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Good Morning,
Elon Musk is planning to replace Twitter’s famous bird logo with an ‘X’, the costs flowing from the Auckland floods in early 2023 could reach $4 billion, home building costs are up 9.5% YoY in New Zealand, rent in New Zealand is hitting record highs, and Australia and New Zealand have agreed to try and work towards more seamless travel between the two countries.
Let’s jump in!
Before The Bell
Markets
Central banks to dominate with decisions looming in the US, Europe and Japan (Stuff)
New Zealand achieved a wafer-thin trade surplus in June, mainly due to a drop in the volume and value of imported petrol and diesel (Stuff)
HSBC has reduced its expectations of house price falls through the rest of this year, and says they will be increasing at an annual rate of 5% by the end of 2024. (Stuff)
The crypto market’s once-handsome 2023 lead over the equity market is cracking as bitcoin holds a retreat below $US30,000. (AFR)
The lower inflation in Australia also flowed into the NZ market
The NZ government announced changes to Emissions Trading Scheme, which had a large impact on carbon market spot prices (NBR)
The New Zealand sharemarket fell after the latest consumer confidence survey showed the mood had deteriorated (Stuff)
The US economy shined in its latest report, supporting calls that it can dodge recession despite the most aggressive interest-rate hikes in a generation (AFR)
Earnings & Data
Britain's private sector is growing at its weakest pace in six months in July as orders for businesses stagnate in the face of rising interest rates and still-high inflation (RT)
Global trade software company Trade Windowwas the biggest gainer on the sharemarket, jumping 23% to 37c after announcing a deal that will see UK tech company nChain pay $11.1m for a 19.99% stake. (Stuff)
Shares of L’Occitane have fallen 20% over the past 12 months, giving the company a market value of about HK$30.9 billion ($4 billion) (BBG)
Australian inflation was lower than expected, coming in at 6% YoY in June, down from 7% in March (AFR)
Data showed the decline in China's industrial profits narrowed for the straight month in June, offering some respite to investors concerned about slowing growth in the world's second-largest economy (RTT)
Investment bank Jarden logged $71 million in firm-wide revenue for its first quarter, a sharp turnaround from March, when expenses weighed on the New Zealand-headquartered firm (AFR)
European commercial real estate transactions plunged 58% in the second quarter as rising rates upended the continent’s property markets (BBG)
Fund manager Fisher Funds has seen its revenue and profit fall sharply in the 2023 financial year, with the $77.1 million performance fee it booked in 2022 falling to nothing this year (NBR)
New Zealand has recorded a small trade surplus of $8.8 million in June, with a lift in exports and a fall in imports last month (NBR)
Stats NZ data shows exports nudged by $84m higher to $6.3 billion, when compared with the same month last year, while imports fell $1.1b, also to $6.3b (NBR)
News Summary
Monday
Elon Musk is planning to replace Twitter’s famous bird logo with an ‘X’, marking what would be the latest big change since he bought the social media platform for USD$44 billion last year (Stuff)
A new artificial intelligence-enabled chatbot has launched in New Zealand to help renters and landlords understand tenancy law (Stuff)
Westpac has increased some of its short-term home loan rates - the second time it’s done so in the past two months (Herald)
Tuesday
The Commerce Commission has defended its decision not to name or seek to punish three grocery suppliers that instructed defunct retailer The Honest Grocer not to sell their goods below a certain price. (Stuff)
The costs flowing from the Auckland floods in early 2023 could reach $4 billion, according to ongoing calculations being done by Auckland Council. (Stuff)
Audi New Zealand is hoping for “satisfactory outcomes” as it settles a snag with affected customers and dealerships involving more than 100 Q3 SUVs with incorrect engine and fuel consumption information. (NBR)
Wednesday
Thursday
The blinding rise of generative AI technology has changed everything. It’s opened up a whole new world for New Zealand consumers and businesses (Stuff)
The board of retirement village company Ryman Healthcare fronted shareholders in a marathon annual meeting on Thursday where they faced questions over the level of disclosure, returns, costs and the resumption of dividends (Stuff)
Cancer diagnostic company Pacific Edge says it expects to manage cash reserves, in the event of an adverse Medicare coverage decision, until it regains coverage – a process that could take four years (NBR)
Friday
The majority shareholder of 2 Cheap Cars has struck a deal with his co-founder, who suddenly quit the company amid a mass board exodus a year ago, to buy out his 30% stake in the business (NBR)
A company developing a boutique hotel in Wānaka has been ordered to hand over documents to its 50% owner amid concerns the man’s $10 million investment has been advanced to third parties without his knowledge (NBR)
Amazon has taken its first steps into offering AI to the healthcare sector with a tool that automates note-taking during patient consultations and creates summarised clinical notes (Stuff)
Weekend
Deal Flow
Investments / M&A
Australia & New Zealand
From two years ago when it was about to close, Whakatāne Mill (WML) under new owners is now a thriving export business and three weeks into an upgrade that will see it potentially double its output of folding boxboard, or the material used in tough cardboard cartons and packaging. (NBR)
IFM Investors’ growth private equity team has found a new target it likes in the utilities-focused software business Tally Group. (AFR)
