We should get an idea this morning if the Kirin brewing group of Japan will be willing to pay a ‘right’ price for the 54% of local beer maker, Lion Nathan that it doesn’t already control.
Lion shares were suspended on Thursday when the directors revealed the approach from its biggest shareholder.
Lion told the market that the trading halt would last until today to allow talks to happen between the independent directors and Kirin.
There has been much talk about the ‘right’ price, with numbers ranging up to $A11to $12 a share, according to media reports this morning.
Lion nicely added to the pressure on Kirin to cough up with the highest possible offer with the early release Friday of its trading update for the half year to March 31. (Source)
"Lion Nathan’s solid first half beer results have enabled a positive revision to the 2009 full year reported net profit after tax guidance to $305-315 million (previously $300-315 million), which represents 12% to 16% growth on the prior year," the company said.
Lion Nathan said first half reported net profit after tax for the first half was up 6.9% to $176 million.
"The company expects a higher growth rate in the second half due to innovation momentum, Boag’s growth accelerating, the timing of Easter and the cycling of the investment period of the prior year where fourth quarter marketing spend and the funding costs relating to the Boag’s acquisition had a significant impact on results.”
Net sales revenue for the first half grew 5.5% to $1.18 billion.
The company said it was generating strong cash flows and its funding position remained secure, with no debt maturing in the remainder of the 2009 full year.
That will make it harder for Kirin to skimp on the offer price.
Meanwhile Woodside Petroleum shares rose 15c to close at $37.80 on Friday after a mixed quarterly production report.
Woodside said its total oil and gas production for the first quarter jumped 20% from the March quarter of 2008 as output from new projects came on stream.
Production for the three months to March totalled 20.6 million barrels of oil equivalent (MMboe), compared with 17.2 MMboe for the same quarter in 2008.
That (and the lower value of the Australian dollar) offset the slump in world oil and gas prices and first quarter revenue off 1% only, to $1.09 billion.
But compared with the fourth quarter of 2008, production fell 11% because of mechanical and maintenance shutdowns, cyclones (seasonal factors) and natural field decline.
Revenue in the first quarter slumped 34% from the December quarter because of the fall in production and lower prices.
The company said in the statement: "Although sales volumes increased by 21% compared to the previous corresponding period, adverse movements in commodity prices resulted in sales revenue that was 1% lower than that of Q1 2008. Compared to previous quarter, revenues were lower due to lower commodity prices and sales volume."
Woodside said the company held about $US1.64 billion ($A2.3 billion) in undrawn debt facilities at the end of the quarter.
The company reduced its forecast for 2009 capital expenditure to between $6.6 billion and $6.7 billion from November’s $7.3 billion estimate.
And struggling OZ Minerals continues to generate good news for its suffering shareholders.
After getting federal government approval to sell mines to China Minmetals Group for around $A1.6 billion to pay debt, OZ Friday revealed it had agreed to sell its Martabe gold and silver project in Indonesia to another Chinese company, China Sci-Tech holdings for $US211 million.
The sale is expected to be completed by mid-June, subject to conditions.
OZ said in the statement that China Sci-Tech has been seeking mining investments and has formed a partnership through a member of the Soeryadjaya family in Indonesia (one of the country’s wealthiest families).
OZ Minerals is also still talking to its lenders to extend an April 30 deadline on $A1.1 billion of debt to June 30.
The sales leaves OZ with one producing asset, the $A1.2 billion Prominent Hill copper and gold mine in South Australia (and the best mining prospect in this country for some years), and about $A600 million of cash.
“The proceeds from this sale will make an important contribution to addressing OZ Minerals’ refinancing issues,” Chief Executive Officer Andrew Michelmore said in the statement.
OZ Minerals shares had the best day for some weeks with a 7.1% rise to 67.5c on Friday.
That was the highest close since mid November when the company’s shares were sliding towards collapse.
Consumer trading group, GUD Holdings (Sunbeam) is seeking to raise capital to strengthen its balance sheet after revealing a small profit fall in the first three quarters of the 2009 financial year.
In a trading update for the nine months to March 31, 2009, released Friday, GUD reported net profit had fallen 6% to $24.7 million on the prior corresponding period.
Trading net profit was down 3% to $27.3 million over the same period,
