No profit in being miserable at BHP
Chairman Jac Nasser gave Mackenzie a warm welcome to kick off the hour-long news conference, saying he had "congratulated him several times this morning".
"I don't tire of hearing it," Mackenzie responded.
After praising Mackenzie some more, Nasser warned: "I don't want you to get too big a head here."
Nasser also had kind words for the "transformational" leadership of Kloppers, who apparently leaves BHP a "stronger, safer and better company".
Kloppers praised Mackenzie and Mackenzie in turn praised Kloppers. "This has been a great succession process. Of course, I'm a bit biased, given the outcome."
All that bonhomie apparently left no time to mention that BHP's first-half profit, announced at the same time, plummeted 57.8 per cent to $4.24 billion.
Tanks a lot
SPOTTED on Tuesday morning in the Qantas Club, nose deep in the newspapers as he waited for the delayed QF408 morning shuttle from Melbourne back to Sydney: Football Federation Australia chief executive David Gallop.
Gallop, the former boss of the trouble-prone NRL, seemed to be very much enjoying reading all about the tanking saga gripping rival code the AFL.
It must have been more fun than reading about suspicious betting plunges on round-ball matches or the endless sex scandals that plague NRL clubs.
Greens unseated
THE Greens have been left hunting for fresh shoots after a call-out for members willing to stand for election at the looming federal election came up short. In an email to members on Tuesday, the convener of the party's Victorian western metropolitan campaign committee, Simon Crawford, extended the nomination period for three safe Labor seats - Gorton, Maribyrnong and Gellibrand - until March 4 "due to the fact that no nominations have currently been received for those electorates".
With the Greens no longer besties with the ALP, running a candidate in every seat is no doubt of even more importance than usual.
Wyndham branch campaign co-ordinator Bro Sheffield-Brotherton told CBD nominations were initially only open for a couple of weeks starting in late January and it wasn't unusual to have to reopen the process.
He said the party already had a nomination for the other western metro seat, Lalor, and had run candidates in every federal seat for three or four elections. "It would be a disaster if we didn't field a candidate in every electorate. If you don't run, you can't get any votes."
And would he consider nominating? "Oh God no, I've done it twice before."
Canal dream sinks
IT is to be a little Venice on the coast of China, a slice of Shandong turned into a Gold Coast-style maze of canals, apartment blocks and high-rises. But Xing Hongtao's elaborate dream has hit a snag, with the Australian Securities and Investments Commission kiboshing his bid to list his property development group on the ASX.
Xing, of Hebei province, had hoped to float his property development and education businesses in a back-door listing involving a complex group of companies in mainland China, Hong Kong and Vanuatu.
The business has three projects - the waterfront development in Wehai, Shandong, another estate inland at Langfang, a satellite city of Beijing, and a school next to the Langfang project.
Sponsoring broker Novus Capital was to raise up to $8 million from punters, who would have ended up with 25 per cent of the company. Xing would have ended up with 66 per cent in return for his Vanuatuan vehicle selling the Hong Kong company that owns his mainland interests into ASX-listed shell Iatia.
CBD understands ASIC, which has been giving extra scrutiny to Chinese listings in recent months, has yet to give Iatia's people its reasons for issuing a permanent stop order on Friday.
However, several passages in the prospectus (prepared by executives and lawyers in mainland China) raised eyebrows.
It turns out that so far Xing only has rights to develop less than half the land involved, with acquisition of the rest to be financed "through proceeds from pre-sale loans from financial institutions" and the group's resources.
In addition, under Chinese law the educational business cannot be directly owned by Iatia, which was instead to control it through contracts with mainlanders.
It also seems Iatia would have needed to find $10.4 million within two years to buy out two of Xing's partners.
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Frequently Asked Questions about this Article…
BHP Billiton announced the retirement of chief executive Marius Kloppers and the appointment of Andrew Mackenzie — a former BP and Rio Tinto executive — as the new CEO. The change was presented as a smooth succession at a company news conference.
BHP reported that first‑half profit plunged 57.8% to US$4.24 billion, a sharp decline that was announced at the same time as the CEO succession.
Yes. Chairman Jac Nasser praised incoming CEO Andrew Mackenzie and described the succession positively, while Marius Kloppers said the process had been great. Nasser also said Kloppers leaves BHP a “stronger, safer and better company.”
ASIC issued a permanent stop order on the proposed Iatia listing and has not yet provided formal reasons. The article notes ASIC has been giving extra scrutiny to Chinese listings and that several passages in Iatia’s prospectus raised concerns — for example, limited land rights, unusual ownership structures for the education business, and financing questions.
The prospectus listed three projects: a waterfront development in Weihai, Shandong; an inland estate at Langfang (a satellite city of Beijing); and a school next to the Langfang project.
Sponsor broker Novus Capital was to raise up to $8 million from investors. Under the proposal described in the prospectus, those investors would have ended up with about 25% of the company while Xing would have retained roughly 66% via a Vanuatuan vehicle and a complex group structure involving companies in mainland China, Hong Kong and Vanuatu.
The prospectus reportedly showed that Xing had rights to develop less than half the land involved, relied on pre‑sale loans and the group’s resources to acquire the rest, could not directly own the educational business under Chinese law (planning to control it through mainland contracts), and would have needed to find about $10.4 million within two years to buy out partners — all points that raised eyebrows in the review.
Yes. The article also noted Football Federation Australia CEO David Gallop was spotted reading coverage of an AFL ‘tanking’ saga, and it reported that the Greens had to reopen nominations for some federal seats (Gorton, Maribyrnong and Gellibrand) after initially receiving no candidates — items that provide media and political context but not direct investment conclusions.
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