China Grows Influence in Africa 🌍🇨🇳

Good Morning,

The NZ government has been secretly building a $300m (NZD) data centre in Auckland, Labor and Chris Minns will have a minority government in the lower house of parliament in NSW, the UK has signed a deal to join a trade pact with 11 Asia and Pacific nations, China’s loans to Africa are worrying the World Bank president & Max Verstappen has won a chaotic Australian Grand Prix.

Let’s jump in!

Before The Bell

Markets

• The NZX finished off Q1 with a strong week to finish up 3.6% YTD

• The ASX had five straight days in the green as it finished up 3.2% for the week. This got Q1 out of the red and into the green

• US stocks rose this week to finish Q1 strongly. The NASDAQ is up 16.77% for the quarter, and the S&P500 is up 7.03%

• European shares rallied as fears of financial instability reduced. The pan-European STOXX Europe 600 index gained 4.03%. Indexes in France, Germany, Italy and Switzerland were all up over 4.00%, whilst the FTSE was up just over 3.00% (TRP)

• Japan’s stock market rose over the week, with the Nikkei 225 index up 2.40% and the TOPIX Index up 2.46% (TRP)

• China’s market followed the trend, with indexes across China and Hong Kong finishing up for the week (TRP)

Earnings & Data

• Australian CPI came in at 6.8% YoY which was lower than the expected 7.2% and down from 7.4% (AFR)

• Annual reports have been released by

  • Cannasouth

  • Embark Education Group

  • NZK which had a net profit for the year of $1.9m (NZD)

  • Scales

• Britain's economy grew in the fourth quarter of last year (RT)

• China's manufacturing activity expanded at a slower pace in March (RT)

• Freightways announced one-off costs due to flooding and M&A activity and a potential listing on the ASX (NZX)

• After a sharp gain in January, US pending home sales rose just 0.8% in February, according to the National Association of Realtors. The average rate on the popular 30-year fixed mortgage started February right around 6% and ended the month just over 7% (CNBC)

• Satellite imagery and data-analysis company Planet brought in $53m (USD) in revenue during its fiscal fourth quarter, a 43% increase from $37.1 (USD) a year prior (CNBC)

• Primark's 26,000 retail assistants in Britain are to get an inflation-beating average pay rise of 12% from April 1, the fashion retailer said on Thursday (RT)

• Private Land and Property announced their Marlborough-based vineyards had increased in value by $6.5m (NZD) (NZX)

•  Silver Fern Farms, has lifted its net profit after tax by 82 per cent (Herald)

• New Zealand-based milk processor Synlait was forced to borrow a further $175 million in the half year to January as difficulties with a new software system from SAP delayed sales and slashed cashflows (AFR)

• South African thermal coal exporter Thungela Resources on Monday reported a 97% jump in full-year profit, boosted by record-high prices of the fossil fuel (RT)

News Summary

Monday

• Some parts of Twitter Inc's source code have been leaked (RT)

• Candida auris, an emerging fungus that poses a "serious global health threat", has arrived in Aotearoa. However, officials say there's "no elevated risk to the public" (Stuff)

• Australia's lower house on Monday passed an emission reduction plan with curbs on new gas and coal investments and a cap on total greenhouse gas emissions from the country's biggest polluters (AFR)

Tuesday

• Stuart Nash has been sacked as a minister (Stuff)

• Santos’ $5.8B (AUD) Barossa gas project in the Timor Sea has emerged as the biggest target of the escalated restrictions on gas projects (AFR)

• North Korea has revealed small nuclear warheads, which it says can be fitted onto short-range missiles. (BBC)

Wednesday

• Sky TV will lay off about 170 staff (Stuff)

• Apartment giant Meriton has been targeted in a cyberattack (9 News)

• Sam Bankman-Fried has been accused of bribing Chinese officials (BBC)

Thursday

• The first case of rabies detected in New Zealand (Stuff)

• Russia’s top security agency has said a reporter for the Wall Street Journal has been arrested on espionage charges (Guardian)

• Italy’s government has endorsed legislation that would outlaw laboratory-grown food and allow stiff fines for those who make or sell it (Stuff)

Friday

• The Chief Ombudsman in NZ announced he has reopened an investigation into an Official Information Act (OIA) complaint against former government minister Stuart Nash (1 News)

• New South Wales motorists have been warned that tolls will increase this week due to an agreement made by the former state government (9 News)

• Donald Trump has been indicted by a Manhattan grand jury after a probe into hush money paid to porn star Stormy Daniels, becoming the first former U.S. president to face criminal charges even as he makes another run for the White House (RT)

Weekend

• The NZ government has been secretly building a $300m (NZD) data centre in Auckland (Stuff)

• ACC is launching a free app to help prevent fall-related injuries (Stuff)

• Labor and Chris Minns will have a minority government in the lower house of parliament in NSW (9 News)

• The Labor party in Australia has won the byelection for Aston (AFR)

• The UK has signed a deal to join a trade pact with 11 Asia and Pacific nations (BBC)

• The election in Finland is a three-way race (BBC)

• China’s loans to Africa are worrying the World Bank president (BBC)

