| GPT | The GPT Group confirms it has made an indicative and non-binding proposal to Australand Property Group (Australand) in relation to the potential acquisition of its investment property portfolio and commercial and industrial business for cash. The proposal does not include the residential assets and business of the company. | Company report |
| ALZ | The GPT Group confirms it has made an indicative and non-binding proposal to Australand Property Group (Australand) in relation to the potential acquisition of its investment property portfolio and commercial and industrial business for cash. The proposal does not include the residential assets and business of the company. | Company report |
| GNC | The attempt by United States grain company Archer Daniels Midland to acquire Australian grain and related commodities storage and logistics specialist GrainCorp is likely to be delayed by the Chinese Ministry of Commerce as GrainCorp possesses an edible oils facility in China. | The Australian |
| China | Chinese November YoY CPI is 2.0%; Prior result was +1.7%, Mkt expected +2.1% | Market Watch |
| China | China YoY PPI is -2.2%; Prior result was -2.8%, Mkt expected -2.0% | Market Watch |
| TXN | Hoskins #4H, the eighth Texon Eagle Ford well commenced drilling operations on 6 December 2012. The Hoskins #4H well, a lease obligation well is planned for a lateral length of 7420 ft. at a measured depth of 18,800 ft, at a true vertical depth of 11,340 ft. Fraccing operations are planned to begin in late January 2013 pending crew and equipment availability. Hoskins #3H and the Quintanilla SM EF #1H (sixth and seventh Eagle Ford wells) have been cased for completion operations and are planned to be fracture stimulated commencing 17 December 2012. Production facilities and pipeline connections for these wells will be completed in the next several weeks prior to flow back and production testing of the wells anticipated in January/February 2013. | Company report |
| CDD | Cardno announced the acquisition of ChemRisk, a 95-person human health & environmental risk consulting firm headquartered in San Francisco, California, USA. The acquisition is expected to contribute approximately US$20 million in revenue and US$6 million in EBITDA over the next twelve months. The acquisition will be earnings per share accretive in FY2013 and have an effective date of 1 December, 2012. Cardno will pay up to US$33m for the purchase of ChemRisk, including an earn-out and deferred payment. Around eleven percent (11%) of the purchase price is subject to the achievement of performance targets over the next 12 months, with an additional nine percent (9%) of the purchase price deferred for 18 months. | Company report |
| SLR | Silver Lake has signed an agreement with National Australia Bank for $75 million in banking facilities. | Company report |
| TOX | Tox Free Solutions has completed the acquisition of Absolute based in Toowoomba, Queensland. The purchase price for the Absolute business is $4.9M. Absolute is on track to achieve Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of $1.3M and is experiencing significant growth in the CSG sector west of Toowoomba. The value of Absolute’s assets is $2.5M which are included in the sale price. | Company report |
| SGP | Stockland has agreed to sell 118-120 Pacific Highway in St Leonards, Sydney to an investor for $24.2 million, which is above the 30 June 2012 book value. The Clemenger Building is a 5,130sqm building with 151 basement car spaces. The building has a 4 Star NABERS rating. Clemenger is the major tenant in the building, which was purchased by Stockland in 2000. | Company report |
| AGO | Atlas Iron has completed the USD$325 million financing package, ensuring Atlas remains firmly on track to meet its Pilbara iron ore production target of 12mtpa by December, 2013. In light of the significant improvement in iron ore markets during the December 2012 Quarter, Atlas has elected to improve the structure of the debt package from that proposed in its ASX release of 18 October 2012. Atlas has now completed a US institutional Term Loan B offering to USD$275m, down from USD$325m. Atlas has also put in place an undrawn AUD$50 million three-year “covenant lite” revolving facility. Importantly, both the Term Loan and Revolver terms contain no earnings based maintenance covenants. The decision to adopt a lower Term Loan and undrawn Revolver reduces the amount of loan drawn down, lowering Atlas’ overall cost of funding. The completion of this financing package delivers the Company sufficient funds to complete the development of the Mt Dove, Abydos and Mt Webber mines, and the Yard 2 expansion works at Utah Point at Port Hedland. | Company report |
| SPN | SP AusNet is pleased to announce it has successfully executed an A$100 million 5 year bank debt facility. The proceeds will be used to refinance existing debt and to fund growth capital expenditure. SP AusNet maintains a well diversified debt maturity profile together with well diversified sources of debt. This, together with a strong investment grade credit rating (Standard & Poor’s ‘A-‘, Moody’s Investors Service ‘A1’), allows SP AusNet ready access to debt markets both in Australia a | Company report |
