Posts Tagged ‘acquisition’

  • ASX Company News: Challenger Diversified Property Acquires 31 Queen St in Melbourne

    Tuesday, March 1st, 2011Jeff

    Challenger Diversified Property Group (CDI) announced it has contracted to acquire a Melbourne A-grade CBD office building located at 31 Queen St Melbourne for $81.0 million (excluding stamp duty and other transactions costs).

    CDI Fund Manager Trevor Hardie commented: “With an equivalent yield of 8.17%, the acquisition of 31 Queen St represents a major step in our portfolio enhancement strategy aimed at improving the quality of CDI’s cash flow. The acquisition follows on from the successful sale of four properties since mid-2010 at an average sale price premium above valuation of 11%1. “This acquisition will enhance the quality of CDI’s portfolio by providing Melbourne CBD exposure, lifting asset quality, and supporting diversification of income with reduced reliance on single-tenanted occupancies.”

    31 Queen St is located on the corner of Flinders Lane within the financial precinct of the Melbourne CBD, specifically in the Western Core section. With 27 levels comprising office, ground floor retail and five levels of parking for 172 cars, 31 Queen St was built in 1976 with $13.7 million spent over the past four years on building upgrades. Covering a net lettable area of 19,213 sqm, the building is tenanted by seventeen organisations including Oxiana Limited, Defence Credit Union, Hyder Consulting, and Gabstaff.

    CDI provides investors with exposure to a diversified portfolio of quality, well located properties which offer stable income returns and potential for capital growth. With total assets of $781 million at 31 December 2010, CDI holds investment interests in 29 office, industrial and retail properties located in Australia and France. In addition, CDI holds a cumulative 25 year leasehold interest in Sydney’s Domain car park.

    www.challenger.com.au/cdi

    http://www.traderdealer.com.au/Fundamentals/cdi

    ASX Company News: Linc Energy Acquires New US Oil Fields

    Monday, February 28th, 2011Jeff

    Linc Energy Ltd (LNC) is pleased to announce that its wholly owned subsidiary, Linc Energy Petroleum (Wyoming) Inc., has acquired three producing oil fields (approximately 27,856 acres) from Rancher Energy Corp., securing immediate oil production and a significant CO2 enhanced oil recovery (EOR) opportunity. The three oil fields have been acquired from Rancher Energy Corp., a Nevada corporation currently in Chapter 11 bankruptcy, for a total consideration of US$20 million. The fields, located 15 miles east of Casper, Wyoming, have combined production of 146.6 million barrels of oil to date from an estimated Original Oil in Place (OOIP) of 466.6 million barrels of oil.

    The purchase price of the assets is US$20 million (less adjustments). The assets purchased consist primarily of oil & gas leases, property interests (including all overriding royalty interests held by Rancher Energy) and wells upon the Big Muddy, South Glenrock and South Cole Creek oil fields located in Converse County and Natrone County, Wyoming. The total area of these leases is approximately 27,856 acres. Linc Energy holds significant coal leases in the Powder River Basin and is currently permitting its first underground coal gasification (UCG) operation in that region, with the first gasification operations expected to commence later this year (2011). The acquisition of the Rancher Energy oil fields is the first strategic acquisition by the Linc Energy of producing North American petroleum assets which deliver immediate revenue whilst also providing an entry point into the established EOR market utilizing the valuable CO2 stream produced from UCG operations and other CO2 sources.

    Peter Bond, CEO of Linc Energy, said, “We recognized some time ago that significant value could be delivered to our shareholders if we combined UCG operations with Enhanced Oil Recovery from depleted oil fields using CO2 flooding. We have been diligently working on assessing UCG and EOR opportunities in the USA for over 12 months and announced our intentions to enter this market at the end of 2010. The Rancher Energy deal represents the first step in this process and is a milestone for our expanding North American oil operations.”

    Linc Energy is an innovative, forward-thinking company developing a significant energy business based on the production of cleaner energy solutions. Linc Energy has successfully combined two known technologies, Underground Coal Gasification (UCG) and Gas to Liquids (GTL) and has demonstrated its vision of being a leading supplier of a new source of cleaner liquid transport fuels for the future. Linc Energy represents a new future for liquid fuels production and high efficiency energy generation.

    www.lincenergy.com.au

    http://www.traderdealer.com.au/Fundamentals/lnc

    ASX Company News: Resource Equipment Acquires Dewatering Services Australia

    Friday, February 25th, 2011Jeff

    As foreshadowed in the ASX release of 22 December 2010, Resource Equipment Limited (RQL) is pleased to announce the acquisition of Dewatering Services Australia Pty Ltd and DSA Plant Co Pty Ltd, collectively referred to as “DSA”. Completion of the acquisition is expected to occur within the next two business days, subject to REL shareholders ratifying the recent placement of 18,367,347 shares at the Shareholder meeting to be held on 25 February 2011.

