PRESS DIGEST-Australian Business News - Jan 28
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)
Australian miner Macarthur Coal (MCC.AX) says it is standing by the revised coal sale figures announced last month, when the company said it would sell 3.9 million tonnes of coal for the 12 months to the end of June this year. The miner yesterday said it had sold 2.3 million tonnes in the six months to the end of December. Macarthur Coal says that despite falling demand for its pulverised coal injection product, it will be able to increase the amount of thermal coal it sells. Page 14.
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A survey by the Australian National Retailers Association (ANRA) has found that Australian consumers are planning to cut discretionary spending by an average 21 percent in the first six months of this year. The ANRA says the results show the impact of falls in superannuation and share portfolios, as well as increasing concern about job losses. Analysts say that the Federal Government's recent A$10 billion stimulus package helped Christmas holiday sales, but this is unlikely to be sustained. Page 43.
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Receivers for child-care group ABC Learning Centres (ABS.AX) are to sell the collapsed company's 720 profitable centres by the end of 2009, with the sales process to start in the next two to three months. Receiver Chris Honey, of McGrathNicol, said the 55 centres which have already been closed were not profitable, and the 241 centres which are currently being sold by court-appointed receivers PPB are also loss-making. The remaining profitable centres have been supported by an additional A$35 million in funds from ABC's lenders. Page 43.
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Retail shareholders are expected to be wary of the rights issue from diversified company Wesfarmers (WES.AX) which opens tomorrow, after many were hurt by the company's previous issue in April 2008. The previous rights issue was priced at A$29 a share, since when the company's shareprice has slumped, closing at A$16.40 yesterday. Tomorrow's rights issue, priced at A$13.50 a share, closes on February 23, and the company expects the take-up rate may be as low as 20 percent. Last week's institutional raising provided the company with A$2.9 billion. Page 43.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Former Babcock & Brown (BNB.AX) (B&B) executives Phil Green and Rob Topfer may together receive over A$3 million after B&B's private equity offshoot B&B Capital said it would return A$100.7 million to shareholders. B&B Capital yesterday said it has A$325 million in cash reserves, and will keep A$200 million of that to support the business, although it has no plans to make further investments. A spokeswoman for B&B said the planned capital return was in response to requests from institutional shareholders. Page 19.
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Speculation is growing that miner Rio Tinto (RIO.AX) planning a rights issue to raise between A$4 billion and A$6 billion. Talk of the possible raising has continued despite comments from Rio chief executive Tom Albanese earlier this month that a raising would not be required unless conditions deteriorated. The mining company has US$38.9 billion of debt remaining from its acquisition of aluminium manufacturer Alcan in 2007, and must repay US$8.9 billion of debt by October 22 this year. Page 19.
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A report from marketing company Aegis Media has predicted that the Australian advertising industry will see growth of only zero to 2 percent this year, although real spending will fall by between 3 percent and 5 percent once inflation is taken into account. There is speculation that some areas of the market are experiencing greater falls, with industry insiders tipping spending on television to fall by as much as 10 percent in the current quarter compared to last year. Official television revenue share figures for the past six months will be released this week. Page 21. Continued...
