OpenAI's new CEO: Mura Murati In, Sam Altman Out.

November 20, 2023

Good Morning,

ChatGPT’s creator, OpenAI has a new CEO in town. Despite the current cost-of-living crisis, New Zealanders are still projected to spend 10% more on Black Friday this year than the last. Mid-tier firm revenues surge 17%, outpacing the Big 4. SpaceX prepares their second test launch of the worlds largest rocket.

Let’s jump in!

Before The Bell

Markets

  • S&P 500 breaks 4,500 barrier, reaching previous September high; notable broad market gains with the equally weighted index outperforming by 1% (TRP)

  • In October, the UK experienced a lower-than-anticipated annual consumer price inflation, slowing to 4.6% from September's 6.7%. This led financial markets to heighten their expectations for interest rate cuts in the coming year (TRP)

  • Japanese stocks saw a notable upswing during the week, with the Nikkei 225 Index securing a 3.1% gain and the broader TOPIX Index experiencing a 2.3% uptick (TRP)

  • The JPY continues to hover near the 33-year low level against the USD (TRP)

Earnings & Data

  • Infratil books $1b One NZ gain, boosts full year forecast (NBR)

  • Donald Trump’s social-media business generated just $2.3 million in sales in the first half of the year on its way to a loss, underscoring the nascent company’s struggles as it pushes to close a deal that would make it publicly traded (BBG)

  • ANZ has reported a slight drop in its annual net profit and expects tough economic conditions to linger as households and businesses roll on to higher interest rates. The country’s largest bank reported that statutory net profit in the year ended September 30 fell 7% to $2.1 billion, compared with $2.3b the previous year (NBR)

  • NZX-listed fishing company Sanford’s full-year results published today showed a revenue increase of 4% to $553 million, although after-tax profit was down on the back of an unusually high take last year (NBR)

  • Oversea-Chinese Banking Corp.’s third-quarter profit beat estimates thanks to higher income from lending and wealth. Net income rose 21% to US$1.33 billion from a year earlier in the three months ended Sept. 30, Southeast Asia’s second-largest lender said Friday (BBG)

  • China’s largest chipmaker, SMIC on posted a 80% drop in third-quarter profit as global demand weakness hit foundries hard (CNBC)

News Summary

Monday

  • ANZ profit up 10% despite tough economic times. (Stuff)

  • PwC spin-off Scyne Advisory appoints veteran chairman John Mullen.(AFR)

  • Iceland volcano: Emergency declared over volcano Fagradalsfjall (try to pronounce that one) eruption concerns. (BBC)

Tuesday

  • The leaders of National and ACT have had to fly back to Auckland, returning to meet Winston Peters after plans for the three leaders to meet in Wellington fell over. (Stuff)

  • Mid-tier firm revenue surges 17%, outpacing big four (AFR)

  • Microsoft (MSFT.O) and Alphabet's (GOOGL.O) Google will not challenge an EU law that would require them to make it easier for people to move between competing services – such as social media platforms and internet browsers, the companies said. (RT)

Wednesday

  • Canterbury batter Henry Nicholls has been cleared of ball tampering following a New Zealand Cricket disciplinary hearing. (Herald)

  • Queensland is in the midst of a COVID-19 wave, but cases are becoming less severe and a new mask mandate would be "disproportionate", the state's chief health officer says. (9 News)

  • The next generation of the Toyota Camry, the best-selling sedan in the U.S. market, will come with only a gas-electric hybrid powertrain, the boldest move yet by the Japanese automaker to push hybrid technology into the heart of the U.S. market. (RT)

Thursday

  • Luxon going through coalition deal 'line by line', but 'more work to do' (Stuff)

  • Australia can be clean energy ‘superpower’: PM tells APEC (AFR)

  • Biden, Xi's 'blunt' talks yield deals on military, fentanyl (RT)

Friday

  • Despite the cost-of-living crisis, New Zealanders are predicted to spend 10% more on Black Friday this year than last. (RNZ)

  • EY fired an Australian partner accused of promoting a tax minimisation scheme and receiving more than $700,000 in unauthorised payments from clients. (Guardian)

  • SpaceX prepares for second test flight of world’s largest rocket. (Guardian)

Weekend

  • Talks to form next government continue in Auckland (RNZ)

  • Australia’s inflation rate highest among major advanced economies (AFR)

  • Sam Altman Is Out at OpenAI After Board Skirmish (WSJ)

Deal Flow

Investments / M&A

Australia & New Zealand

  • Australia’s Ramsay Health Care Ltd. and Malaysian conglomerate Sime Darby Bhd. have agreed to sell their hospital unit to Columbia Asia Healthcare Sdn. for 5.7 billion ringgit ($1.2 billion) (BBG)

  • Gresham Partners’ growing property investment business, with some $3.5 billion in funds under management, is signalling big plans for Queensland, hiring its first staffer in Brisbane. (AFR)

  • Street Talk understands Canadian payments processor Nuvei is set to buy the struggling payments processor – once one of Australia’s hottest start-ups, valued at $500 million – for $47 million. (AFR)

  • AustralianSuper had a good night. Street Talk understands the superannuation fund giant – Origin Energy’s largest shareholder – picked up stock at $8.65 a piece. Origin closed Monday’s trading day at $8.78. (AFR)

  • AusSuper rejects eleventh-hour offer to join Origin Energy bid (AFR)