    DSA is a specialist contracting business which designs, installs, tests and commissions HDPE pipelines (commonly referred to as polythene pipe) and retails associated products. The business was founded in Kalgoorlie in 2003 and has a strong presence throughout the Goldfields, with operations expanding into the North-West in recent years. It is highly systemized and uses a range of specialist equipment to deliver a turnkey service to its clients. REL has an established working relationship with DSA, utilising DSA’s services on projects where HDPE pipeline installation is required.

    With an expanding national profile, REL Chief Executive Officer, Mr James Cullen, said that the acquisition of DSA was a well timed opportunity for the Company to increase its service offering to clients through this vertical integration strategy. “There are several compelling reasons for the Parties to proceed with this transaction” he said. “Firstly, DSA has a well established customer base to whom REL can now offer its services; secondly, REL will offer DSA’s specialist pipeline installation services to its customers and expand the DSA business outside of Western Australia to REL’s East Coast operations; and thirdly, as the installation of HDPE pipeline infrastructure on mine sites is generally performed well before the selection of pumping equipment, DSA’s services will facilitate an earlier introduction of REL’s pumping system solutions than is presently being achieved.”

    The purchase price for DSA is comprised of an initial component, a deferred component and a contingent component, all on the basis of 60% shares and 40% cash as follows: $7m initial component payable at settlement, comprising: the issue of 10,646,651 shares at 43 cents (the Company’s share price when price negotiations were finalised), with half of the shares subject to six months voluntary escrow and half subject to twelve months voluntary escrow; and the payment of $2,385,373 cash; $1.5m deferred component payable on finalisation of the 30 June 2011 accounts and subject to the 30 June 2011 EBITDA exceeding the 2010 EBITDA (of $3,088,000), comprising:  the issue of 1,162,790 shares at 43 cents; and the payment of $1,000,000 cash.

    www.rel.com.au

    http://www.traderdealer.com.au/Fundamentals/rql

    ASX Company News: Carbon Energy Acquires USA and UK Clean Coal Companies

    Thursday, February 24th, 2011Jeff

    Carbon Energy Limited (CNX) developer of Australia’s first commercial Underground Coal Gasification (UCG) fuelled power station has executed a Share Sale Agreement to acquire USA-based Clean Coal Inc. and UK-based Clean Coal Amasra Ltd. This transaction delivers projects in the United States of America and Turkey as developed by Clean Coal Ltd. The acquisition has the potential to increase Carbon Energy’s coal resources by almost three fold to in excess of 2 billion tonnes and underpins the Company’s plans to build an international portfolio of UCG projects.

    Carbon Energy will acquire two companies holding rights to projects in Wyoming (USA), North Dakota/Montana (USA) and Amasra (Turkey). Consideration of US$10 million of shares (based on 60 day VWAP) will be issued within the Company’s 15% share issue capacity (ASX Listing Rule 7.1). Two further tranches of US$4.5 million of shares each (based on 30 day VWAP at time of milestone achievement) will be issued subject to meeting key development milestones including the delineation of JORC complaint coal resources in excess of 500Mt at two of the three locations.

    Mr Dash commented, “This acquisition is consistent with our growth strategy and will establish the Company in our target markets of North America and Europe. In addition, the commercial partners we will have as a consequence of this acquisition are each major players in their respective markets. Their ability to bring considerable strategic benefits to this transaction will provide Carbon Energy with opportunities for early project success. We have been developing a suite of products from “syngas”, a mixture of hydrogen, methane and carbon monoxide produced in the UCG process. These downstream uses for syngas include low emission power generation, synthetic natural gas production and chemical manufacture, such as ammonia. We believe that each of these products will play an important role in the US and European markets.

    Carbon Energy’s purpose is to produce cleaner energy and chemical feedstock from Underground Coal Gasification (UCG) syngas. Carbon Energy’s unique approach to UCG and syngas production increases the efficiency of capturing carbon dioxide, giving the Company a leading edge in clean coal technology. Carbon Energy’s technological advantage comes from its association with Australia’s premier research agency, CSIRO, including world-class geotechnical, hydrological and gasification modelling capabilities. Carbon Energy is building an international portfolio of coal assets suitable for UCG and accessible to high-value markets.

    www.carbonenergy.com.au

    http://www.traderdealer.com.au/Fundamentals/cnx

    ASX Company News: Seven Group Holdings Sells Seven Network to West Australian News

    Tuesday, February 22nd, 2011Jeff

    Seven Group Holdings Limited (SVW) announced that it has reached an agreement with West Australian Newspapers Holdings Limited (WAN), to create Seven West Media (SWM). Seven West Media will be Australia’s largest diversified media business. The proposed transaction would result in a media company with a leading presence in broadcast television, radio, newspaper publishing, magazine publishing and online. Seven West Media will be formed by WAN acquiring 100% of SMG from SGH, for an Enterprise Value of approximately $4.1 billion (the Proposed Transaction). Upon implementation of the Proposed Transaction, SGH will hold a 29.6% stake in SWM and $250 million of SWM Convertible Preference Shares.

