PRESS DIGEST-Australian Business News - Aug 29
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)
Equipment hire company National Hire (NHR.AX) yesterday announced a 2007-08 net profit of A$42.5 million, up from A$19.3 million the previous year. It was National Hire's first annual result after acquiring rival Coates Hire for A$2.9 billion last year in a private equity-backed deal. Managing director Andrew Aitken said the company, which is 66 percent owned by billionaire Kerry Stokes, "is committed to pursuing other opportunities that will assist in expanding the equipment sales and support business." Page 57.
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Troubled childcare centre operator ABC Learning Centres (ABS.AX) is today expected to restate its accounts following an audit by Ernst & Young. ABC Learning spokesman Andrew Barber said yesterday that the company had the support of key shareholders for the exercise. He declined to comment on the possibility that ABC Learning may yet extend its share trading halt and postpone its result announcement. Observers said continuing challenges meant the future of founder and chief executive Eddy Groves looked uncertain. Page 57.
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Brazilian mining group Vale RIO.N (VALE5.SA) has flagged an aggressive pipeline of projects in Australia. The global managing director of Vale's coal division, Renato Paladino, said in Brisbane yesterday that "Australia was off limits until a few years ago, but since we opened the office here in 2005, it has been good." However, he declined to comment on speculation that the company is set to make a takeover move on Brisbane-based Felix Resources (FLX.AX). Vale owns and operates the Carborough Downs coalmine in central Queensland. Page 58.
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Dairy Farmers revealed yesterday that farmers who have left the dairy co-operative since 2004 would receive a combined 30 percent of the takings from National Foods' proposed A$910 million takeover. Some Dairy Farmers shareholders who are still in the industry have expressed unhappiness at these terms, which were recommended early this week by the Dairy Farmers board. One farmer complained that the payout would dilute down the proceeds available to members who have remained with Dairy Farmers. Page 58.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Timber products company Gunns Ltd (GNS.AX) is no longer confident of securing finance or an equity partnership for its controversial A$2 billion Tasmanian pulp mill. While announcing Gunns' 2007-08 profit result of A$64.5 million, which fell short of its forecast of A$67 million, chairman John Gay said yesterday the company could not "provide an assurance that the mill project will proceed." Gunns faces a November 30 deadline set by Tasmanian Premier David Bartlett to obtain finance and begin construction. Page 21.
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HCF, Australia's third biggest health fund, has made a A$256 million takeover offer for Manchester Unity Australia (MUA). The board of MUA unanimously recommended the bid, which offers its members a cash payment of between A$200 and A$3000 depending on their individual policies. MUA chief executive John Brogden, a former New South Wales Liberal Party leader, said, "This is a very good deal for MUA." Mr Brogden will leave his position at MUA's helm if the deal goes through. Page 21.
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Queensland Gas Company (QGC) QGC.AX has booked a full-year profit of A$244.6 million in the 12 months to June 30, compared with a A$12.2 million loss a year earlier. Adding substantially to QGC's result was the sale of a 20 percent stake in some coal seam gas assets to Britain's BG Group (BG.L). QGC chief executive Richard Cottee said yesterday it had been a year of remarkable growth and the company would continue to expand and develop its reserves and infrastructure. Page 22. Continued...
