Pushpay Finally Sells

May 11, 2023

Good Morning,

The Commerce Commission is launching an investigation into potential breaches of the Fair Trading Act by retirement villages, Air New Zealand is continuing to build up its international capacity, Donald Trump could face questions on sexual abuse verdict in CNN town hall, Kiwi church payment company Pushpay to delist after sale for over $1.6 billion.

Let's jump in.

Before The Bell

Markets

  • Britain's top equity index (FTSE 100) slipped on Wednesday as strength in sterling weighed on dollar earners such as Unilever ahead of the Bank of England's policy decision on Thursday when it is seen raising interest rates further (RT)

  • Asian stocks fell broadly on Wednesday as investors took a risk-off approach ahead of U.S. consumer price inflation data due later in the day that could influence the Federal Reserve's policy decisions (RTT)

  • European shares dropped on Wednesday as strong underlying inflation in the U.S. indicated that the Federal Reserve may need to keep interest rates elevated for a while, while a slew of upbeat corporate earnings helped stave off a steeper fall (RT)

  • The Nasdaq led gains among Wall Street's main indexes on Wednesday as a slightly lower-than-expected increase in inflation last month indicated that the Federal Reserve's rapid interest rate hikes were yielding result (RT)

Earnings and Data

  • New Zealand sneaker company Allbirds told investors on the Nasdaq stock exchange of larger-than-expected losses in the year's first quarter. The company reported revenue of US$54.35 million ($85.74m) for the quarter ended March 2023, a fall of 13.4% (Stuff)

  • Holiday travel is still only at 57% of pre-Covid levels in the year to date while hotels are operating at an average 66% capacity, partly due to labour shortages (NBR)

News Summary

  • The Commerce Commission is launching an investigation into potential breaches of the Fair Trading Act by retirement villages (Stuff)

  • Westpac customers have again woken to lighter bank accounts than they expected after some direct debits were taken twice (Stuff)

  • The Office of the Privacy Commissioner has started an investigation into the huge privacy breach at lender Latitude Financial (Stuff)

  • Two of New Zealand’s media powerhouses, Stuff and Sky Television, are teaming up for a special multimedia cross-channel offering dedicated to the 2023 Fifa Women’s World Cup (Stuff)

  • New Zealand Rugby has signed a memorandum of understanding with the Japan Rugby Football Union to “explore strategic and commercial opportunities” including more matches, not just between national rep teams, but also between Super Rugby and Japan League One teams (NBR)

  • Financial advice provider Aurora Financial has been censured by the Financial Markets Authority for misleading existing and potential clients about returns at its newly-launched KiwiSaver funds (NBR)

  • Succession is afoot in one of the country’s most esteemed car dealing empires as NBR Lister Sir Colin Giltrap has apparently vacated the chair of Giltrap Group Holdings, while his two sons Richard and Michael are now equal shareholders (NBR)

  • Property developer and NBR Lister Chris Meehan has put his 36-metre superyacht Miss Silver up for sale, saying the family hasn’t enough time to use it (NBR)

  • Air New Zealand is continuing to build up its international capacity, with CEO Greg Foran today telling TRENZ tourism conference attendees that the number of seats it is providing across its global network has reached 91% of pre-Covid levels (NBR)

  • Morgan Stanley Wealth Management’s co-head Matthew Nicholls has left the firm, after just six months in the top job (AFR)

  • George Santos surrenders to face federal charges of fraud and money laundering (Guardian)

  • Donald Trump could face questions on sexual abuse verdict in CNN town hall (Guardian)

  • At least 21 dead as wildfires rage across Urals and Siberia (Guardian)

Deal Flow

Investments / M&A

  • Air New Zealand will invest $3.5 billion in new aircraft and refurbishing its existing fleet over the next five years, chief executive Greg Foran says (Stuff)

  • Kiwi church payment company Pushpay to delist after sale for over $1.6 billion (Stuff)

  • ASX-listed Allkem, the lithium producer formerly known as Orocobre, has struck a $US10 billion ($15 billion) merger agreement with New York Stock Exchange-listed Livent Corp, Street Talk can reveal (AFR)

  • Amazon plans to open new warehouses and hire more people in Europe, an executive said on Tuesday, even as squeezed consumer spending forces the tech giant to cut costs globally and lay off some employees (RT)

