Government U-Turn

September 01, 2022

Good Morning,

Government backtracks on proposed Kiwisaver tax, Goldman warns that UK inflation could hit 22%, TVNZ profits fall, former Soviet leader Gorbachev dies age 91, NASA is going to launch a rocket to the moon, NZ business confidence is up, floods continue to hammer Pakistan, Ports of Auckland increases council payout, Ukraine battles to retake the city of Kherson and Colin de Grandhomme retires from international cricket.

Let's jump in.

Before The Bell

Markets

  • The markets were a sea of red, with investors still cautious.

  • The US Markets were down for the third day straight as J Pow's comments still haunt investors, and a 75 basis point hike in September is more likely. (Stuff)

Earnings

  • DGL reported an 88% increase in revenue and a 133% increase in underlying EBITDA. (NBR).

  • Harmony reduced its statutory net loss to $20.18m (NZD) from $29.3m (NZD). It also increased revenue by 15%. (Herald)

  • Harvey Norman reported a net profit of $812m (AUD), down from $841m (AUD) last year. They will pay a 17.5¢ final dividend. (AFR)

  • TVNZ's profits were down $51.3m (NZD) to $7.9m (NZD), but CEO says this represents an investment in content. (1 News)

News Summary

  • Government backtracks on proposed 'Kiwisaver tax'. (NBR)

  • TVNZ CEO says proposed merger with RNZ 'poorly constructed'. (NBR)

  • Ports of Auckland lifts council payout by 281%. (NBR)

  • Government to review dairy export quotas. (NBR)

  • Kiwi founder launches litigation against Fijian resort receivers. (NBR)

  • NZ business confidence data for July was up 9%. (Stuff)

  • NZ building consent data for July showed a 5% increase in NZ. (RT)

  • L'Oreal denies wanting to shift NZ operations to Australia. (Herald)

  • Colin de Grandhomme retires from international cricket. (Herald)

  • Australia reduced the COVID-19 isolation period to 5 days if asymptomatic. (9 News)

  • Cameron Smith and six others join Saudi-back LIV Golf. (Herald)

  • Fed officials see US interest rates rising further. (RT)

  • NASA to launch a rocket to the moon on Saturday. (BBC)

  • According to Finnish ECB policymaker Olli Rehn, the ECB will raise rates next week and in the future. (RT)

  • Goldman warns that gas prices could push UK inflation to 22%. (AFR)

  • Former Soviet leader Mikhail Gorbachev dies at age 91. (BBC)

  • Ukraine seeks to re-take the city of Kherson. (BBC)

  • China prepares to appoint Xi Jinping for a third term (AFR)

  • Economists expect India's economy to grow at its fastest pace. (RT)

Deal Flow

Investments/ M&A

  • Roper Technology is acquiring educational software provider Frontline Education in a $3.7B (USD) deal. (RT)

  • Oakley Capital agreed to buy a minority stake in Phenna group, a British testing and inspection company, at a $1.2B+ (USD) valuation. (BBG)

  • BGC Group has stopped its $1B (AUD) sale due to market conditions. (AFR)

  • Hong Kong private equity firm PGA has acquired a Japanese theme park for $720m (USD). (BBG)

  • DGL has acquired Aqudex ($7m AUD), BTX ($7.2m AUD), Acacia Ridge Container Park ($5m AUD) and Clarkson Freightlines ($6.75m) for a total of $26m (AUD). (NBR)

  • Potentia bought more Nitro Software at $1.58 (AUD) to up its stake to 19.9%. (AFR)

  • Radius Care to buy Matamata Country Club for 17 million NZD. (NBR)

  • CPE Capital, a Sydney-based PE firm, has a deal to acquire TAE Aerospace and the Australian operations of Swiss government-owned RUAG. These businesses will be added to CPE's company ASDAM. (AFR)

  • Collaborative Aotearoa, an online volunteer platform, has been bought by Volunteering New Zealand.

VC & Fundraising

  • Swedish PE firm EQT raises $15B for new fund despite headwinds. (BBG)

  • Botanix Pharmaceuticals is looking to raise $5m (AUD) to take its Sofpironium Bromide product into sales in the United States. (AFR)

Equity Raises

  • Mirvac chases investors for $600m (AUD) - $750m (AUD) to bankroll its build-to-rent portfolio and operating investors. (AFR)

  • Australian Pacific Coal to put a $100m (AUD) renounceable and underwritten rights issue to investors, of which $71m (AUD) would be earmarked for repaying debt and $29m (AUD) odd for Dartbrook Mine working capital. (AFR)

  • Lender MoneyMe is in the market for a $20m (AUD) share placement at a 28% discount. (AFR)

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