    SGH Group Chief Executive Mr. Peter Gammell today welcomed the announcement. “A year ago we announced the merger of Seven Network and WesTrac Group to create Seven Group Holdings. This transaction to create SGH has delivered considerable shareholder value,” Mr. Gammell said. “Today represents a logical next step. As a result of the transaction, Seven Group Holdings will be the largest shareholder in Seven West Media which will comprise two iconic Australian media assets, namely: Seven Network and the West Australian.” The Executive Chairman of Seven Group Holdings, Mr. Kerry Stokes, said: “The media landscape is evolving rapidly. Today’s announcement provides a significant opportunity for shareholders to participate in this expanding sector.

    Under the terms of the Proposed Transaction, SGH, which owns 45% of SMG, will initially buy out the interest of its joint venture partner, KKR, as well as the interests of management and mezzanine investors. WAN will subsequently acquire 100% of SMG from SGH, for an Enterprise Value of approximately $4.1 billion.

    www.sevengroup.com.au

    www.thewestaustralian.com.au

    http://www.traderdealer.com.au/Fundamentals/svw

    http://www.traderdealer.com.au/Fundamentals/wan

    ASX Company News: Bunnings Warehouse Property Trust Buys 13 New Properties

    Friday, February 18th, 2011Jeff

    The Directors of Bunnings Property Management Limited, the Responsible Entity of Bunnings Warehouse Property Trust (BWP or the Trust), announces that the Trust has agreed to acquire from a wholly owned subsidiary of Bunnings Group Limited, a portfolio of 10 operational Bunnings Warehouses and three properties on which BGL will develop Bunnings Warehouses (Portfolio Acquisition). The acquisition price of $241.7 million represents the total amount payable to BGL assuming the completion of the Bunnings Warehouses to be developed by BGL.

    Mr Grant Gernhoefer, General Manager of Bunnings Property Management Limited, said: “The  Portfolio Acquisition adds substantially to the Trust’s existing portfolio and is expected to provide unitholders with a secure, growing income stream and long-term capital growth, consistent with the Trust’s objectives. The fully underwritten Entitlement Offer to part fund the Portfolio Acquisition will ensure BWP maintains its conservatively geared balance sheet to provide financial flexibility for funding further acquisition opportunities.”

    www.bwptrust.com.au

    http://www.traderdealer.com.au/Fundamentals/bwp

    ASX Company News: Aspen Group Acquires ATO Building In Adelaide

    Thursday, February 17th, 2011Jeff

    Australian ASX listed property investment and funds management company Aspen Group (APZ) is pleased to announce it has entered into an agreement, which is subject to finance, for the acquisition of the Australian Taxation Office Building (“ATO Building”), within the Central Business District of Adelaide, South Australia.

    The ATO Building (previously referred to as “Tower 8”) is a major office tower development of approximately 36,700 sqm of net lettable area. It forms part of Aspen Development Fund No.1’s (ADF) impressive Adelaide City Central precinct. ADF is a development fund of which Aspen Group is fund manager and is the major shareholder.

    The key benefits for Aspen Group in acquiring the tower project are:

    • Ownership of a 100% leased A-grade office building, of which 98.5% is pre-committed to the Australian Tax Office (30,860 sqm) and Australia Post (5,300 sqm), and a weighted average lease expiry (WALE) on the building of 14.4 years
    • Expected starting net operating income of $14.3  million, representing an initial passing yield of 7.8%
    • Expected valuation upside on completion based on blue chip tenants, long term WALE and 5 star Green Star as designed and 4.5 star NABERS ratings
    • Forecast 5 year equity IRR (post practical completion) of 17% pa
    • Substantial increase in the Group’s investment property portfolio WALE from 2.4 yrs to 6.7 years on completion

    Aspen Group Managing Director Mr Gavin Hawkins said, “The ATO Building will be a landmark investment grade asset in the Adelaide CBD with a blue chip tenancy profile and a long term WALE, and represents an excellent acquisition strategically for the Group.”

