Sudan Fighting, Markets Winning

Good Morning,

The army and RSF are battling over key sites in Sudan, budget changes could halt Victoria’s rail link to the airport, an Australian man has been charged with foreign interference after allegedly compiling a number of reports for spies working for another nation & Ford has launched hands-free driving on UK motorways.

Let’s jump in!

Before The Bell

Markets

• The NZX closed slightly higher than last week up 0.1%

• The ASX closed at its highest level in six weeks (AFR)

• The US benchmarks finished up for the week as there were signs inflation was easing quicker than expected. Quarterly earnings season is now underway (TRP)

• European shares gained as recession fears waned. The pan-European STOXX Europe 600 Index gained 1.74%. The main indexes for Germany, Italy, France and the UK were all up (TRP)

• Both of the main Japanese indexes were up for the week after sentiment was boosted following Warren Buffett’s comments about investing in Japan (TRP)

• Chinese stocks had a mixed week following as the inflation result dampened investor sentiment (TRP)

Earnings & Data

• Delta Air Lines (DAL.N) on Thursday forecast higher-than-expected profit for the second quarter, citing "record" bookings for summer travel, including strong demand for international trips. Shares of the company rose 4.45% to $35.20 in early trading. (RT)

• Birkin bag maker Hermes sees no U.S. slowdown as sales jump 23% (CNBC)

• Whitehaven Coal shares plummet as production guidance downgraded (AFR)

News Summary

Monday

• Elon Musk's electric car company Tesla says it is expanding in China as it builds a new factory that will be able to produce 10,000 of its "Megapack" energy units each year (BBC)

• China's SenseTime on Monday unveiled an artificial intelligence-powered chatbot called "SenseChat" (RT)

• New Zealand exporters are being put at risk by the country's slow pace to decarbonise (Stuff)

Tuesday

• As of next month, transactions will happen seven days a week in New Zealand (Stuff)

• Australia has reached an agreement with China to resolve their dispute over barley imports (RNZ)

• Russia’s plans to cut oil production are finally starting to look like reality, with the nation’s seaborne shipments collapsing last week (BBG)

Wednesday

• IMF cuts growth outlook as Chalmers warns of ‘deteriorating’ economy (AFR)

• Latitude Financial refuses to pay hackers’ ransom demand (SMH)

• Sam Bankman-Fried ‘joked’ about Alameda Research losing $50m (USD) (NYP)

Thursday

• The NZ Government has scrapped a major part of its unpopular Three Waters reforms, ditching the four mega entities that would have delivered Three Waters (Herald)

• Smoking and vaping will soon be banned in more public settings under a new plan to curb smoking and e-cigarette use in South Australia (9 News)

• E-cigarette manufacturer Juul Labs has agreed to pay $462m (USD) (£372m) to settle claims by six US states after being accused of targeting teenagers (BBC)

Friday

• More than 2 million international visitors came to New Zealand between February 2022 and 2023 – around two-thirds the pre-pandemic figures (1 News)

• An Australian man has been charged with foreign interference after allegedly compiling a number of reports for spies working for another nation (9 News)

• US Embarrassed After 21-Year-Old Arrested in Classified Documents Leak (BBG)

Weekend

• A powerless 66,000-tonne ship drifted in Wellington Harbour (Stuff)

• Budget changes could halt Victoria’s rail link to the airport (9 News)

• The army and RSF are battling over key sites in Sudan (BBC)

• Ford has launched hands-free driving on UK motorways (BBC)

• A Texas dairy farm explosion has killed 18,000 cows (BBC)

Deal Flow

Investments / M&A

Australia & New Zealand

• Private capital’s $36b (AUD) worth of unused capital is looking for a target (AFR)

• Newmont Mining is a step closer to a $29.4b (AUD) acquisition of Newcrest Mining (AFR)

• Norges Bank supports BHP’s $9.6bn OZ Minerals deal (AFR)

• UBS wary that competition risks await Viva Energy’s $1.15bn acquisition of the On The Run Group (Australian)

• Genesis Minerals will now pay $370m (AUD) cash, $170m (AUD) worth of its shares and another $60m (AUD) contingent scrip to buy St Barbara’s Gwalia mine and 1.4 kilo tonnes a year processing plant (AFR)

• ASX-listed Avada Group has entered New Zealand after it acquired Wilson Traffic Management for a fee of ~$15m (NZD) (AFR)

• Australian superannuation fund UniSuper has gained approval from the Crown to acquire more than 10% of fibre network owner Chorus (NBR)

• TPG Capital-backed Greencross is bulking up its pet retailing empire, acquiring a smaller, Melbourne-based rival, Habitat Pet Supplies (AFR)

• PEP is back to take another look at Hoyts after selling it out eight years ago (AFR)

• Suncorp says a merger with BoQ or Bendigo is not ideal despite ACCC's interest. (AFR)

