Macquarie Group Ltd
(ASX:MQG) who’s subsidiaries provide banking, financial, investment and funds management services, says it is to acquire specialist investment firm Fox-Pitt Kelton Cochran Caronia Waller, for US$130 million.
The transaction consists of US$130 million in equity value, plus US$16.7 million of long term liabilities less cash on balance sheet at financial close.
President and CEO of Macquarie Capital in the U.S. Tim Bishop says combining the two companies is the ideal way to expand Macquarie’s financial institutions presence beyond the Asia-Pacific into North America and Europe.
The Dow Jones Newswires reports Mr Bishop saying that the current market gives Macquarie an opportunity to build its business across the Americas, and it will continue to do that.
Fox-Pitt’s George Cochran and Len Coronia will become chairmen of Macquarie Capital’s global financial institutions advisory business.
President John Waller will co-head Macquarie’s global financial institutions advisory business alongside Macquarie executive director Andrew Low.
Macquarie recently acquired energy advisory company Tristone Capital Global, Constellation Energy’s Houston-based downstream natural gas trading operations, and funds manager Delaware Management Holdings. Macquarie Group’s 2009 net profit more than halved from the year before.
Airport owner Macquarie Airports (ASX:MAP) has announced that it will go ahead with a one for 11 non-renounceable pro-rata entitlement offer, announced on August 28 2009.
The decision follows the approval of its proposal to internalise management at its meeting with shareholders yesterday.
The offer will give eligible shareholders the opportunity to apply for one Macquarie Airports share for every 11 existing shares in the company held, at a price of $2.30 a security.
Macquarie Airports says the new securities will rank equally with existing Macquarie Airport securities on offer and will be entitled to any future distributions declared by the company, including the final full year 2009 dividend. Macquarie Airports 2008 net profit was $2.07 billion.
Budget airline Virgin Blue Holdings Ltd (ASX:VBA) says for the month of August the airline carried over 15 million passengers across its total network, an increase of 1.6 per cent.
The airline says the number of domestic travelers decreased 2.7 per cent for the month over the previous year.
However the airline saw a 41.5 per cent increase in the number of international passengers in August compared to a year ago.
Despite this rise in international passengers travelling Virgin Blue says its revenue load factor, a measure of profitability, fell 1.2 points from the year before to 77.8 per cent.
Virgin Blue says on time performance lifted 5.9 points to 85.3 per cent for the month, compared to 79.4 per cent the year before.
For the year to August the airline says domestic passengers are down 5.6 per cent with international numbers so far up 47.1 per cent from the previous year. Virgin Blue reported a $160 million loss in 2009.
Rural and regional services business Elders Ltd (ASX:ELD) says it has entered into binding agreements with its banks and U.S. private placement note holders.
Elders says its financiers have agreed to refinance the company’s corporate debt and note facilities.
The company says the new debt and note facilities will comprise of a revolving working capital facility and ancillary facilities, and term debt and note tranches with maturities of 2012 and later.
Elders says the completion of the debt refinancing, the equity raising and the announced asset sales will represent the culmination of a comprehensive restructuring and repositioning of the business.
CEO Malcolm Jackman says the combination of the debt refinancing and the equity recapitalisation that will follow a successful shareholder vote next month, will remove the uncertainty which has weighed on the business over the last 12 months, and secure the future of the company.