    The agreement provides for Aspen Group to purchase the land from ADF and fund the construction of the building that will be developed by ADF. The total cost to Aspen Group on completion of the ATO Building is approximately $183.7 million, incorporating holding costs calculated at a rate of 9% pa on funds provided to ADF for the development. The total net cash outlay for Aspen Group is approximately $164 million, of which Aspen has already provided $18 million. The debt component of the total funding requirement is expected to be around $115 million.

    www.aspengroup.com.au

    http://www.traderdealer.com.au/Fundamentals/apz

    ASX Company News: Lindsay Australia To Acquire CLC Produce

    Friday, February 11th, 2011Jeff

    Lindsay Australia (LAU) has entered into a contract to purchase the business and some of the assets of CLC Produce Pty Ltd based in Mareeba on the Atherton Tableland in North Queensland.

    CLC Produce has a turnover of approximately $6.5 million per annum the majority of which is south bound produce freight. The purchase price is $770,000 consisting of $425,000 for Leasehold Land & Buildings and $345,000 for Plant and Machinery (including cold rooms).

    CLC Produce will also be engaged as a consultant for a period of 3 years to assist in marketing, customer transition and expanding the customer base. The fee payable is $ 150,000 per annum.  The acquisition of CLC Produce allows the expansion into a strategically important North Queensland produce growing area.

    www.lindsayaustralia.com.au

    http://www.traderdealer.com.au/Fundamentals/lau

    ASX Company News: Millipede Acquires Cool D’Fine

    Wednesday, February 9th, 2011Jeff

    The Board of Directors of Millepede International Limited (MPD) is pleased to announce that the Company has entered into a non-binding Memorandum of Understanding with Cool D’Fine Pte Ltd. CDF and its group companies are one of the leading providers of marine and offshore heating, ventilation and air -conditioning (HVAC), refrigeration and mechanical ventilation systems in the Asia Pacific region. They are contractors specializing in marine HVAC projects and related product sale for the marine, offshore oil & gas industries.

    The purchase consideration for the Proposed Acquisition based on a willing-buyer-willing-seller basis, shall be an amount equal to approximately A$14 million. The Purchase Consideration shall be satisfied by the issue of that number of post consolidation shares in the capital of the Company to the Vendors that is equal in value to the Purchase Consideration, determined on a pre -consolidated issue price of A$0.008 each which is thereafter consolidated on the same basis that other shares in the capital of the Company are consolidated with shareholder approval, so that they are deemed fully paid at an issue price of at least 20 cents each.

    CDF and its group companies are one of the leading providers of marine and offshore heating, ventilation and air-conditioning (HVAC), refrigeration and mechanical ventilation systems in the Asia Pacific region. They are contractors specializing in marine HAVC projects and related product sale for the marine, offshore oil & gas industries. The company excels in marine HVAC system design, fabrication and installation for a variety of applications (FPSO/FSO conversions, drill barges, drill ships, inland barges, submersible rigs, tugboat and all kinds of ocean going vessel, etc). It performs turnkey solution and handles the entire HVAC system installation, maintenance, repair and conversion. Being the leading HVAC specialist for marine offshore oil and gas industry, CDF has experienced growth in the past 12 years, and has become one of Asia- Pacific’s industry leaders with offices in Singapore, China, Malaysia and Indonesia.

    www.cooldfine.com

    www.millepede.com

    http://www.traderdealer.com.au/Fundamentals/mpd

    ASX Company News: Brambles Acquires Container and Pooling Solutions

    Wednesday, February 9th, 2011Jeff

    Brambles Limited (BXB) is pleased to announce it has acquired Container and Pooling Solutions (CAPS), a USA-based provider of intermediate bulk containers (IBCs) and automotive containers, for US$16.4 million.

    Brambles CEO Tom Gorman said: “This acquisition is consistent with our strategy of growing our pooling business. It will strengthen our IBC and automotive operations in North America and, in the longer term, support our global network and our access to intercontinental product flows. “CAPS is a well-run business, which has experienced compound annual sales revenue growth of 14% over the past six years and has a strong sales pipeline. CAPS’ executive leadership team, which has considerable industry expertise, will remain with the business to drive its next phase of growth, as part of Brambles.” Headquartered in Michigan and founded in 1998, CAPS’ network comprises eight service centres offering sustainable pooling solutions and associated managed services to customers in the automotive and industrial sectors in the USA, Canada and Mexico. CAPS CEO Robert Wiedmaier said: “The CAPS team is delighted to have become part of the global Brambles group. This transaction will give us greater ability to access the considerable growth opportunities that lie ahead and allow us to continue to provide the highest level of service to our customers.”

    Brambles (BXB) is a provider of supply chain and information management solutions through its two primary businesses, CHEP and Recall. Brambles employs more than 12,000 people in 47 countries.

    www.brambles.com

    http://www.traderdealer.com.au/Fundamentals/bxb