Rural and regional services company Elders Ltd
(ASX:ELD) has announced the sale of its insurance arm to QBE Insurance Group Ltd
(ASX:QBE) for $315 million.
Under the deal QBE will acquire 100 per cent of Elders Insurance and 75 per cent of its agency operation.
Elders Insurance and Elders Insurance Agency are expected to generate around $500 million in gross premiums in 2010, $400 million of which will be additional premium for QBE.
QBE will also subscribe for 112.5 million Elders shares at 40 cents a share, taking QBE’s holding in Elders to 12.5 per cent.
Elders says the deal is in keeping with the company’s refinance and recapitalisation program and will significantly help strengthen its balance sheet. QBE Insurance Group’s 2008 net profit dipped slightly from the year before.
Avoca Resources Ltd (ASX:AVO) may have some stiff competition in its bid for Dioro Exploration NL (ASX:DIO) after Ramelius Resources Ltd (ASX:RMS) made a last minute bid for the gold producer late yesterday.
Ramelius’ 2 for 1 scrip offer values Dioro at $1 a share or a total $92 million.
This compares to Avoca’s revised offer of one of its shares for every 2.3 Dioro shares, valuing Dioro at 71 cents a share.
Dioro had recommended Avoca’s revised offer in the absence of a superior one, however the company now says the Ramelius offer may be superior to Avoca’s amended offer.
Ramelius owns the Wattle Dam goldmine and the Burbanks treatment plant, close to Dioro’s open cut operations and Jubilee treatment plant.
Dioro has advised shareholders take no action in relation to the Avoca amended offer until the company has assessed the Ramelius offer compared to the Avoca amended offer. Dioro Exploration has posted net losses in the last three years, and looking back over the past five years Avoca Resources has recorded net losses.
Uranium miner Energy Resources of Australia Ltd (ASX:ERA) has reported record net profit after tax and underlying earnings for the half year to June 30.
Net profit after tax came to $127.6 million for the six moths, compared to $38.9 million recorded for the same period in 2008, and compared with the company’s record full year underlying earnings in 2008 of $119 million.
Revenue rose to a record $347 million for the half year, compared to $167.4 million for the six months to June 2008.
The company says sales also increased for the period to 2,280 tonnes, up from 1,746 tonnes for the same period the year before.
Uranium oxide production for the June 2009 half rose 14 per cent to 2,695 tonnes, with a total 10 million tonnes of raw material mined in the six months, 14 per cent higher than the June 2008 half year.
Energy Resources of Australia says full year production is expected to be in line with normal levels, while total sales tonnes in 2009 are still expected to be slightly higher than in 2008, with sales volumes higher in the second half. Energy Resources of Australia’s 2008 net profit was its best in five years.
