PRESS DIGEST-Australian Business News - April 30
Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
Lachlan Murdoch has bought a 9.1 percent stake in regional television and radio company Prime Media Group (PRT.AX) for around A$16 million through his company Illyria. Mr Murdoch acquired the stake during Prime's A$110 million capital raising, completed this week. Mr Murdoch was part of a failed attempt to take control of James Packer's Consolidated Media Holdings (CMJ.AX) in 2007, and is believed to have considered a number of other Australian media assets since then. Page 15.
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Dairy products producer Fonterra yesterday announced that it has agreed to sell its Peters ice-cream brand in Western Australia and the Connoisseur ice-cream brand to food company Nestle. Fonterra also said it has sold the licence to produce and market the Cadbury ice-cream brand in Australia to dairy group Bulla. Although Fonterra would not comment on the sale price, analysts estimate the deals will provide Fonterra with between A$35 million and A$45 million. Page 15.
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Queensland toll-road operator BrisConnections is under pressure from its underwriters to pursue investors who have defaulted on the instalment payments due on the company's units yesterday, according to analysts. BrisConnections is to send out a notice to defaulting investors today, and will inform underwriters Macquarie Holdings (MQG.AX) and Deutsche Bank of the extent of the shortfall on Monday. Up to 70 percent of the register is thought to have defaulted on the payments, including rebel investor Nicholas Bolton. Page 15.
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Gaming group Centrebet (CIL.AX) yesterday said it expects full-year net profit to the end of June to be between A$7.5 million and A$8.5 million, down from last year's result of A$13 million. The company said new fees charged by state racing authorities had cut A$1.4 million from profits, while revenues from on-course bookmaking have fallen 33 percent as customers move to online accounts. Centrebet said it is undertaking a cost-cutting program aimed at saving A$2 million, including the loss of 34 jobs. Page 15.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
David Clarke has stepped down as a director of financial services group AMP (AMP.AX), the second to do so within a week. Mr Clarke announced his surprise decision yesterday, saying that his former role as chief executive of collapsed Allco Finance Group may cause uncertainty among [AMP] shareholders. Mr Clarke's resignation came on the eve of a report by consultants RiskMetrics which recommends that shareholders oppose Mr Clarke's re-election at the company's annual meeting on May 14. Page 17.
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Brewer Lion Nathan LNN.AX yesterday agreed to a A$3.5 billion takeover by its major stakeholder, Japan's Kirin Holdings (2503.T). The A$12.22-a-share deal, which includes a A72 cents fully franked cash dividend, values Lion at A$6.5 billion. Analysts believe that the deal is unlikely to be opposed by Lion's institutional shareholders or bettered by a counter offer. Lion chairman Geoff Ricketts said that the brewer's major brands, such as Tooheys and XXXX beers, would remain Australian icons. Page 17.
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Victorian gas explorer Karoon Gas (KAR.AX) yesterday announced a large gas find at its Poseidon-1 well in West Australia's Browse Basin. The gas explorer said that the exploration well, which is co-owned by global energy company ConocoPhillips, is targeting 5 to 10 trillion cubic feet of gas, with drilling yet to penetrate beyond the lowermost sand interval. Karoon's share price surged 42 percent on the news to a record high of A$5.40, giving it a market value of A$735 million. Page 19. Continued...
