Three Waters Tweaks On The Cards

November 01, 2022

Good Morning,

The New Zealand government is open to tweaking the three waters reforms, the Reserve Bank of New Zealand stress testing has revealed banks can cope with a 47% decrease in house prices and a 9% unemployment level, Australia's population is expected to grow by 3m people by 2030, the Egyptian Central Bank has raised rates by 200 basis points & Luiz Inácio Lula da Silva is the new president of Brazil.

Watch out for the Reserve Bank of Australia's interest rate decision tomorrow & MacQuant has backed Dauville Legend to win the Melbourne Cup tomorrow.

Let's jump in.

Before The Bell

Markets

  • Pushpay was the most traded stock on the NZX today as it marched up on the back of a strong Friday on Wall Street. (Herald)

  • The ASX was up on the back of a strong Wall Street showing on Friday. It meant it finished as the best October for shares since 2012 on the ASX. (AFR)

  • Chianese stocks in Hong Kong dropped. The Hang Seng China index fell 1.8% to hit its lowest level since 2005. (BBG)

Earnings and Data

  • AoFrio achieved an 18% increase in revenue in Q3 2022 and a 0.9% increase in gross margin. (NZX)

  • Fulton Hogan has notched up a record result. Net profit was up to $301m (NZD) from $282.9m (NZD). Additionally, revenue was up 10%, and dividends were up 4c a share. (NBR)

  • Eyes are on the Reserve Bank of Australia tomorrow and the Bank of England and the Federal Reserve later in the week to see what rate hikes will take place.

News Summary

  • The New Zealand government is open to tweaking the three waters reforms after a coalition of mayors pushed a new idea. (Stuff)

  • The National party have revealed three potential candidates for the Hamilton West by-election. (Stuff)

  • The Reserve Bank of New Zealand stress testing has revealed banks can cope with a 47% decrease in house prices and a 9% unemployment level. (Stuff)

  • Accusations are flying around as Callaghan Innovation and small business Manaaki face off. (Stuff)

  • Australia's population is expected to grow by 3m people by 2030. (9 News)

  • Macquarie's quant team has backed Dauville Legend to win the Melbourne Cup. (AFR)

  • Waves of air strikes have hit Ukraine, including the capital city of Kyiv. (BBC)

  • German households have faced a 17.1% increase in gas prices in the 1H of 2022. (RT)

  • A bridge collapse in India now has a death toll of 141 people. (BBC)

  • The Egyptian Central Bank has raised rates by 200 basis points. (RT)

  • Luiz Inácio Lula da Silva is the new president of Brazil. (BBC)

Deal Flow

Investments/ M&A

  • US industrial firm Emerson Electric has sold a majorty stake in its climate technology unit to alternative investment firm Blackstone. The deal valued the unit at $14B (USD). (RT)

  • Walgreens-controlled VillageMD, a primary healthcare provider, is exploring a deal to merge with Warburg Pincus-backed Summit Health, a healthcare network and parent of CityMD. The deal would value the combined entity at $5B to $10B (USD). (BBG)

  • HSBC's Candian unit has lost the National Bank of Canada and Candian Imperial Bank of Commerce as bidders. However, the Bank of Montreal is still pursuing the deal. It is believed to be valued at $5.88B to $7.35B (USD). (RT)

  • COSCO Shipping will buy $2.7B (USD) worth of port assets from its parent. (RT)

  • Thermo Fisher Scientific, an American supplier of scientific instruments, consumables, and chemicals, is nearing a deal to acquire England-based diagnostic firm Binding Sites from PE firm Nordic Capital for ~$2.3B (USD). (BBG)

  • Bank of America has been asked to review and most likely sell a controlling stake in TPG's broadband network business Vision Network. It could be worth upwards of $1B (AUD). (AFR)

  • The proposed merger of Cordish Dixon PE firms has been called off after investors voiced their displeasure about merging the three funds into a combined entity with a valuation of $650m (AUD). (AFR)

  • PE firm Pacific Equity Partners is reading a ~$500m (AUD) bid for education and workforce software group ReadyTech. (AFR)

  • Malaysian-based RHB Bank plans to introduce a digital platform in 2023 via a joint venture with Boost, an arm of communications giant Axiata Group that could invest as much as $212m (USD) in the venture. (BBG)

  • Qatar is in talks with TotalEnergies, a French multinational integrated energy and petroleum company & Eni SpA, an Italian multinational energy company, for a 30% stake in an exploration block in waters off Lebanon. (BBG)

  • Brickworks, a brick manufacturer, has purchased another large parcel of FBR shares, a bricklayer robot maker. Broker MST crossed 35m FBR shares which is a 1% stake in the company taking Brickworks' total stake to ~16%. (AFR)

  • A KKR portfolio company Alludo, an American software company, has bid $2 (AUD) a share for Nitro Software. (AFR)

  • Nitro Software board will not accept an offer of $1.80 (AUD) from Potentia Capital. (AFR)

  • PE firm Silver Lake is looking at exit options for TEG, a ticketing and live entertainment business. Options include a sale or a float. (AFR)

  • IMF Investors' private equity arm is one of the last bidders for Australian radiology company PRP Diagnostic Imaging. (AFR)

  • PAC Capital, an Australian hedge fund focusing on Esports and gaming, has acquired Clearwater Portfolio Management. (AFR)

VC & Fundraising

  • Australian hearing device start-up Hemideina was one of the businesses that presented at stockbroker Wilson's annual 'Great Drugs & devices' conference. It is believed Hemideina is angling at a ~$20m (AUD) series B next year. (AFR)

Equity Raises

  • Credit Suisse has invited at least 20 banks to join a syndicate for a $4B (USD) rights issue. (BBG)

  • Dubai is seeking to raise $362m (USD) from Emirates Central Cooling System, a district cooling company, by selling a 10% stake. It is priced at $0.36. (BBG)

  • Dubai private school operator Taaleem Holdings is seeking to raise $204m (USD) via an IPO. (BBG)

  • Abu Dhabi AI firm Bayanat AI more than tripled in its Abu Dhabi trading debut after raising $171m (USD). (BBG)

  • Australian Strategic Metal, a critical metals play, is seeking $30m (AUD) via a share placement at a 12.4% discount. (AFR)

  • Greenfern Industries closed its rights issue, having raised ~$1.74m (NZD). (NZX)

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