Weekly | Insignia board weighs $2.7b Bain bid against turnaround
As of the close on Friday, $S&P/ASX 200(XJO.AU)$ closed at 8,296.00 on Friday, down 1.48% in the past 5 days.
1.$Insignia Financial Ltd(IFL.AU)$ +17.21%
It is doubtless a positive to see that the Insignia Financial Ltd share price has gained some 40% in the last three months. But over the last half decade, the stock has not performed well. In fact, the share price is down 58%, which falls well short of the return you could get by buying an index fund. Although the past week has been more reassuring for shareholders, they're still in the red over the last five years
According to the release, after the market close on 12 December, the ASX 200 share received a confidential, preliminary, non-binding and indicative proposal to acquire it by way of a scheme of arrangement from private equity firm Bain Capital.
The company revealed that under the terms of the indicative proposal, Insignia Financial shareholders would receive $4.00 cash per share. This represents a 17.6% premium to where the ASX 200 share closed yesterday's session and values the company at approximately $2.68 billion. The company also notes that any transaction would, if entered into, be subject to the approval of the Foreign Investment Review Board (FIRB) and the Australian Prudential Regulation Authority (APRA).
2.$TABCORP HOLDINGS LTD(TAH.AU)$ +6.25%
Tabcorp Holdings Limited is an Australia-based company, which is engaged in the provision of gambling, entertainment and integrity services. Its segments include Wagering and Media and Gaming Services. The Wagering and Media segment is engaged in the provision of totalizator and fixed odds betting and retail wagering networks, and global racing media business. It operates a diverse and complementary portfolio of operations, such as TAB, Sky Racing and Premier Gateway International (PGI).
The latest layoffs come as the beleaguered wagering and betting company hunts cost efficiencies under new CEO Gillon McLachlan, and become a simpler, more productive and digitally competitive outfit.
200 fresh job cuts at Tabcorp, one-quarter of which are hitting its customer division, are the latest marker of redundancies sweeping media companies, agencies and brands – some overt, others by stealth. The economy may be on the turn but some think slow growth and cost cutting due to sustained business model pressure may be "the new normal".
3.$CORONADO GLOBAL RESOURCE-CDI(CRN.AU)$ +5.42%
Coronado Global Resources Inc. is a global producer, marketer, and exporter of a full range of metallurgical coals. The Company has a portfolio of operating mines and development projects in Queensland, Australia, and in the states of Pennsylvania, Virginia and West Virginia in the United States. It has operations in Australia and the United States.
Coronado Global Resources’ Mammoth underground coal mine is set to begin mining operations, having received approval. First coal is scheduled for December 19, and will mark the official opening of Mammoth.
“[Mammoth] will mark our first foray into underground mining in Australia and underpins our strategy of delivering organic growth to increase production and lower costs,” Coronado chief executive officer Douglas Thompson said.
4.$DEEP YELLOW LTD(DYL.AU)$ +5.35%
Deep Yellow Limited (DYL) is a mineral exploration company with a focus on uranium. The Company is progressing a dual-pillar growth strategy to establish a globally diversified, Tier-1 uranium company aiming to produce 10 plus Mlb p.a.
With 72% institutional ownership, Deep Yellow Limited is a favorite amongst the big guns. Given the large stake in the stock by institutions, Deep Yellow's stock price might be vulnerable to their trading decisions. A total of 8 investors have a majority stake in the company with 52% ownership.
Deep Yellow already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions.
5.$KAROON ENERGY LTD(KAR.AU)$ +4.83%
Macquarie Group Limited has become a substantial holder in Karoon Energy Ltd, with significant control over a large portion of voting shares. This development highlights Macquarie’s strategic interest in Karoon, potentially impacting the company’s future direction and stock market performance. Investors may find this shift in ownership noteworthy as it could influence Karoon’s financial dynamics and market valuation.
A look at the shareholders of Karoon Energy Ltd can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 59% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Institutions, on the other hand, account for 39% of the company's stockholders. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.
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