No-confidence vote, bailout & lawsuits

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Admin
March 22, 2023

Good Morning,

Unions in New Zealand are calling for a 5% levy on excess bank profits, JP Morgan Chase and Deutsche Bank face a lawsuit over claims they enabled Jeffrey Epstein's sex trafficking, the French government has survived a no-confidence vote, Sri Lanka has received a $3B (USD) IMF bailout & central banks have raised concerns over the AT1 Swiss bondholder wipeout.

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Let's jump in.

Before The Bell

Markets

  • The NZX was dragged down by the energy (-0.68%) & property sector (-0.77%) to finish down 0.29%

  • The ASX finished up 0.82% after an exceptional half-year result by New Hope boosted coal stocks and improved investor sentiment about the health of the global financial system

  • The US and UK indexes rose as investor sentiment improved

Earnings and Data

  • Australian credit card spending hit a record $33.5B (AUD) in January (9 News)

  • Goodman advised that its FY23 annual results are expected to include a $238m (NZD) or 4.7% reduction in the fair value of its property assets (NZX)

  • New Hope doubled its half-year profit to a record $668.6m (AUD) and declared dividends of 40c per share (AFR)

News Summary

  • T4 Group have said plans for a state-of-the-art Tier 4 data centre in Southland, New Zealand, are on track (Stuff)

  • Unions in New Zealand are calling for a 5% levy on excess bank profits (Stuff)

  • Latitude Financial will cover the costs of replacing customers' identification documents after more than 330,000 customers' privacy was breached in a cyberattack on March 16th (Stuff)

  • Scott Robertson has been named the new All Blacks coach from 2024 (Stuff)

  • Laybuy has announced it will layoff 10% of its staff (NBR)

  • Thirty roles have been cut at Kiwi Wealth, and further cuts are likely (NBR)

  • Otis will shift its production to New Zealand at a new manufacturing plant in Auckland (NBR)

  • Westpac will shut five branches across Sydney, Melbourne and Brisbane (9 News)

  • TK Maxx will open a shop in Perth in spring (9 News)

  • JP Morgan Chase and Deutsche Bank face a lawsuit over claims they enabled Jeffrey Epstein's sex trafficking (BBC)

  • The French government has survived a no-confidence vote (BBC)

  • Xi Jinping invited Vladimir Putin to China during his trip to Russia (BBC)

  • The Chinese fraud watchdog has accused chip tycoon Zhao Weigh of corruption (BBC)

  • Sri Lanka has received a $3B (USD) IMF bailout (BBC)

  • Amazon will cut another 9,000 jobs (BBC)

  • Central banks have raised concerns over the AT1 Swiss bondholder wipeout (AFR)

  • Swiss investors and MPs are considering challengers to the UBS - Credit Sussie merger (AFR)

Deal Flow

Investments / M&A

  • Jamie Dimon, the CEO of JPMorgan Chase & Co, has formulated a new plan to aid First Republic Bank. The new plan would see some or all of the $30B (USD) in deposits that a group of US banks injected be converted into a capital infusion for the struggling California lender (BBG)

  • Thermo Fisher Scientific, a US scientific instrument maker, and South Korea's Celltrion are among the companies competing for the acquisition of the biopharma solutions business of Baxter International. The unit could be worth more than $4B (USD) (RT)

  • Ammonia producer CF Industries agreed to buy the US ammonia manufacturing facility of Australia's Incitec Pivot in a $2.5B (AUD) deal (AFR)

  • John Lau, a Hong Kong tycoon, is weighing his options for his logistics assets. He has held preliminary talks with buyers the assets may fetch a valuation of more than $1B (USD). They include holding company Cargo Services Far East (BBG)

  • Andrew Forrest's Wyloo has offered $1.40 (AUD) a share for nickel play Mincor Resources. The bid values the company at $760m (AUD) (AFR)

