PRESS DIGEST-Australian Business News - Sept 16
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)
Expressions of interest to acquire the forestry assets of failed managed investment scheme provider Great Southern are due to close today. Receiver McGrath Nicol gained approval to uundertake the sale from the collapsed group's lenders last week. One of the consortiums seeking the assets, estimated to be worth A$500 million, is Black Tree Propretary Ltd. Black Tree's executive chairman Tony Jack yesterday said "the reconstruction we are proposing will align our interests with investors.' Page 45.
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The United States version of mining company BHP Billiton's (BHP.AX) annual report was released yesterday, revealing that the company's top executives received significantly greater pay than in the previous year. In the report, the miner's remuneration committee chairman, John Buchanan, defended the company's remuneration policy as sound. The increases, including a 50 percent boost to the pay of chief executive Marius Kloppers to US$10.4 million, are largely due to the company's long-term incentive plan, approved by shareholders in 2004. Page 45.
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Healthcare services provider Primary Health Care (PRY.AX) yesterday announced it will undertake a fully underwritten A$180 million capital raising. The placement is the second capital raising by the company in less than four months, after raising A$315 million through an institutional placement in May. The group's managing director, Ed Bateman, also said he will sell 11.6 million of his shares, almost a third of his holding. Mr Bateman said he remains committed to the company, noting that "there's still more than A$200 million of my family's worth in there.' Page 45.
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The hardware joint venture between supermarket chain Woolworths and United States-based home improvement company Lowe's has announced that it will spend A$400 million in Victoria over the next five to seven years, opening 30 "big-box' format stores. The move is seen as a challenge to the current market leader in the big-box hardware sector, Wesfarmer's Bunnings, with Victoria accounting for nearly 30 percent of Bunnings stores. The first store, located in the Melbourne suburb of Coolaroo, is due to open in late 2011. Page 46.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Mining company BHP Billiton (BHP.AX) yesterday announced it had increased its thermal coal and iron ore reserves substantially. The increases included a boost to marketable thermal coal reserves at its Mount Arthur coalmine in New South Wales from 168 million tonnes to 753 million tonnes, indicating that BHP expects approvals for expansion of the mine are close to being secured. Although the increases set up the company to take advantage of a global recovery, chief executive Marius Kloppers warned against expectations of a quick recovery. Page 35.
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The Reserve Bank of Australia yesterday released the minutes from its board meeting earlier this month. The minutes indicate that the board remains concerned that the Australian and global economies face "uncertainties,' and that factors such as business lending and credit remain weak. The board's comments increased market expectations that the central bank will retain the current official cash interest rate of 3 percent, however, analysts such as Josh Williamson and Paul Brennan from Citi say it is "likely' that the RBA will increase interest rates in December. Page 35.
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Only one day after formally approving the Gorgon liquefied natural gas (LNG) project in Western Australia, operator Chevron (CVX.N) and its partners have awarded a A$2.7 billion contract. The contract, for the engineering, procurement and construction management of the LNG plant on Barrow Island, has been gained by the Kellogg joint venture, made up of local contractor Clough and the former Halliburton subsidary KBR. The contract will provide Clough with around A$540 million of revenue over the next five years. Page 36. Continued...
