Latest news with #JesseMoors
Time of India
10-05-2025
- Business
- Time of India
CoStar to buy Australia's Domain in $1.9 billion deal
BENGALURU: U.S. real estate firm CoStar will acquire Domain for A$3 billion ($1.92 billion) including debt, the Australian property listings platform said on Friday, in a bid to create a well-capitalised rival to News Corp 's REA. After weeks of due diligence by CoStar, which owns a 16.9% stake in Domain, the companies have agreed on the U.S. firm's A$4.43 apiece offer. Domain shares gained as much as 5.2% to A$4.47 and were set for their biggest single-day rise in nearly a month. Media firm Nine Entertainment, Domain's largest shareholder, has expressed its support of the deal and would be receiving A$1.4 billion for its 60.1% stake. Nine shares jumped as much as 8.1% to A$1.61. CoStar acquired a 16.9% stake in Domain on February 21, ahead of an initial takeover offer of A$4.20 apiece, which was subsequently raised. The acquisition would be put to a shareholder vote in mid-August. Spatium Capital portfolio manager Jesse Moors said he would be watching how Australia's Foreign Investment Review Board considers the sovereignty risk with the Australian public's residential housing data being owned by an American real estate firm. Nine, which owns popular newspapers such as The Age and Australian Financial Review, has failed to match Domain with the success that News Corp-controlled rival REA has enjoyed. REA's market value reached A$33.16 billion, after jumping more than 160% since 2020. Domain is currently valued at A$2.69 billion. Shares in REA fell up to 4.2% and were set for their biggest one-day loss since early April. "We do not expect a material impact on REA's position over the next 1-3 years, especially given REA's product execution and expect marketing schedules to initially expand if CoStar is successful in growing Domain's audience," said Citi analysts. CoStar, originally an information and analytics provider for commercial real estate, has in recent years shifted focus toward building a dominant presence in online property marketplaces.
Reuters
19-03-2025
- Business
- Reuters
Australia's Myer's profit slumps; shares tank on bleak outlook
March 19 (Reuters) - Australian department store owner Myer ( opens new tab on Wednesday posted lower interim earnings, citing logistical challenges at a distribution centre in Victoria and strategic review costs, while painting a gloomy outlook due to weak economic conditions. The firm, which finalised the purchase of the apparel brands portfolio from rival Premier Investments ( opens new tab in January, said the sales for the first five weeks in the second half of the fiscal year were already down by 2.6%. Shares in Sydney dropped 10.5% to A$0.68 and hit their lowest since June 24, 2024. Total sales at the retailer were A$1.83 billion ($1.16 billion), with comparable sales up just a touch below 1%. This reflects the closure of Brisbane and Werribee stores coupled with other closures. The retailer posted net profit after tax of A$42.4 million for the 26 weeks ended January 25, an 18.5% decrease from the previous year. "Distribution centre issues certainly didn't help matters either, but for Myer's profit to start looking healthier next time around the company will be hoping for brighter retail conditions to emerge," said Tim Waterer, an analyst at KCM Trade. The results come after Myer's January warnings of sluggish sales and earnings during the major festive periods of Black Friday, Christmas and Boxing Day. A measure of Australian business activity dropped to its lowest since the pandemic last November due to tough trading conditions in both manufacturing and retail sectors, suggesting the local economy had not picked up from a time when households struggled with rising costs of living. Myer had updated the market regarding the construction of a national distribution centre in Victoria during 2021, which went live in August 2024. "The site has experienced implementation issues and is not yet operating as designed," the firm flagged. "If I was a shareholder, I'd be demanding more clarity as to what constitutes 'operational issues' given (if the matter is warehousing, technology, system or infrastructure)," said Jesse Moors, portfolio manager at Spatium Capital.
