone among private capital groups assessing the opportunity
- Zip Co ((ZIP)) has commenced its on-market share buyback of up to $50m
- Hancock Prospecting is investing $8.8m in White Cliff Minerals ((WCN)) via a placement, taking a 13.5% stake and becoming the company’s largest shareholder
- Wiluna Mining has launched a $180m IPO at $0.65-$0.85 per share, targeting an ASX relisting at a market capitalisation of up to $539.4m
- Pacific Equity Partners may ultimately seek an ASX listing for an enlarged Healthe Care
- Reliance Worldwide ((RWC)) agrees to a $4bn takeover by Brookfield at $4.75 per share, with completion expected in 1Q27
- Antipodes agrees to acquire Bennelong Funds Management, adding around $4bn in investments
- Viva Leisure ((VVA)) appoints EY to market its Meridium Global technology and payments platform to prospective buyers
- Austal ((ASB)) board reportedly seeks a whole-company takeover as Hanwha and Wildcat compete for Austal USA with bids of up to US$1.35bn
- First-round bids land for Apax’s $1.5bn sale of Pickles Auctions, with EQT reportedly leading an all-private-equity field
- Bain Capital emerges as the leading bidder for Blackstone’s $1bn-plus Australian clinical trials business Nucleus Network
- Emerald Resources ((EMR)) secures a US$200m acquisition facility from Sprott and Macquarie, scalable to US$400m, to fund future gold acquisitions
- TPG closes its TECA private equity fund at $1.85bn, exceeding its hard-cap target
- MA Financial ((MAF)) has around $670m of problem loans in its $2.3bn real estate credit fund as stalled property projects pressure the portfolio
- Firmus pitches a US$5bn IPO at an implied valuation above US$60bn, while questions are raised over disclosure gaps and data centre claims
- Firmus names Meta as a cornerstone customer for Project Southgate, while prospectus forecasts point to negative free cash flow of -US$2.5bn in 1H27
- Swipejobs advances plans for a potential $2bn IPO, arranging Sydney and Melbourne fund manager meetings following its $16m acquisition of Expert360
- Goodman Group ((GMG)) raises US$455m for its US$2.7bn Hong Kong data centre partnership to fund the HKG10 development
- Kelsian Group ((KLS)) has received FIRB approval for the $161m sale of its tourism portfolio to Journey Beyond
- MA Financial ((MAF)) has acquired a 50% stake in Melbourne’s The Glen Shopping Centre for $327.5m and launched a new large-format retail fund
- RES has launched a sale process for Queensland’s Moah Creek wind farm, appointing MA Moelis Australia ((MAF)) to seek prospective investors
- China’s Tuhu has reportedly secured exclusivity for Continental’s mycar, beating Allegro Funds
- ColCap is preparing a record $3bn mortgage-backed bond issue, exceeding its previous $2.7bn issuance
- Americold has launched a $2bn sale of its APAC and European cold storage operations, including assets in Australia and New Zealand
- Washington H. Soul Pattinson ((SOL)) has joined EQT and Carlyle in the $1bn auction for staffing and services group Programmed
- National Australia Bank ((NAB)) has emerged as a suspected bidder for HSBC’s Australian deposit book
- Firmus is reportedly targeting a 22 October IPO at a valuation of up to US$60bn, with plans to deploy around 2m GPUs by 2028 and nine major customer accounts including Meta
- Works Media Group is seeking $5m from private investors to fund expansion
- Abacus Storage King ((ASK)) has launched a $121m block trade in Storage King through Barrenjoey Capital Partners ((MFG))
- Aware Super and Birdwood Energy are backing Victoria’s $700m Baranduda battery project alongside the State Electricity Commission of Victoria
For a calendar of earnings result releases and a summary of earnings results to date, refer to FNArena’s Corporate Results Monitor (https://www.fnarena.com/index.php/reporting_season/)
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CHARTS
For more info SHARE ANALYSIS: ABG - ABACUS GROUP
For more info SHARE ANALYSIS: ASB - AUSTAL LIMITED
For more info SHARE ANALYSIS: AU1 - AGENCY GROUP AUSTRALIA LIMITED
For more info SHARE ANALYSIS: CHC - CHARTER HALL GROUP
For more info SHARE ANALYSIS: DBI - DALRYMPLE BAY INFRASTRUCTURE LIMITED
For more info SHARE ANALYSIS: EMR - EMERALD RESOURCES NL
For more info SHARE ANALYSIS: EQR - EQ RESOURCES LIMITED
For more info SHARE ANALYSIS: FPR - FLEETPARTNERS GROUP LIMITED
For more info SHARE ANALYSIS: GMG - GOODMAN GROUP
For more info SHARE ANALYSIS: INA - INGENIA COMMUNITIES GROUP
For more info SHARE ANALYSIS: KLS - KELSIAN GROUP LIMITED
For more info SHARE ANALYSIS: KME - KIP MCGRATH EDUCATION CENTRES LIMITED
For more info SHARE ANALYSIS: MAF - MA FINANCIAL GROUP LIMITED
For more info SHARE ANALYSIS: MFG - MAGELLAN FINANCIAL GROUP LIMITED
For more info SHARE ANALYSIS: MI6 - MINERALS 260 LIMITED
For more info SHARE ANALYSIS: MQG - MACQUARIE GROUP LIMITED
For more info SHARE ANALYSIS: NAB - NATIONAL AUSTRALIA BANK LIMITED
For more info SHARE ANALYSIS: NWL - NETWEALTH GROUP LIMITED
For more info SHARE ANALYSIS: PMV - PREMIER INVESTMENTS LIMITED
For more info SHARE ANALYSIS: RIO - RIO TINTO LIMITED
For more info SHARE ANALYSIS: RWC - RELIANCE WORLDWIDE CORP. LIMITED
For more info SHARE ANALYSIS: SOL - WASHINGTON H. SOUL PATTINSON AND COMPANY LIMITED
For more info SHARE ANALYSIS: VVA - VIVA LEISURE LIMITED
For more info SHARE ANALYSIS: WCN - WHITE CLIFF MINERALS LIMITED
For more info SHARE ANALYSIS: ZIP - ZIP CO LIMITED