• Google faces a new multi-billion dollar advertising lawsuit (BBC)

• Max Verstappen has won a chaotic Australian Grand Prix (9 News)

Deal Flow

Investments / M&A

Australia & New Zealand

• Australia’s government wants to create a market to preserve the habitats of koalas, emus and other native fauna — an effort that could be worth $137B (AUD) annually (BBG)

• Brookfield Asset Management Inc. will prioritize wind power projects over solar farms as it begins a $20B (AUD) renewables investment blitz in Australia following the takeover of utility Origin Energy (BBG)

• Brookfield Asset Management and GIC have signed the binding deed for their $18.7B (AUD) deal to take over Australian utility Origin Energy Ltd (BBG)

• Liontown Resources have rejected a $5.5B (AUD) bid from lithium royalty Albemarle (AFR)

  • Bankers were searching globally for counterbidders for Liontown Resources following Albemarle's bid (AFR)

• HMC Capital has acquired hospital properties owned by US investor Medical Property Trust for $1.2B (AUD) (AFR)

• Tyro Payments and Potentia are gearing up for a $1B do-or-die negotiation (AFR)

• JPMorgan's equity desk crossed a $421m stake in CSL. It was 1.5m shares. It was most likely a large offshore institution selling down, and it was bought by a handful of fund managers (AFR)

• Cyara, the Melbourne-born tech company that holds the record for the largest venture capital raise completed by an Australian business, has acquired an Irish communications testing company, Spearline, in a deal understood to be worth upwards of $100m (USD) (AFR)

• Struggling buy now, pay later player Zip Co expects to receive a cash inflow close to $20m (AUD) in the second half of the financial year 2023 as a result of plans to close its Middle East operations and divest its European business, Twisto, alongside its Payflex business in South Africa (AFR)

• NZX-listed trade software company TradeWindow will sell a 19.99% stake to a global blockchain company for $11.1m (NZD) after last month’s $20m (NZD) capital raise fell well short (NBR)

• Promisia Healthcare has acquired three properties on Aldwins Road for ~$2m (NZD) to allow for the growth of their Aldwins House facility (NZX)

• United Malt has received a $5 a-share bid from Soufflet Malteries (AFR)

• Slater & Gordan shareholders look like they will accept a 55c (AUD) share deal from Allegro Funds (AFR)

• The Australian Competition and Consumer Commission is investigating Transurban Group's plan to buy a 55% stake in Horizon Roads (AFR)

• Ethical Partners, a boutique fund manager, has lifted its stake in Australian Clinical Labs to 8.7% from 7.7% and given its blessing for the takeover of Healius (AFR)

• Khoemacau Copper Mining’s private equity owners Global Natural Resources Investments (Barclays Bank’s natural resources private equity business) and Resources Capital Fund VIII LP have hired bankers to run a sales process (AFR)

• TAB announces proposed tie-up with UK-listed Entain (NBR)

• Greymouth Gas Turangi has today been granted an offshore petroleum exploration permit following the High Court ordering a review (NBR)

• Healius has asked the Takeovers Panel to curb hostile suitor Australian Clinical Labs. Some of the measures it asked for is for ACL to correct its "misleading" and "inadequate" hostile takeover bid and restrain ACL from contacting Healius's shareholders (AFR)

• Ontario Teachers Pension Fund and its Australian agriculture subsidiary AustOn Corp have bought a majority stake in Australia's biggest grower of potatoes, Mitolo Family Farms (AFR)

• Jarden has been appointed to sell Metroglass's Australian Glass Group (NZX)

• The Clean Energy Finance Corporation is back for a second helping at Artesian’s green and sustainable bond fund, led locally by portfolio manager David Gallagher (AFR)

Key Global

• Alibaba Group Holding Ltd. plans to split its $220B (USD) empire into six units that will individually raise funds and explore initial public offerings, the biggest overhaul of China’s online commerce leader since its inception more than two decades ago (BBG)

• Britain said it would investigate Broadcom's acquisition of VMware in depth after the U.S. chipmaker offered no immediate undertakings in response to its concerns about the impact of the $61B (USD) deal on the server market (RT)

• Canada is set to approve on Friday a transfer of wireless licenses that will finally settle Rogers Communications Inc's C$20B ($15B USD) bid for Shaw Communications Inc (RT)

• Axiata Group Bhd., Malaysia’s biggest wireless company by revenue, is exploring a strategic review of its businesses with total assets of ~$18.4B (USD) (BBG)

• ICU Medical Inc has teamed up with a private equity firm to challenge GE Healthcare Technologies Inc in its pursuit of two medical technology businesses that Medtronic Plc is seeking to sell for between $8B and $9B (USD) (RT)

• A group led by Josh Harris has placed a bid for the NFL's Washington Commanders. The seller Dan Snyder is looking for bids around the $6B (USD) mark (BBG)

• Suntory Beverage and Food are targeting $5B (USD) worth of M&A activity in the next few years (BBG)

• AMC's stock price rose as Amazon is looking at a potential takeover of the firm. It currently has a market value of ~$4B (USD) (BBG)

