PRESS DIGEST-Australian Business News - May 6
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)
The third export coal terminal in Newcastle, New South Wales, is facing significant delays, which may prevent the terminal from reaching its annual capacity of 33 million tonnes by six to 12 months. Dredging at the site is yet to start due to contamination from the old steelworks nearby, without which capesize class vessels will be unable to use the terminal. The project, which is being constructed by the Newcastle Coal Infrastructure Group, is currently due to load its first ship by March next year. Page 48.
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Singapore-listed commodity trader Noble Group (NOBG.SI) yesterday increased its takeover offer for mining company Gloucester Coal (GCL.AX) by 24 percent to A$6 a share, or A$500 million in total. Noble increased its bid in an effort to prevent a merger between Gloucester and rival Whitehaven Coal (WHC.AX). Although the board of Gloucester had previously determined that Noble's original takeover bid of A$4.85 was inferior to the proposed merger with Whitehaven, the board will have to consider Noble's increased offer. Page 48.
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Administrators to collapsed forestry and horticulture investment group Timbercorp yesterday held creditor meetings in Melbourne, with administrator Mark Korda saying that a number of the investment schemes "aren't viable." Mr Korda said the company would today lodge an application in the Federal Court to use A$12 million in funds to harvest olive crops over the next seven weeks, saying "we think the deal's commercial." Timbercorp owes secured creditors A$661 million, with a further A$14 million owed to unsecured creditors. Page 49.
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West Australian Newspapers (WAN.AX) yesterday announced results for the nine months to the end of March. Chief executive Chris Wharton cut the company's full-year net profit forecast to between A$93 million and A$98 million, down from expectations announced three months ago of between A$100 million and A$108 million. However, Mr Wharton said falls in advertising revenue have stabilised, saying "while no turnaround is yet apparent, no further decline is expected." Page 50.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Steelmaker BlueScope Steel (BSL.AX) yesterday announced it is to undertake a A$1.413 billion raising from shareholders on a pro-rata basis at A$1.55 a share, a 40 percent discount to the company's last traded price. BlueScope also said it has secured new bank loan facilities of A$1.27 billion. Chief executive Paul O'Malley said the funds from the raising and the new loans would be used to refinance A$2.09 billion of debt to beyond January 2012. Mr O'Malley said the raising will leave the company in "a very strong financial position." Page 21.
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Oil and gas producer Woodside Petroleum's (WPL.AX) chief executive officer Don Voelte has criticised the Federal Government's emissions trading scheme (ETS), saying the changes to the scheme announced this week still fail to acknowledge the importance of gas exports. Mr Voelte said that liquefied natural gas (LNG) is "part of the solution" to climate change. Mr Voelte said that the scheme, even with the recent changes, risks halving the size of the LNG sector from what it would otherwise be in 2030. Page 21.
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Andrew Michelmore, the chief executive of mining company OZ Minerals (OZL.AX), is to become the manager of the Australian division of China Minmetals. Minmetals recently purchased the majority of OZ's assets in a US$1.2 billion rescue package, although the deal is still to be approved by OZ shareholders. Mr Michelmore will remain as chief executive of OZ Minerals until the deal with Minmetals is completed, and yesterday said he would remain a shareholder in the company. Page 21. Continued...