• Japanese multinational Suntory is thought to be weighing up whether to make a bid for Blackmores (Australian)

• Hiro Brands, which tried to list last year, is now looking for a strategic minority investor (AFR)

• Pharmacy retail chain Green Cross Health says share purchases associated with director Craig Brockliss ahead of its special dividend announcement were approved by the board (NBR)

• Analysts at Forsyth Barr say power company Genesis Energy would be better off giving away its 46% stake in the Kupe gas field than continuing to own and invest in the asset (NBR)

• The Maritime Union has rejected the findings of a new report pushing privatisation at the Ports of Auckland, saying mixed ownership would not be good for Auckland (NBR)

• Sydney-based private equity investor, Quadrant Private Equity is “moving towards” a sale of the more than 50 Jetts fitness gyms in New Zealand, the bulk of them in Auckland (NBR)

• Dexus has hung up the for-sale sign at its Sydney CBD office towers at 1 Margaret Street and 44 Market Street in separate sale processes that are expected to test unlisted office asset valuations (AFR)

• Active Utilities is trying to sound out buyers (AFR)

Key Global

• Merck & Co will buy clinical-stage biotechnology company Prometheus Biosciences for ~$10.8B (USD) (BBG)

• A group led by billionaire Josh Harris has reached a deal to buy the NFL’s Washington Commanders for $6B (USD) (BBG)

• Dechra, a British veterinary pharmaceuticals maker, has entered into talks with private equity group EQT for a possible offer in a 4.63B pounds ($5.80B USD) all-cash deal (RT)

• Private equity firm Bridgepoint Group Plc is preparing to sell its majority stake in French insurance broker Kereis, in a deal that could value the company in the region of €2B ($2.21B USD) (RT)

• Private equity firm KKR & Co Inc (KKR.N) has agreed to buy a significant stake in FGS Global in a deal that values the financial communications group at about $1.4B (USD) (RT)

• Vedanta Ltd., billionaire Anil Agarwal’s Indian commodities major, is in talks with US-based Farallon Capital Management to raise at least $1B (USD) (BBG)

• The owner of English Premier League club Leeds United is considering a bid for Inter Milan, one of Italy’s most storied football teams and worth an estimated €1B ($1.1BUSD) (BBG)

VC & Fundraising

• Regal-backed Kilter Rural is attempting to raise $500m (AUD) for a farms fund (AFR)

• Context Labs, a data provider that helps companies track carbon emissions, is looking to raise up to $150m (USD) from investors (RT)

• Philippine tycoon Edgar Sia has announced his hotel venture Hotel 101 Global Pte Ltd. is seeking to raise as much as USD$125m this year to ramp up overseas expansion (BBG)

• Fivecast, an Open-source intelligence (OSINT) software startup, has raised $20m (USD) ($30m AUD) in a Series A led by Ten Eleven (SD)

• Parent support platform Circle In has raised $2m (AUD) in a round led by Sydney VC Alberts Impact Fund (SD)

Equity Raises

Australia & New Zealand

• Raleigh Finlayson-led gold miner Genesis Minerals has put a $450m (USD) placement to investors to help pay for St Barbara (AFR)

• Trilogy Metals, which is 11% owned by South32, is understood to be preparing for an equity raising (AFR)

• Bain Capital has started booking introductory meetings with Aussie investors for Virgin Australia's IPO (Australian)

Key Global

• Japan's Mitsubishi Corp on Monday said that it and other shareholders of the Monsoon wind power project in Laos have raised $692m (USD) in financing for the wind farm (RT)

• Lottomatica, the Italian gambling company backed by Apollo Global Management Inc., is looking to raise €425m ($467m USD) of fresh capital in a Milan initial public offering this year (BBG)

Debt, Restructuring & Bankruptcy

• BBVA, Santander and BofA are wanting to provide financing for AMOL’s $6B (USD) power deal. BBVA could provide up to $2B (BBG)

• Intellihub, the smart meters play backed by Brookfield and Pacific Equity Partners, is set to return from its debt capital markets trip with $500m (AUD) in tow after a surprise leg-up from rival Vector Metering's recent troubles (AFR)

• Morgan Stanley and Bank of America are teeing up investor calls for listed miner Nickel Industries’ debt capital markets trip, aiming to pull off what would be 2023’s first chunky high-yield credit deal on Australian shores. (AFR)

• Sydney Airport and Telstra have both teed up roadshows for the coming week, which investors expect will roll into euro-denominated investment-grade debt deals (AFR)

• MilkRun shuts down with Our Cow looking to acquire its assets (AFR)

• Global creditors, debtor nations and international financial institutions on Wednesday agreed on ways to jumpstart and streamline long-stalled debt restructuring efforts, including through improved data sharing and clearer timetables (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

  • Summer internships - Apply here

• Optiver

  • Graduate role - Apply here

  • Internships - Apply here

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