Reuters
20-02-2025
- Business
- Reuters
Australia regional carrier Rex begins sale process as Labor considers buyout
Feb 20 (Reuters) - Australia's Regional Express ( opens new tab on Thursday said its administrators had begun a sale process for the collapsed airline, over a week after the Labor government indicated it could buy out the company if a private owner does not emerge. Regional Express Holdings (Rex) went into voluntary administration in July 2024, resulting in hundreds of job losses and the suspension of its Boeing 737 (BA.N), opens new tab flights between Australia's major cities. The airline continues to serve rural areas with smaller turboprop planes. The Australian airline sector has been under pressure in recent years because of increased competition and price wars, and Rex joined Virgin Australia and startup Bonza as the third Australian airline to have entered voluntary administration since 2020. "We'd suspect that REX would not be in this position of Administration if there was a more competitive airfare landscape to begin with, notwithstanding the current pricing environment has been artificially created by our elected officials," said Jesse Moors, portfolio manager at Spatium Capital. Rex currently owes A$500 million ($320 million) to 4,800 creditors after struggling to compete with Qantas ( opens new tab and Virgin Australia ( opens new tab, which together dominate about 98% of the domestic market. Last week, the federal government suggested, opens new tab that if Rex failed to secure a successful sale, the Commonwealth may step in to acquire the airline. That could lead to taxpayers footing a bill of hundreds of millions of dollars to replace Rex's aging 40-year-old fleet. The government buying Rex would mark the first time the state has owned an airline since Qantas was privatized in 1993. "Especially given the criticism Qantas, in particular, has faced recently for price gouging and not refunding Australians, purchasing Rex might create a public conversation about re-nationalising Qantas after its many public failures of late," Moors said. The government in January said it would buy A$50 million of debt from the company's largest creditor, Asian private equity house PAG Asia Capital, to have more control during the voluntary administration process. ($1 = 1.5780 Australian dollars)
Reuters
17-02-2025
- Business
- Reuters
Star gets potential lifeline as Oaktree offers refinancing; shares rally
Feb 17 (Reuters) - Star Entertainment ( opens new tab announced on Monday that U.S.-based Oaktree ( had offered to refinance A$650 million ($413.40 million) of its debt in what could be a major lifeline for the cash-strapped firm. Shares in the Australian casino operator jumped 8.3% to A$0.13 in Sydney following the announcement. The company's shares plummeted more than 63% in 2024. Oaktree Capital Management's offer was first reported by the Australian Financial Review, which said the asset management firm had approached Star's lender syndicate including Westpac, Barclays and Washington H Soul Pattinson along with other investors, offering to acquire their debt at a discount. Star said it was considering the offer but provided no assurances the proposal would be accepted. If the proposal is accepted, it would result in the dilution of the shareholding of the casino operator's investors and make Oaktree a significant investor in the future. Oaktree was not immediately available for comment outside of business hours. Star has been urgently seeking to raise capital after expressing doubts last month about its viability due to a cash crunch. The company needs to raise A$150 million in subordinated debt to proceed with further A$100 million borrowings. The heavily-indebted gaming firm has been struggling amidst a crisis affecting Australian casino operators for years, with Star and larger rival Crown Resorts, owned by Blackstone (BX.N), opens new tab, facing multiple regulatory inquiries, decreased tourist visits and long closures. The firm has repeatedly warned investors that conditions remain challenging for the company to continue operating. "We would caution a significant rise in the Star's share price given that its currently very public dirty laundry would likely be a considerable liability for whomever purchases control of the group," said Jesse Moors, portfolio manager at Spatium Capital. "Oaktree will likely be cognisant and aggressive in their negotiation of this; which may dilute current or new shareholders in Star." Star said several conditions must be met for Oaktree's offer to proceed, including a "comprehensive" security package, approvals from governments and regulators in New South Wales and Queensland, completion of due diligence and existing creditors entering a settlement and/or refinancing agreement on terms satisfactory to Oaktree. ($1 = 1.5723 Australian dollars)
Reuters
06-02-2025
- Business
- Reuters
Australia's Insignia gains third suitor as Brookfield matches offers of $1.9 billion
Feb 5 (Reuters) - Insignia Financial ( opens new tab said on Wednesday that Brookfield ( opens new tab has thrown its hat into the ring for the Australian money manager, offering to match bids of A$3 billion ($1.9 billion) from Bain Capital and CC Capital Partners. Insignia shares surged as much as 7.6% to a three-year high of A$4.65, slightly higher than the A$4.60 price all three suitors have offered. The offer from New York-headquartered, Toronto-listed Brookfield also allows for Insignia investors to take equity in its unlisted bid vehicle if they prefer. Insignia, formerly known as IOOF, managed some A$327 billion in client money as of December and is the third-largest player in Australia's superannuation sector. It has granted Brookfield limited access to its books as it has done with the two other bidders. Australia's publicly traded wealth management firms are drawing interest from investors attracted to the country's thriving pension system. Insignia is regarded as a prime target as its operations encompass both funds management and advisory services. "With access to the A$4.1 trillion superannuation system in Australia, we can see why Brookfield are the latest entrant in the race for the Insignia takeover and possible privatisation," said Jesse Moors, portfolio manager at Spatium Capital. Bain first bid for Insignia on Dec. 13, when the money manager had a market value of A$2.2 billion. Insignia rejected that offer, after which CC Capital made a proposal and a bidding war ensued. While interest in Australian fund managers has been high, closing deals has been difficult. KKR (KKR.N), opens new tab had planned to buy Australian fund manager Perpeptual's ( opens new tab management and corporate trust businesses for A$2.2 billion but that deal is now in doubt after the company received a much higher-than-expected tax bill. Regal Partners ( opens new tab made an offer for Platinum Asset Management in September, but the buyout talks failed. Separately, Brookfield has previously sought to take power retailer Origin Energy ( opens new tab private for $10.6 billion but the deal was rejected by shareholders. Bain bought out carrier Virgin Australia during the peak of the COVID-19 pandemic. ($1 = 1.5995 Australian dollars)