| China | China Exports +2.9% y/y vs +9.0% exp, Imports flat vs +2.0% exp, Trade surplus $19.63B vs $26.85 exp | Market Watch |
| Fe | China imported 670 million metric tons of iron ore in the January-to-November period, up 8.2% compared to a year earlier, the General Administration of Customs said | Market Watch |
| US | November Non Farm Payrolls rose by +146k versus +85k expected, while the unemployment rate declined by 0.2% to 7.7%. However, the employment to population ratio fell from 58.8% to 58.7%. | Citi |
| US | Michigan consumer confidence dropped from 82.7 to 74.5, which is the largest drop since the debt ceiling crisis in mid-2011. | Citi |
| EU | The Bundesbank has warned that Germany may be entering recession, saying that the economy could contract in FQ4 and FQ1. The bank also cut its 2012 and 2013 GDP predictions to +0.7% and +0.4% respectively from prior forecasts of 1% and 1.6%. In addition, it lifted its 2013 unemployment outlook to 7.2% vs 6.8% this year, but said the labor market “will come through the economic slowdown in good shape.” | Seeking Alpha |
| EU | German industrial production showed a sizable decline of 2.6% versus 0.0% expected. | Citi |
| BCI | BC Iron has signed agreements with its joint venture partner, Fortescue Metals, to acquire an additional 25% interest in the Nullagine Iron Ore Joint Venture (NJV).BC Iron and Fortescue have executed binding documentation to give effect to the following: BC Iron will increase its participating interest in the NJV from 50% to 75%; The capacity available to the NJV on Fortescue’s rail and port infrastructure shall be formally increased to 6 Mtpa for the life of the NJV; BC Iron’s share of annual production will increase by 80% from 2.5 Mtpa to 4.5 Mtpa; BC Iron shall make a once-off prepayment of rail haulage and port charges for 3.5 Mt (wet) of its share of production from the NJV; BC Iron’s obligation to deliver product into its existing offtake agreement will remain unchanged; and Fortescue and BC Iron will continue to explore other opportunities in the East Pilbara Region. The total consideration payable by BC Iron to Fortescue (including the Rail and Port Prepayment) has been agreed at A$190m, plus a price participation arrangement payable to Fortescue in certain iron price conditions (described further below). The total consideration, plus associated Transaction costs, will be funded using a combination of existing cash, a new US$130m debt facility, and approximately A$56m in equity through an underwritten placement and SPP. | Company report |
| US | Russia has threatened that a new U.S. law which seeks to punish human rights violators will “adversely affect the prospects of bilateral cooperation” between the two powers. The Senate passed the measure yesterday as part of a bill that grants Russia “permanent normal trade relations” by lifting Cold War-era restrictions. The bill will now go to President Obama for his signature | Seeking Alpha |
| WRT | WRT and WDC, which each have a 50% interest in Westfield Pakuranga, have sold the centre to Ladstone Pakuranga Limited for NZ$81.7 million, of which the Trust’s share is NZ$40.85 million equal to the valuation in the Trust’s 30 June 2012 financial statements | Company report |
| US | U.S. consumers increased their debt in October by a seasonally adjusted $14.2 billion, the third straight strong gain, the Federal Reserve reported. The increase in October was above the $12 billion gain expected by Wall Street economists. An upward revision to September – to a $12.2 billion increase from an initial estimate of $11.4 billion – added to the sense of stronger credit growth | WSJ |
| US | The Labor Department’s latest snapshot of the job market said employers added 146,000 jobs last month. That is an improvement from the previous two months, but below the average job growth per month of about 150,000 over the past two years. Payroll growth in September and October also was revised down by about 50,000 jobs. November’s data easily beat economists’ expectations, but the good news was tempered somewhat by downward revisions to payroll figures from September and October. | WSJ |
| Aust | Australian Prime Minister Julia Gillard says she can pull off Mission Impossible. Australians should be worried. Ms. Gillard is sticking fast to an election pledge to return the budget to surplus even though economic data is increasingly stacked against her. The country’s trade deficit blew out to $2.1 billion Australian dollars (US$2.2 billion) in October, the widest since March 2008. Australia’s economic growth is outstripping most of the developed world. It grew 3.1% year-on-year in the third quarter. But company profits are falling—down 13% in the third quarter compared to a year ago. That’s eating into tax revenues. The central bank is doing its part, slashing interest rates by a cumulative 1.25% over the past year or so to a record low 3%. But the impact has been minimal—Australia’s dollar is still sky-high. | WSJ |
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