Factbox: Deals that may be affected by Australia’s foreign M&A crackdown

Australia plans to give its foreign investment regulator sweeping new powers to intervene in all takeovers from overseas interests regardless of dollar value, citing security concerns. The changes could affect a hefty pipeline of cross-border deals that are either in progress or the subject of market speculation: DEALS IN PLAY: Virgin Australia (VAH.AX) - the country’s No. 2 airline is being sold by administrators. Frontrunners are down to U.S. private equity firms Bain Capital and Cyrus Capital Healius (HLS.AX) - Australia’s medical and imaging centre chain is selling its medical centers division. China’s Jangho owns 15% of the company and suitors named in media reports include Hong Kong-based KKR, PAG, along with Australia’s BGH Capital QCLNG - Royal Dutch Shell (RDSb.L) is weighing the potential sale of its 26.25% stake in the common facilities on Queensland Curtis LNG, which is expected to fetch more than A$2 billion. No frontrunners have been named. Infigen (IFN.AX) - the wind farm company this week rejected an unsolicited bid of $536 million from Philippines firm UAC Tianqui (002466.SZ) - the Chinese lithium producer may sell a stake in an Australian project due to financial problems Treasury Wine’s (TWE.AX) Penfolds - the wine conglomerate has said it wants to spin off its most prestigious label in 2021. No deal structure has been disclosed. China is Treasury’s biggest market. POTENTIAL FUTURE DEALS: Vocus (VOC.AX) - the telco has been fending off M&A approaches, including a A$3 billion offer from AGL, following share price underperformance in recent years, Westpac Banking Corp’s (WBC.AX) life insurance unit - the bank is considering selling the unit as part of an industry-wide simplification drive. The unit is widely seen as attractive to Asian financial entities looking abroad. National Australia Bank (NAB.AX) wealth unit - the bank has been trying to offload MLC for several years, but said late last year it was considering an ASX listing instead. Crown Resorts (CWN.AX) - Hong Kong casino giant Melco Resorts (MLCO.O) bought 9.99% of its Australian rival from founder James Packer, sending its shares higher on hopes of a full takeover before Melco froze the plan due to the coronavirus shutdown Afterpay (APT.AX) - China’s Tencent Holdings (0700.HK) bought a 5% stake of the Australian buy-now-pay-later company, sending its shares rocketing partly because of speculation it might lead to a bigger stake. ($1 = 1.4351 Australian dollars)

Leave a Reply

Your email address will not be published. Required fields are marked *