Media giant News Corp
(ASX:NWS) has reportedly decided not to invest further in online real estate company REA Group Ltd
(ASX:REA) after being offered some of the 13.5 million shares sold by CCZ Stratton Equities on behalf of Sam White, deputy chairman of Ray White Group.
According to the Australian Financial Review, News Corp’s local arm News Ltd wanted to acquire some of the shares on offer to increase News Corp’s 60.7 per cent stake in REA Group, however News Corp execs are understood to have rejected the idea.
The paper says News Corp could have used the creep provision of takeover law to boost its stake to 63.7 per cent, costing the company around $22 million.
In 2005 News Corp made a takeover bid for REA Group but was unsuccessful, and has since used the creep provision to lift its stake in the company.
CCZ Stratton Equities placed the REA shares at an offer price of $5.75 a share with local institutions. News Corp’s profits have been increasing year on year over the past four years.
Health fund nib holdings Ltd (ASX:NHF) has announced a policyholder growth rate of 5.7 per cent or 18,899 net new policies for the period ending June 30 2009.
The company’s previous guidance was a policyholder growth rate slightly better than 4 per cent.
Managing director Mark Fitzgibbon says despite the result the company’s pre-tax underwriting result for the full year is still expected to be in the range of $35 million to $40 million.
The company says it has seen a jump in the number of policy sales in the past few weeks, however due to this growth being in the latter stages of the financial year, it is not expected to materially impact its revenue and earnings for the 2009 fiscal year.
Mr Fitzgibbon says despite the higher than forecast policyholder growth rate, economic conditions will continue to pose a challenge in fiscal year 2010. nib holdings 2008 net profit fell significantly from its result in 2007.
Health care provider Primary Health Care Ltd (ASX:PRY) has appointed Robert Ferguson as non-executive chairman of the company.
Mr Ferguson was formally CEO and chairman of Bankers Trust Australia and has served on the boards of Vodafone Australia and Westfield Holdings.
Mr Ferguson is currently chairman of IMF, Tyro, deputy chairman of GPT Management Holdings, deputy chairman of the Sydney Institute, and a director of the Lowy Institute. Primary Health Care’s 2008 net profit took a big tumble from its high in 2007 of $56.9 million.
