PRESS DIGEST-Australian Business News - May 27
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)
Mining company PanAust (PNA.AX) yesterday entered a trading halt, announcing it would undertake a A$358 million equity raising. The raising will consist of A$180 million from a new investor, China's Guangdong Rising Assets Management, a A$28 million institutional placement, and a rights issue that could raise up to A$114 million. The deal with Guandong, which would give the Chinese company a 19.9 percent stake in PanAust, requires approval from both Australian regulators and PanAust shareholders. Page 16.
- - - -
Grocery wholesaler Metcash (MTS.AX) is to argue against supermarket chain Woolworths' (WOW.AX) acquisition of organic retailer Macro Wholefoods in a submission to the Australian Competition and Consumer Commission. The regulator is considering whether gourmet and organic stores such as Macro should be considered as separate from mainstream grocery retailers. Metcash will argue that the proposed acquisition will remove another competitor from the retail grocery sector. Page 16.
- - - -
Laboratory testing group Campbell Brothers (CPB.AX) yesterday reported its full-year results, with net profit rising 49 percent to A$106.2 million, in line with the company's previous forecast in February, and analyst expectations. However, managing director Greg Kilmister warned that business conditions had weakened during the three months to the end of March, and the company did not provide guidance due to uncertainty in the mining sector affecting its mineral testing services. Page 16.
- - - -
Private hospital operator Ramsay Health Care (RHC.AX) yesterday raised its guidance for earnings per share (EPS) growth to 20 percent, up from the company's previous guidance in February of between 10 percent and 12 percent growth. Chief executive Chris Rex said 'the underlying business is going well but the reason for the upgrade is obviously that we are paying less interest on the debt than we originally budgeted for.' The company reported EPS growth of 11.8 percent to A60.7 cents for the 2008 financial year. Page 16.
- - - -
THE AUSTRALIAN (www.theaustralian.news.com.au)
The assets of collapsed forestry and horticulture investment group Great Southern have already attracted attention from rival agribusiness companies including ITC, Rewards Group and Gunns. Gunns says it has already been in contact with Great Southern's administrators, Ferrier Hodgson, with a spokesperson saying 'Gunns is always looking for opportunities to expand.' Ferrier Hodgson will hold a creditors' meeting in Melbourne this morning, following Great Southern's collapse last week. Page 29.
- - - -
Mining company Citic Pacific Mining's Sino Iron magnetite project in Western Australia's Pilbara region has been delayed but is expected to reach first production next year. The A$3.85 billion project is the first Chinese mine development in Australia, and Citic will become the country's fourth-largest iron ore producer when the project reaches its full production capacity of 27.6 million tonnes a year. Chief executive Barry Fitzgerald says the delays are the result of the project's approval process. Page 29.
- - - -
Low-cost carrier Jetstar yesterday cancelled almost a third of its flights to Japan next month, as passenger numbers have slumped due to fears about swine flu. A spokesperson for the airline said the impact of the flu had led to the Japanese Education Ministry recommending that schools cancel or delay overseas trips, which has led to cancellations from 'Japanese nationals of any background or persuasion.' The airline said it would be ready to reintroduce flights when demand levels return to normal. Page 31. Continued...