  • Australia's Macquarie Group Ltd is looking to sell its North American port facilities business, Ceres Terminals, for about $1 billion, the Wall Street Journal reported on Tuesday citing sources familiar with the matter (RT)

  • Pierre Lassonde, a Canadian mining industry veteran, has made an offer to invest in Teck Resources Ltd's coal business, in a bid to thwart Glencore Plc's hostile attempt to merge with Teck (RT)

  • U.S. private equity group KKR & Co Inc and Australia's Macquarie Asset Management are among potential bidders for the waste and recycling management arm of Singapore's energy group Sembcorp in a deal that could value the unit at around $500 million, said two sources with knowledge of the matter (RT)

  • JD Sports Fashion has proposed buying France's Groupe Courir for an enterprise value of 520 million euros ($572 million), in what would be the British group's first acquisition since setting out ambitious expansion plans in February (RT)

  • Occidental Petroleum Corp. redeemed $647 million, or about 6.5%, of Berkshire Hathaway Inc.’s preferred stock as the oil company begins paying back Warren Buffett four years after he helped finance its acquisition of Anadarko Petroleum Corp (BBG)

  • Prosus NV is exploring potential divestments from its emerging-markets financial technology company PayU, according to people familiar with the matter (BBG)

VC & Fundraising

  • Venture capital firm Movac has raised $202 million for its latest venture capital fund, after lining up the New Zealand Super Fund, Fisher Funds, Generate KiwiSaver, and the Government Superannuation Fund as key institutional investors (NBR)

  • The legal minds at Herbert Smith Freehills expect private equity will start buying venture capital-backed tech businesses, as PE funds seek to deploy funds and capital dries up in VC land (AFR)

  • Brookfield Asset Management has raised $19 billion for new funds this year and says it’s relying heavily on cash-rich investors in the Middle East and Asia to fuel its growth (BBG)

Equity Raises

  • The Nasdaq-listed gaming business Light & Wonder will begin trading on the ASX by May end, after running through a set of fundie meetings in March arranged by Jarden, Goldman Sachs and Flagstaff Partners (AFR)

  • Punchy growth forecasts, a restocked board and powerful in-house CRM systems. Welcome to this year’s chunkiest IPO contender, chemicals distributor Redox (AFR)

  • Planning for Virgin Australia's upcoming initial public offering (IPO) is "well advanced", Chairman Ryan Cotton said on Wednesday in an internal email that also outlined bonus payments to the airline's shareholders and staff after a return to profit (RT)

  • Japanese energy giant Eneos Holdings Inc is considering spinning off subsidiary JX Nippon Mining & Metals, with a possible option of listing its shares, the Nikkei newspaper reported on Wednesday (RT)

  • A digital infrastructure provider backed by Singapore’s state-owned investment firm Temasek Holdings Pte is considering raising as much as $1 billion in a funding round before its potential initial public offering, according to people with knowledge of the matter (BBG)

  • Abu Dhabi’s main energy company will sell a 15% stake in its maritime logistics unit in an initial public offering, kicking off the second listing of one of its businesses this year (BBG)

  • Mobvoi, a Chinese artificial intelligence company and smart device maker, has selected banks for a Hong Kong initial public offering that could raise about $200 million to $300 million, according to people familiar with the matter (BBG)

  • Virgin Australia Airlines Pty Ltd. is close to paying A$730 million ($494 million) to its private equity owner Bain Capital, months before a possible listing in Sydney, according to a person familiar with the matter (BBG)

Debt

  • Anacacia Capital’s courier, warehousing and logistics provider Direct Couriers Group Pty Ltd is exploring a refinancing with incumbent lender Commonwealth Bank of Australia, while its buyer search drags on (AFR)

Daily Picks

  • EU draft rules propose tougher cybersecurity labelling rules for Amazon, Google, Microsoft (RT)

Job Board

New Zealand

  • ASB rural banking graduate - Apply here

  • Waterman Capital investment analyst - Apply here

Australia

  • Citadel Securities graduate and intern roles - Apply here

  • Goldman Sachs Investment Banking Intern - Apply here

  • IMC graduate and intern roles - Apply here

  • Jarden

    • Graduate role - Apply here

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  • Macquarie graduate roles - Apply here

  • Optiver

    • Graduate role - Apply here

    • Internships - Apply here

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