Here are the news headlines from the S&P/ASX 200 (INDEXASX: XJO)(ASX: XJO) on Friday morning. APN Outdoor Group Ltd (ASX: APO) has issued a revised takeover offer for the Adshel businesses owned by HT&E Limited (ASX: HT1).
Here’s the key headline data:
Australian Dollar ($A) (AUDUSD): 73.76 US cents
Dow Jones (DJI): down 0.8%
Oil (WTI): $US65.82 per barrel
Gold: $US1,269 per ounce
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Australian Investing News
Making news in Australia today, fresh from receiving its own takeover offer from JCDecaux, APN Outdoor Group Ltd (ASX: APO) has increased its offer for the Adshel businesses of HT&E (Here, There & Everywhere).
“The acquisition of Adshel would represent an important step in our strategy to expand APN Outdoor, deliver new solutions and ideas to our advertisers and generate long-term, sustainable growth for our shareholders,” APN Outdoor CEO James Warburton said.
The Adshel purchase price will be $540 million, net of debt and cash, which APN Outdoor says represents an operating profit multiple (EBITDA) of 11 times. APN Outdoor plans to fund the deal with $310 million of new shares and new debt of $230 million. The revised offer price is a $40 million increase from the offer proposed in May.
Just yesterday APN announced that it had received a takeover offer from France’s JCDecaux. One of the conditions for the takeover to proceed was that APN did not proceed with the deal to buy Adshel.
Also in the news, jeweller Michael Hill International Ltd (ASX: MHJ) released a presentation detailing its strategic priorities. Following a review of its business, Michael Hill said it will close all Emma & Roe stores and divert all capital into its Michael Hill brand of stores.
“Following a strategic review we have decided that a singular focus on the Michael Hill brand will best position us to deliver a stronger customer proposition and financial results,” CEO Phil Taylor said. The cost to close the remaining six Emma & Roe stores is estimated to be no more than $3.1 million.
On Thursday afternoon telecommunications company MNF Group Ltd (ASX: MNF) announced it would acquire SuperInternet, a Singaporean Facilities Based Operator, for S$2 million.
“The acquisition of SuperInternet in Singapore provides MNF a rapid entry into the complex Singapore market and is part of MNF’s regional expansion strategy into Asia,” MNF Group’s CEO Rene Sugo said.
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