Breakfast Deals: Sundance strut

Sundance insists it’s purged itself of a Hanlong hangover, while Karoon Gas taps institutional shareholders for cash.

Sundance Resources is doing its best to put its failed Hanlong deal behind it, while Fortescue Metals Group is doing its best to keep its infrastructure stake sale in front of it. Meanwhile, Karoon Gas and BWP Trust are about to raise some cash and ANZ Bank has just finished doing so.

Sundance Resources, Fortescue Metals Group

Sundance Resources chairman George Jones has begun talking up the African-focussed iron ore miner four months after the spectacular collapse of the world’s longest takeover talks with Sichuan Hanlong Mining.

Speaking to the Diggers & Dealers mining conference in Kalgoorlie, Jones said that 95 per cent of the company’s register has been turned over since the $1.3 billion ‘offer’ from Hanlong fell over with the arrest of it chairman Liu Han for allegedly harbouring his fugitive brother.

You can’t make that up, but Sundance is trying to play it down.

“The damage had already been done…95 per cent of our register has turned over since the termination of Hanlong, so that has been purged,” said Jones.

Sundance’s share price continues to dwindle around 8 cents a pop, well down on the 45 cents a share Hanlong was supposed to be putting up.

But now Sundance has issued tender documents for the financing and construction of the Mbalam-Nabeba iron ore project that straddles the border of Cameroon and Congo.

The iron ore hopeful decided recently to split the two, rather than trying to land a big fish to bring the project to life.

The company is also aiming to have customers signed up by the end of the year, with the production target of 2017 in mind.

At current prices, no problem. But the global iron ore market is destined to see the imbalance towards demand reverse and with that will come falling prices.

Best of luck to Sundance.

Also from the Diggers & Dealers conference, Fortescue Metals Group founder Andrew Forrest was awarded the GJ Stokes Memorial Award for his contribution to the mining industry.

Forrest said the company’s strategy of selling a minority stake in its infrastructure – if the price is right, that is – hasn’t changed.

Karoon Gas Australia, BWP Trust

Karoon Gas Australia is tapping institutional shareholders for $150 million to strengthen its balance sheet as it tries to nut out some farm-out agreements.

The oil and gas company has thrown its shares into a trading halt after announcing the underwritten placement at $5.10 a share, which is a 9 per cent discount on the last trading price.

Karoon said it would put the funds into rig contract and farm-out talks, as well as drilling activity.

Meanwhile, BWP Trust has also gone into a trading halt “following a media inquiry which indicates that confidentiality may have been lost in relation to an incomplete proposal involving a potential equity raising”.

(Could a company just for once say, “Someone ratted us out”?)

Well, The Australian, among others, has the story. Apparently, it’s a $150 million to $200 million capital raising to purchase properties from retail giant Wesfarmers.

Pacific Retail REIT

Shopping centre-focussed Pacific Retail REIT is reportedly going back to the drawing board after its $367 million bookbuild failed to generate enough interest.

The Australian understands that when the books, run by investment bank Moelis, closed they only had bids for $250 million.

The newspaper says sources indicate the trust would tweak its format, adding that they might return to market “once conditions were more favourable”.

Meanwhile, the same newspaper reports that global giant Brookfield Office Properties has confirmed that its plan to float its $4 billion Australian office portfolio is “on the backburner”.

ANZ Banking Group

ANZ Banking Group has surpassed its $1 billion capital notes target, raising $1.12 billion from investors from the deal launched last month.

The notes, which will pay an initial distribution rate of 4.17 per cent or about 3.4 per cent above the bank bill swap rate, will qualify under the Basel III ‘additional’ Tier-1 capital.

ANZ’s Tier-1 capital ratio increases 0.3 per cent to 10.1 per cent. If for some reason the ratio breaches 5.125 per cent, the securities will convert into shares.

After 10 years the securities will convert into ordinary stock, unless after eight years the bank decides to utilise an option to redeem them for cash or equity.

Wrapping up

Shopping centre giant (don’t ever call them a mall owner) Westfield Group is reportedly going up against the consumer watchdog as it looks to take over the $620 million Karrinyup Shopping Centre in Perth with cousin Westfield Retail Trust.

The Australian reports that the issue with the Australian Competition and Consumer Commission is for Westfield to continue to hold on to the smaller Innaloo shopping centre.

And finally, Norton Gold Fields has moved into compulsory acquisition territory with Kalgoorlie Mining Company by taking a stake of more than 90 per cent.