☕️Bad Vintage

Good morning.

It seems that no amount of decanting will improve the palatability of Treasury Wine Estates’ stock at the moment, Capital Brief reports, as short sellers expand their holdings to over 8.7% of the $6.5 billion company’s outstanding shares.

Treasury’s share price dipped below $8 for the first time since January 2017 on Tuesday, after cutting earnings guidance on the back of weak US sales and revealing that its key distributor is also leaving California.

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Market movers

The share price of education services provider IDP crashed yesterday after the company guided a 52% profit plunge, citing visa crackdowns in key markets as a major hit to international student demand.

The quick sync

• As Danielle Haj-Moussa says, Australia’s AI skills gap is a call to action, one that, with the right investment and research-industry alignment, could drive global leadership. (Capital Brief)

• HSBC is quietly carving out a niche in Australia’s booming tech sector, using its global network to back high-growth startups in a way others struggle to match. (Capital Brief)

• Ex-Optus exec Clive Dickens launches Meliora to advise on AI and sports rights. (Capital Brief)

• Risk blind spots and low morale among the investment governance team spark internal unrest at Rest Super amid rising scrutiny from regulators. (AFR)

Trading floor

M&A

• NinjaOne has completed its $424m acquisition of Melbourne-based Dropsuite. (Capital Brief)

• CoStar buys Homes.com.au for $22.8m, may rebrand Domain post-acquisition. (AFR)

• CIMIC plans to sell $1bn UGL transport division as ACS seeks to cut debt. (The Australian)

• Phocas sells to Accel-KKR for $500m+, rewarding founders and investors. (AFR)

• KKR has withdrawn from the Thames Water rescue deal. (Capital Brief)

• Morgans sells $62m block in McMillan Shakespeare at 2.2% discount. (AFR)

• TPG hires Bank of America to sell Made Group for $700m+. (The Australian)

• Meta to buy nuclear power from Constellation as AI demand rises. (Bloomberg)

Capital Markets

• ALS opens $40m share plan to fund lab growth after profit dip. (Capital Brief)

• Retail investors access top Aussie infrastructure via $200m Utilities Trust stake. (AFR)

• Virgin Australia IPO needs retail-focused brokers alongside big institutions. (The Australian)

• Life360 to raise $250m in debt, hinting at upcoming M&A moves. (Capital Brief)

• GemLife targets $2b ASX listing with bookbuild next week, debut before June 30. (AFR)

• James Hardie to raise $1.7b debt for AZEK acquisition and repay existing credit. (Capital Brief)

• PointsBet halts trading ahead of MIXI $353m acquisition update. (Capital Brief)

• Apollo’s John Zito says AI’s explosive infrastructure demands are unlocking a US$1.8 trillion opportunity for private credit to step in where public capital’s short. (Bloomberg)

• Private credit’s capital edge over banks will persist, says Standard Chartered CEO Bill Winters, as post-crisis rules keep traditional lenders at a disadvantage. (Bloomberg)

• Private credit’s rapid growth and deep ties to banks could magnify the next financial crisis, US experts warn. (FT)

• Antares Capital teams up with Ares on US$1.2b credit secondary deal, spotlighting the rise of continuation funds as private credit investors seek faster returns. (WSJ)

VC

• None

People moves

• John Gualtieri, current CEO of Kmart and Target, will take over as Officeworks boss in August, following Sarah Hunter’s resignation. (Capital Brief)

• Domino's reshapes Japan leadership to boost turnaround, with new COO, interim CEO, and CFO appointment. (Capital Brief)

• Jeff Howard linked to oOh! Media CEO role amid mixed reports on candidacy. (The Australian)

• Perpetual names Vivek Prabhu head of credit and fixed income amid leadership transition. (Capital Brief)

• Pilbara Minerals CFO Luke Bortoli resigns after a year in role. (Capital Brief)

The watercooler