ENERGY
Titan dips on debut
Oil and gas services company Titan Energy Services has made a negative debut on the Australian stock exchange. However, the company says it is seeking to expand its equipment hire business and is in early-stage talks with transport firms about potential joint ventures. The Queensland-focused firm eased 5? to 95? yesterday, after hitting an earlier low of 87? on the Australian Stock Exchange. Titan's initial public offer of 5 million shares at $1 each, plus 500,000 shares discounted to 90? each under an employee offer, was oversubscribed. The company is targeting the coal seam gas and, shale gas industries as growth markets.
CONSTRUCTION
Contraction slows
Australia's construction industry continued to decline in November but at a slower pace, the latest Australian Industry Group/Housing Industry Association Performance of Construction Index shows. It rose 4.9 points to 39.6. A reading of 50 or above shows expansion, or contraction under 50. The result showed that while construction activity continued to decline, the rate had slowed. House building activity, buoyed by an interest rates cut in November, rose to 38.6 points.
FINANCE
MF Global delay
MF Global's 13,000 Australian clients will have to wait until at least March next year before they see any of the $300 million they are owed by the failed broker. In an email to clients, administrator Chris Campbell of Deloitte said he needed to obtain answers to legal questions from a court before he could start distributing the money, "most likely in February 2012 when the courts resume from the Christmas break". He said he would need court guidance on how to value each client's claim, how to treat segregated accounts and how to divide up money recovered from clearing houses and other counter-parties.
CHILDCARE
ABC fight on hold
A bitter legal battle between the founders of ABC Learning, Eddy Groves and his ex-wife, has been put on hold for another week. Dr Le Neve Groves, pictured, who co-founded the empire that collapsed in 2008, is suing her former husband for $44.2 million. She alleges she never agreed to guarantee a margin loan for Mr Groves and that her signature on guarantee documents was forged. The matter was adjourned last month after her lawyers amended their argument.
SUPERANNUATION
Transparency call
Australia's $1.3 trillion superannuation industry lacks transparency and workers should receive more information about who governs their retirement money and where it is invested, a report says. A CPA Australia issues paper calls for increased transparency and disclosure in the superannuation industry and says reporting standards should match those of publicly listed companies. More than 75 per cent of CPA members polled believe there needs to be greater transparency around costs and underlying asset investments, and 90 per cent said trustee and senior management salaries should be more transparent.
Frequently Asked Questions about this Article…
What happened to Titan Energy Services on its ASX debut and why did the stock dip?
Titan Energy Services made a negative debut on the Australian Stock Exchange, easing about 5% to 95 cents after earlier falling to 87 cents. The company's initial public offer of 5 million shares at $1 each (plus 500,000 employee shares at 90 cents) had been oversubscribed, but the stock still opened lower on its first trading day.
What growth plans has Titan Energy Services announced that investors should know about?
Titan Energy Services said it is seeking to expand its equipment hire business and is in early-stage talks with transport firms about potential joint ventures. The Queensland-focused company is targeting growth markets in coal seam gas and shale gas.
How is Australia’s construction industry performing according to the latest Performance of Construction Index?
The Australian Industry Group/Housing Industry Association Performance of Construction Index rose 4.9 points to 39.6 in November. A reading below 50 indicates contraction, so while the industry continued to decline it did so at a slower pace than before.
Did house building activity change and what drove that movement?
Yes — house building activity rose to 38.6 points in the index. The report says this improvement was buoyed by an interest rate cut in November, though the reading remains below the 50 threshold that indicates expansion.
What is the situation for MF Global’s Australian clients waiting for funds?
About 13,000 Australian clients of MF Global are owed about $300 million and will have to wait before seeing any of that money. The administrator from Deloitte said he needs court guidance on legal questions — including how to value claims and treat segregated accounts — and indicated distributions are most likely to begin when the courts resume (the administrator mentioned February 2012), although one report noted clients may have to wait until at least March next year.
What is the latest update on the legal dispute involving ABC Learning’s founders?
A bitter legal battle between ABC Learning co-founder Eddy Groves and his ex-wife Dr Le Neve Groves has been put on hold for another week. Dr Le Neve Groves is suing for $44.2 million, alleging she did not agree to guarantee a margin loan and that her signature on guarantee documents was forged; the matter was adjourned after her lawyers amended their argument.
What did the CPA Australia report say about transparency in the superannuation industry?
The CPA Australia issues paper said Australia’s $1.3 trillion superannuation industry lacks transparency and called for increased disclosure about who governs retirement money and where it is invested. The report recommends reporting standards that match those of publicly listed companies and greater transparency on costs and underlying assets.
What specific transparency changes do CPA Australia members want for super funds?
According to the CPA survey cited in the report, more than 75% of members believe there should be greater transparency around costs and the underlying asset investments of super funds, and 90% said trustee and senior management salaries should be more transparent.
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