• Saudi Aramco is buying a 10% stake in Chinese refinery giant Rongsheng Petrochemical for $3.6B (USD) (BBG)

• Sartorius Stedim Biotech, an international pharmaceutical company headquartered in Germany, will acquire French biotech company Polypas for $2.6B (USD) (BBG)

• BP and Abu Dhabi National Oil plan to take private Israel's NewMed Energy via a joint venture. The deal is expected to be worth ~$2B (USD) (BBG)

• Kuwait Investment Authority sold a quarter of its stake in Mercedes for ~$1.4B (USD) (BBG)

• Cardinal Health is considering a sale of its nuclear medicine business. The business could sell for more than $1B (USD) (BBG)

• First Citizens BancShares Inc will acquire Silicon Valley Bank's deposits and loans as well as certain other assets from the Federal Deposit Insurance Corporation (RT)

SPAC

• Ares is considering raising $400m (USD) for a new SPAC (BBG)

VC & Fundraising

• Icehouse Ventures have launched its second growth fund. They are trying to raise $100m (NZD) (NBR)

• Kiwi agritech company Halter has raised an $85m (NZD) Series C round. The round was led by Bessemer Venture Capital alongside existing investors DCVC, Blackbird, Peter Beck and Icehouse (NBR)

• Melbourne-based Marketplacer is attempting to raise $20m at an undiluted valuation of $149m (AUD) (AFR)

• Sydney-based venture capital investor OneVentures is bankrolling an $18m (AUD) funding round for heart device company BiVACOR (AFR)

• Cauldron, an Australian start-up that promises to let scientists create the raw ingredients needed to make new forms of food and materials, has raised $10.5m (AUD). Investors included Horizon Ventures & Main Sequence (AFR)

• Brisbane payments start-up Paypa Plane has raised over $10m (AUD) via a Series A round. Investors included Mastercard, Cuscal, Sprint Ventures & the Queensland Business Investment Fund (AFR)

• Qantas, Airbus and the Queensland government will contribute to a $6m (AUD) feasibility study to explore the creation of a $400m (AUD) ethanol-based sustainable aviation fuel factory in North Queensland (AFR)

• NZ pet food company Huntaway is seeking $1m (NZD) for international growth (NBR)

Equity Raises

Australia & New Zealand

• HMC Capital is raising $120m (AUD) and HealthCo is raising $325m (AUD) to fund their $1.2B acquisition (AFR)

• Burgundy Diamond Mines have kicked off its $231m capital raise to fund its acquisition of Canada's Ekati diamond mine (AFR)

• Thai gold miner Kingsgate Consolidated is chasing $46m (AUD) via Barrenjoey (AFR)

• MoneyMe has got its $37m (AUD) underwritten deal. The raise will be at 8c a share which is a 23.8% discount to last close (AFR)

• Rare earth player Meteoric Resources want to raise $20m (AUD) with the potential to take another $10m (AUD) in oversubscription (AFR)

• Chemicals group Redox have started IPO meetings in Melbourne (AFR)

• Nasdaq gaming company Light and Wonder was chatting up Australian funds as they consider listing on the ASX (AFR)

• Rugby Australia plans to kick off the search for new investors as soon as in the next two weeks as it gets ready for key international games, including the 2029 World Cup, and to fund the growth of women’s rugby (BBG)

Key Global

• Credit Suisse Group AG’s role in a €3B ($3.3B (USD) initial public offering of private equity-backed skincare group Galderma is under review following the bank’s rescue takeover (BBG)

• Saudi Arabia's First Mill is planning an IPO on the local exchange that could value the company at as much as $1B (USD) (BBG)

• Singapore's state-owned investment firm Temask Holdings is considering an IPO for Advanced MedTech Holdings after sale talks stalled. The IPO could raise between $200m and $300m (USD) (BBG)

• Bed Bath & Beyond warns of bankruptcy risk in $300m (USD) offering (BBG)

Debt, Restructuring & Bankruptcy

• ANZ Banking Group’s first big debt markets trip in a post-Silicon Valley World has turned out to be a thumping hit, with investor bidding for more than $6B (AUD) worth of bonds to let the bank print $4.25B (AUD) at slightly tighter pricing than it had expected (AFR)

• ArcelorMittal SA on Friday said its Indian steelmaking joint venture with Asian peer Nippon Steel Corp has entered into a $5B USD loan deal with a consortium of Japanese lenders (RT)

• PE firm QIC has raised $4.5B (AUD) in debt from seven different banks for their acquisition of Origin (AFR)

• Northern Star gets $US600m at 6.1% from US debt capital markets (AFR)

• Virgin Orbit is ceasing operations “for the foreseeable future” after failing to secure a funding lifeline, CEO Dan Hart told employees during an all-hands meeting Thursday (CNBC)

Job Board

New Zealand

• ANZ graduate roles - Apply here

• BDO graduate and intern roles - Apply here

• DLA Piper insight programme, summer clerkships and clerk roles - Apply here

• EY graduate and intern roles - Apply here

• KPMG graduate and intern roles - Apply here

• PWC graduate and intern roles - 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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