Australian shares recovered from early losses near midday, buoyed by rallies in National Australia Bank (NAB) and Lendlease following their respective results announcements. This comes as investors are actively seeking undervalued stocks on the ASX, identifying opportunities in sectors ranging from car dealerships to education providers and pizza chains. These investors aim to capitalise on chances to acquire stakes in fundamentally sound companies at attractive prices.
In company-specific news, Qantas is set to pay a $90 million penalty for the illegal sacking of 1800 workers. The Transport Workers Union will receive $50 million as part of the settlement. Separately, National Australia Bank (NAB) revealed it has underpaid staff, resulting in a $130 million hit to its financials this year. NAB is one of Australia’s largest financial institutions, providing a range of banking and financial services to individuals and businesses. They are currently addressing payroll issues that are under investigation, leading to an anticipated increase of 4.5 per cent in operating expenses for the financial year.
In other corporate activity, private equity firm Adamantem has launched a $162 million bid for ASX-listed Apiam Animal Health, offering 88¢ per share. Apiam Animal Health is a rural veterinary service provider. Major shareholder Chris Richards has already voiced his support for the non-binding indicative offer. Meanwhile, Lendlease is aiming to reassure investors of its turnaround success and its ability to retain management of key wholesale funds after reporting a profit following restructuring efforts.