  • KKR teams up with Skip Capital for Queensland Airports Limited (AFR)

  • Despite a backdrop of ongoing inflation pressures, tighter monetary conditions, and global economic uncertainty, Napier Port’s management is brimming with optimism about the year ahead. (NBR)

  • The executive director of NZX-listed Geo has blamed a global downturn in software as a service (SaaS) business valuations for the company’s stock market slide, but also acknowledged it has slumped even lower than its peers. (NBR)

  • Queensland Airports auction preps for takeoff; first bids by March. (AFR)

  • Southern Cross Austereo is set to say thanks but no thanks to Antony Catalano for his proposal to acquire the radio and television broadcaster. (AFR)

  • Insurance broker roll-up Steadfast Group, secured backing for its latest M&A venture and a concurrent A$280 million institutional placement. JPMorgan and UBS concluded the variable price bookbuild at $5.14 per share overnight, surpassing the $5.06 floor price by 8 cents. (AFR)

Key Global

  • Michael Hintze sells $20b firm to Canadian giant (AFR)

  • Medibank Private is the $9.6 billion gorilla giving London-listed buyout giant Intermediate Capital Group and Switzerland’s Partners Group a major headache in their quest to acquire Cura Day Hospitals. (AFR)

  • American technical professional services firm Jacobs Solutions Inc is in advanced talks to merge its government consulting arm at a valuation of more than US$4 billion with private equity-owned Amentum Services Inc. (RT)

  • Britain's Octopus Energy said its renewables investing arm had launched a dedicated fund with Japan's Tokyo Gas to invest 3 billion pounds (US$3.7 billion) in offshore wind projects by 2030. (RT)

  • The Aston Martin Formula One team agreed to an investment by U.S. private equity firm Arctos Partners in exchange for a minority shareholding. The stake sale, terms of which were not disclosed, values the racing group at 1 billion pounds (US$1.24 billion). (RT)

SPAC

  • Low-Cost Airline Flybondi Eyes Brazil Expansion After SPAC Deal (BBG)

VC & Fundraising

  • Private windfarm developer Ventus Energy is planning a $24 million capital raise for a 32MW wind farm project south of Kawhia Harbour, 18 years after its initial application for resource consent. (NBR)

  • Trust-owned infrastructure company Eastland Group has sold a half share of its electricity generation business to Japanese construction conglomerate Obayashi Corporation. (NBR)

  • Local buyout firms Anchorage Capital Partners and Allegro Funds were recognised for their dealmaking efforts at the Asian Private Equity & Venture Capital Awards 2023 awards ceremony in Hong Kong on Monday night. (AFR)

  • Karoon Energy is raising around $US300 million ($460 million) via Macquarie Capital, to fund the purchase of assets in the Gulf of Mexico from the privately held LLOG Exploration Company. (AFR)

  • VC Firm Co-Owned by California Pensions Debuts With $1 Billion (BBG)

  • TradeWindow raises $500,000 from founders and new investor (NBR)

  • Ballistic Ventures, a venture capital firm dedicated to funding and incubating cybersecurity startups, is looking to raise as much as US$300 million for a new fund. (TC)

Equity Raises

Australia & New Zealand

  • Rinehart & Mineral Resources tip into Delta Lithium $70m AUD raise (AFR)

  • Ainsworth Game Technology considers life outside the ASX (AFR)

  • Craft brewer Mountain Culture Beer Co is looking to raise capital for the first time (AFR)

  • Hospital operator Wyvern Health has called in Wyuna Partners to round up investors for a $25 million equity raise, Street Talk can reveal. (AFR)

  • Peninsula Energy in $50m raising; Shaws, Canaccord on ticket (AFR)

  • Steadfast poised to launch $280m equity raising; two brokers on ticket (AFR)

  • Terms out for Karoon Energy, Steadfast Group’s equity raises (AFR)

  • Amaero International, a small cap with advanced manufacturing ambitions, rounded up investors for an A$8 million placement via Alpine Capital. (AFR)

  • Sydney small caps investment house Eley Griffiths Group has launched its mid-cap strategy, with A$25 million in seed capital. (AFR)

Key Global

  • PAI Raises €7.1 Billion for New Buyout Fund, Surpassing Target (BBG)

  • American private investment firm, Bain Capital LP raised US$7.1 billion for its new buyout fund dedicated to Asia-Pacific. (BBG)

  • Everstone Capital Plans to Raise $1 Billion for Its Largest Asia PE Fund (BBG)

  • Renault will try on Wednesday to fire up doubtful investors ahead of a planned market listing of its electric vehicle (EV) unit Ampere, a key plank of CEO Luca de Meo's revamp of the French automaker. (RT)

  • Hebei Gellec New Energy Science & Technology Co. is considering a Hong Kong initial public offering as early as next year after shelving previous plans for a listing in mainland China, according to people familiar with the matter. (BBG)

Debt, Restructuring & Bankruptcy

  • Morrison & Co-backed data centre owner CDC Data Centres in new debt deal (AFR)

  • Is it last drinks for Jon Adgemis’ Public Hospitality Group, the pub and hotel roll-up that has been attempting to refinance $450 million in debt for months? The former KPMG dealmaker is considering splitting the portfolio, which includes Sydney’s The Strand Hotel and others, sources said. (AFR)

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