State Super, Australian Retirement Trust and The Infrastructure Fund own some 40 per cent of QAL – the owner of airports at Gold Coast, Townsville, Mount Isa and Longreach – and have Barrenjoey on board for advice. Sources said the two superannuation funds wanted to exit in full, while TIF was keen for a partial sell down (AFR)
Strike Energy has reignited its buyout bid for Talon Energy in what shapes up as the latest round of consolidation of onshore gas assets in the Perth Basin (AFR)
Hospitality company New Zealand Venue Co has taken its portfolio of bars and restaurants to 13, after acquiring two venues in Auckland (NBR)
Key Global
IAG SA, the parent company of British Airways, is buying a stake in a UK firm that’s planning to start production of sustainable aviation fuel by 2025 (BBG)
Safran SA agreed to buy an aerospace business from Raytheon Technologies Corp. in cash for an enterprise value of USD$1.8 billion, adding flight-control and actuation activities alongside 3,700 employees (BBG)
Bain Capital has agreed to buy the 90% stake Gautam Adani’s family holds in an Indian shadow bank, allowing the embattled billionaire to pare down his non-core businesses (BBG)
L’Occitane International SA’s controlling shareholder is considering a move to take the skin-care company private, people with knowledge of the matter said. (BBG)
Skincare company L’Occitane’s owner is said to be mulling a buyout of the $4.2B (USD) firm (BBG)
French company Thales is purchasing US cybersecurity company Impreva in a $3.6B (USD) deal (RT)
TotalEnergies has purchased the remaining shares in clean-power developer Total Eren for $1.66B (USD) (BBG)
PacWest Bancorp is being sold to rival Banc of California for ~ $1.1B (USD) (BBG)
Qatar’s sovereign wealth fund, the QIA is in early talks to acquire a $1B (USD) stake in Reliance Retail (BBG)
Nissan Motor Co. has finalized plans to invest in Renault SA’s electric-vehicle venture Ampere, capping months of negotiations to rebalance the troubled automotive alliance. The Japanese carmaker will invest as much as €600 million ($663 million) in the business (BBG)
Global Auto Holdings said on Thursday it had raised its cash buyout offer for Lookers by 10 pence to 130 pence per share, valuing the British car dealership at 504.2 million pounds ($654.15 million) (RT)
AstraZeneca said on Friday its unit Alexion has agreed to buy U.S. drugmaker Pfizer’s early-stage rare disease gene therapy portfolio for up to $1 billion USD, plus royalties on sales (RT)
PEA EQT, part of Swedish private equity firm EQT said on Friday it has completed the merger of its Hong Kong-based business services firms Vistra and Tricor, valuing the combined entity at $6.5 billion, including debt (RT)
VC & Fundraising
Oneview Healthcare, 30.7 per cent owned by Caledonia fund manager Will Vicars, had two brokers drumming up interest in an AUD$22 million equity raising (AFR)
Dalian Wanda Group Co. is selling a stake in one of its entertainment units for 2.26 billion yuan (USD$314 million), raising odds the Chinese conglomerate will avert a default on a maturing dollar bond (BBG)
Investor pressure at Talon Energy is reaching fever pitch. It is understood shareholders representing nearly 30 per cent of Talon Energy’s register have sat down with the ASX-listed oil and gas explorer’s chief executive, Colby Hauser, to force the board to engage with Strike Energy’s bid. (AFR)
Future Super, an Australian ESG superannuation and investments start-up, is aiming to raise $10m (AUD) at a $225m (AUD) fully diluted pre-money valuation (AFR)
Queensland-headquartered telco Pivotel, which specialises in servicing customers outside the catchment of regular mobile phone coverage, has drafted boutique corporate advisor TMT Partners to oversee a capital partner search (AFR)
NB Capital Solutions, a unit of Neuberger Berman that finances companies owned by private equity firms, raised about $2.5 billion for a fund, around $1 billion more than its initial target (BBG)
Brazilian miner Vale said on Thursday it reached two separate agreements to sell a 13% stake in its base metals business for $3.4 billion USD, aiming to boost its copper and nickel output (RT)
Equity Raises
Australia & New Zealand
Waste management company Smart Environmental is on the hunt for fresh capital, hiring investment bank UBS to assess its future options. (NBR)
Indoor strawberry company 26 Seasons has re-launched its capital raise campaign on Snowball Effect ahead of offering shares to retail investors later this month. (NBR)
Canadian lithium explorer Critical Resources and carbon capture technologies business Dotz Nano were drumming up interest in equity raisings on Tuesday morning. (AFR)
High-vis demand has Quadrant’s Jaybro building for an IPO (AFR)
Key Global
Busy For You, a Chinese snack shop chain, is considering an initial public offering that could raise USD$100 million to USD$200 million (BBG)
Malaysian renewable energy company reNIKOLA Holdings is seeking to raise $438.4m (USD) over the next 3 years (RT)
Panoramic Resources, a West Australian nickel, copper and cobalt explorer, is trying to raise $40m (AUD) at a 45.7% discount. Its largest shareholder IGO won’t be investing (AFR)
Guangdong Ubridge New Material Technology Co., a refiner of minerals including titanium and zirconium, is considering a Hong Kong initial public offering that could raise about $300 million, according to people familiar with the matter (BBG)
Surf Air Mobility Inc. shares were issued a reference price of $20 by the New York Stock Exchange to guide investors when the stock starts trading Thursday in the first significant direct listing in almost two years (BBG)
How Jack Ma’s Ant Group Is Inching Toward IPO Reboot (BBG)
Debt, Restructuring & Bankruptcy
Job Board
New Zealand
Australia
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