Vocus loses 2nd potential takeover, falls 30%: Aus shares 0.2% lower at noon

Market Reports

by Jessica Amir

The local share market dropped at the open and has remained underwater, with the Aussie dollar losing strength and trading around 68.8 US cents. 

Meanwhile, Vocus Group (ASX:VOC) shares have given up all of 2019’s gains, falling 30 per cent after AGL withdrew from its $3.02 billion ($4.85 per share) takeover offer of the telco. It comes after EQT also withdrew its takeover offer to buy VOC for $3.3 billion ($5.25 per share). Meanwhile AGL (ASX:AGL) shares went the other way, gaining 2.2 per cent after scrapping the takeover plans and its shares hit a four-day high.

Looking back to Wall Street. US stocks had a subdued session on Friday, with investors awaiting this week’s Federal Reserve announcements from its 18-19 June meeting, while chipmaker Broadcom also weighted, after posting weaker than expected revenue, also cutting its guidance on weaker demand.

The S&P/ASX 200 index is 14 points lower or 0.2 per cent lower at 6,540. On the futures market the SPI is 12 points lower.

Company news

Financial services company, Fiducian Group (ASX:FID) has inked a deal to buy MyState Limited’s (ASX: MYS) retail financial planning business for $3.5 million. The financial planning client book has over $340 million in funds under advice. The acquisition is expected to be EPS accretive for Fiducian and is planned to completed by the end of the financial year (30 June 2019). This financial year the business has acquired financial planning clients with over $219 million in FUA. Shares in Fiducian Group (ASX:FID) are trading 1.6 per cent higher at $4.88 at noon.

New Zealand manufacturer, Keytone Dairy Corporation (ASX:KTD) announced plans to buy Omniblend for $22.61 million, plus an earn-out of up to $30 million, subject to performance. Omniblend is a manufacturer of powdered health products and UHT drinks, and the business is already set to make $29.7 million in revenue and $2.24 million in EBITDA this 2019 financial year. KTD says the deal will make it a leading player in the health, wellness and the nutraceutical sector. It comes after the company, KTD annouced plans last month to produce Walmart branded products for China. Shares in Keytone Dairy Corporation (ASX:KTD) last traded at $0.53.

IPOs

Listed investment trust, Regal Investment Fund (ASX:RF1) started trading today. It issued shares at $2.50 and started trading on the ASX at $2.50 and is currently trading at $2.48.

Best and worst performers

The best-performing sector is S&P/ASX Utilities, adding 0.3 per cent, followed by S&P/ASX Financials and S&P/ASX Industrials. While the worst performing sector is S&P/ASX Communication Services, shedding 2.5 per cent.

The best performing stock in the S&P/ASX 200 is Emeco Holdings Limited (ASX:EHL), rising 9.4 per cent to $1.93, followed by shares in Nanosonics Limited (ASX:NAN) and Cleanaway Waste Management Limited (ASX:CWY).

The worst performing stock in the S&P/ASX 200 is Vocus Group Limited (ASX:VOC),dropping 30 per cent to $3.05, followed by shares in Mcmillan Shakespeare Limited (ASX:MMS) and Pilbara Minerals Limited (ASX:PLS).

Asian markets

Japan’s Nikkei has added 0.1 per cent, Hong Kong’s Hang Seng has gained 1.3 per cent and the Shanghai Composite has added 0.3 per cent.

Commodities and the dollar

Gold is trading at US$1,341 an ounce.
Iron ore price rose 0.1 per cent to US110.30
Iron ore futures are pointing to a fall of 1.9 per cent.
One Australian dollar is buying 68.83 US cents.