  • A.P. Moller-Maersk has found a buyer for its energy-division asset, allowing it to become a pure transport operator. It will sell Maersk Supply Service, a company that provides services to the offshore energy sector, for $685m (USD) to A.P. Moller Holdings, the investment firm owned by the Maersk family (BBG)

  • Goldman Sachs is set to sell its stake in Australia's biggest premium marinas, owner d'Albora, to MA Financial. The transaction could value d'Albora at more than $200m (AUD) (AFR)

  • Pearson, a British education group, will sell Pearson Online Learning Services (POLS) to PE group Regent. Regent will pay 27.5% of POLS adjusted earnings each year for six years plus a proportion of the proceeds when it sells the unit (BBG)

  • First Citizens is still hoping to strike a deal for all of Silicon Valley Bank (BBG)

  • Pernod Ricard, the company behind Chivas Regal and Absolut vodka, is acquiring a majorty stake in American whiskey maker Skrewball (BBG)

  • Healius is searching for a bulge-bracket investment bank to help with the defence of the bid it received from Australian Clinical Labs (AFR)

  • Bidders for under-water drill rigs maker Schramm Australia have been given a few more weeks to firm up their final bids (AFR)

  • First Sentier Investors has purchased a majority stake in European credit manager Albacore (AFR)

  • Eroad has hired Goldman Sachs to advise on its strategic review (NBR)

VC & Fundraising

  • Outset Ventures, a deep tech VC fund, is trying to raise between $30m (NZD) to $50m (NZD) for its second fund (NBR)

  • Alex's Bank is seeking $20m (AUD) at a $130m (AUD) pre-money valuation (AFR)

  • Melbourne-based medical technology start-up Mindset Health has raised a $17.8m (AUD) series A round led by King River Capital at a $77m (AUD) valuation (AFR)

  • Greengrower, a Hamilton-based indoor vertical farm, has received $3.5m (NZD) in public funding for research from the Ministry of Primary Industries (Stuff)

Equity Raises

  • Cowell Health, a Chinese drugstore chain backed by Hillhouse Capital, has selected Bank of America, Goldman Sachs and Haitong International Securities for its Hong Kong IPO that could raise $500m + (USD) (BBG)

  • DTGO, a Thai conglomerate, is considering listing its UK hospitality assets worth ~ £500m via a REIT IPO in Singapore as soon as next year. The IPO could raise ~$244m (USD) (BBG)

  • Australian chemicals business Redox has asked UBS to reboot investor meetings for an IPO (AFR)

Debt & Restructuring 

  • Sri Lanka's bondholders are considering a proposal to swap defaulted bonds with new securities that would have cash flow linked to the nation's future growth (BBG)

Daily Picks

  • Want to find out more about biofuel in New Zealand, check this article out

  • Dealmakers believe that the Silicon Valley Bank's collapse and the market chaos that followed could have been mitigated. Check this article out to find out how

  • Check out the world's top 10 most expensive property markets here

Job Board

New Zealand

  • BCG graduate roles - Apply here

  • BDO graduate and intern roles - Apply here

  • Bell Gully summer intern roles - Apply here

  • BNZ graduate roles - Apply here

  • Buddle Findlay summer clerkships - Apply here

  • Chapman Tripp winter and summer clerkships and clerk roles - Apply here

  • Deloitte intern roles - Apply here

  • Deloitte graduate roles - Apply here

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

  • Duncan Cotterill summer clerkships and grad roles - Apply here

  • EY graduate and intern roles - Apply here

  • Grant Thornton graduate roles - Apply here

  • KPMG graduate and intern roles - Apply here

  • PWC graduate and intern roles - Apply here

  • Russel McVeagh summer clerkships - Apply here

  • Russel McVeagh clerks - 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

    • Women in banking scholarship - Apply here

    • Winter internships - Apply here

    • Graduate role - Apply here

    • Summer internships - Apply here

  • Macquarie graduate roles - Apply here

  • Optiver

    • Graduate role - Apply here

    • Internships - Apply here

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