BRIEFS

TAKEOVER

By InvestSMART · 11 Jul 2012

By InvestSMART ·
11 Jul 2012

Comments

TAKEOVER

Hastings bid

The long-running contested bidding for control of Hastings Diversified has ratcheted up a notch, with the rival bidder to APA Holdings putting its bid on the table, ahead of the competition watchdog, the Australian Competition and Consumer Commission, deciding whether the APA bid can proceed. But while independent directors of Hastings Diversified have received a copy of the offer from Pipeline Partners, a consortium backed by Hastings-managed Utilities Trust of Australia and investment fund Caisse de depot et placement du Quebec, they have yet to release it to shareholders.

MEDICAL

Insider's view

Dr Joe Reich, a 3 per cent shareholder and director of the ophthalmic care company Vision Eye Institute, says the right of doctors to decide on the treatment of their patients must be retained in any takeover by medical services giant Primary Health Care. With Vision shares soaring 5.5 per cent to 38? yesterday on expectations Primary will add to its 19.77 per cent stake, Dr Reich said he would "entertain an offer" but medical sovereignty and board seats for doctors must be respected.

INVESTMENT

Chinese call

Australia should encourage more Chinese investment in domestic industries and reap the benefits of its immense capital reserves, a top foreign affairs bureaucrat says. The Department of Foreign Affairs and Trade secretary, Dennis Richardson, told a conference China is encouraging state-owned companies to seek investment opportunities abroad. "We should take advantage of that. We have always needed foreign capital to help develop our industries and unlock our potential," he told the Rebalancing and Sustaining Growth in China conference at the Australian National University in Canberra.

RETAIL

Losing sparkle

Michael Hill International, the listed jewellery chain, says full-year, same-store sales edged up 0.3 per cent as revenue in Australia continued to shrink. Same-store sales, for outlets open at least 12 months, fell to $473.2 million in the 12 months ended June 30, from $474.8 million a year earlier, the company said. Total sales rose 4.6 per cent to $510.2 million. "While the past 12 months has had its challenges ... the directors are satisfied with the overall performance of the group," the company's chairman, Sir Michael Hill, said.

Go to Google News, then click "Follow" button to add us.

Share this article and show your support

Frequently Asked Questions about this Article…

What's the current status of the Hastings Diversified takeover battle?

The long-running contested bidding for control of Hastings Diversified has intensified. APA Holdings has a bid under review, while a rival bidder — Pipeline Partners — has also put an offer on the table. Independent directors have received a copy of the Pipeline Partners offer but have not yet released it to shareholders, and the competition watchdog (the ACCC) is deciding whether the APA bid can proceed.

Who are the bidders for Hastings Diversified and what is Pipeline Partners?

The rival bidders include APA Holdings and Pipeline Partners. Pipeline Partners is a consortium backed by the Hastings-managed Utilities Trust of Australia and investment fund Caisse de dépôt et placement du Québec, which has submitted an offer to Hastings’ independent directors.

What role does the Australian Competition and Consumer Commission (ACCC) play in the Hastings takeover?

The ACCC is the competition regulator reviewing whether APA Holdings’ bid can proceed. Its decision will influence whether that offer advances in the takeover process and is an important milestone for Hastings shareholders to monitor.

As a Hastings shareholder, what should I watch for next in the takeover process?

Shareholders should look for official company announcements about the Pipeline Partners offer (independent directors have received it but not yet released it) and any updates from the ACCC on the APA bid. Those disclosures will clarify options, timelines and any board recommendations.

Why did Vision Eye Institute shares move and what is Primary Health Care's connection?

Vision Eye Institute shares rose after expectations that Primary Health Care — which already holds a 19.77% stake — might increase its holding. The market reaction was driven by speculation of further involvement from the medical services group.

What concerns are Vision Eye Institute directors and doctors raising about a potential takeover?

Dr Joe Reich, a 3% shareholder and director, said any takeover by Primary Health Care should respect doctors’ rights to decide patient treatment, preserve medical sovereignty and ensure board representation for doctors. He said he would 'entertain an offer' only if those conditions were respected.

What did Australia’s DFAT secretary say about Chinese investment and why might that matter to investors?

Dennis Richardson, secretary of the Department of Foreign Affairs and Trade, urged Australia to encourage more Chinese investment into domestic industries, noting Chinese state-owned companies are being encouraged to seek overseas opportunities. He suggested Australia should take advantage of foreign capital to help develop industries and unlock economic potential — a point investors may watch when assessing sector funding and cross-border deals.

How did Michael Hill International perform in its recent results and what should investors note?

Michael Hill International reported that same-store sales (for outlets open at least 12 months) fell slightly to $473.2 million from $474.8 million in the prior period, while total sales rose 4.6% to $510.2 million for the year ended June 30. The company said directors were satisfied with the group's overall performance despite ongoing challenges in the Australian market.