☕️ Super sting

Rest costly mistake: members charged for insurance they rejected

February 07, 2025

Good morning.

You’re unlikely to be a Rest Super member, but if you are, you better check this one out. The Oz is reporting the fund wrongly reactivated insurance for 2,500 members who had opted out, charging them since June. The fund reportedly knew in December but only told members a month later—giving them 35 days to cancel and claim refunds.

The error came from MUFG – previously Link Market Services – a familiar name in super admin scandals. Meanwhile, ASIC is already circling the sector over delayed death and disability payouts, with funds like Cbus and AustralianSuper in the spotlight.

ASX as at market close. Commodities and crypto in USD.

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Market movers

News Corp’s digital bets seem to be paying off, with surging real estate and Dow Jones revenues lifting Q2 earnings. That sent its Aussie stock higher on Thursday, but alas, shares in the US were lower.

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The quick sync

  • US lawmakers to ban DeepSeek after hidden code was found leaking logins, while Australia’s DeepSeek ban faces enforcement challenges. (Capital Brief)(WSJ)

  • Australia's tougher BNPL rules are set to shrink the sector even further. (Capital Brief)

  • Treasurer Jim Chalmers flags EV road user charge as a priority tax reform. (AFR)

  • Potentia Energy’s $1b deal for CVC and Cbus renewable energy assets set to shake up the clean-energy market. (AFR)

  • Investors piled into Australia’s record-breaking $15b bond sale, drawn by safe-haven demand and expectations of an imminent RBA rate cut. (AFR)

Trading floor

M&A

  • Contact Energy defends Manawa takeover amid NZ regulatory concerns. (Capital Brief)

  • Carlyle acquires majority stake in Bungama battery project in a $200M deal. (AFR)

  • Nippon Steel hopes a meeting between Japanese PM Ishiba and US President Trump could support their $14.1B acquisition of United States Steel, despite previous opposition. (Bloomberg)

  • Winc office supplies brand hits the auction block after Platinum Equity acquisition. (AFR)

  • Potentia Energy acquires $1B in Australian renewable assets from Cbus and CVC. (Capital Brief)

  • Beach Energy targets Coal Seam Gas acquisitions in Queensland to expand but faces challenges in finding large-scale targets. (The Australian)

  • GDG is set to acquire Evidentia for $320M, strengthening its investment research division. (AFR)

  • Nissan is seeking a new US tech partner after ending talks with Honda. (Bloomberg)

  • State Grid’s desire to increase its stake in Jemena has hindered GIP’s $1.8B purchase offer, as the Foreign Investment Review Board would likely block it. (The Australian)

  • Herron Todd White (HTW) partners with Quadrant Private Equity, with QPE acquiring a majority stake to fuel growth. (Business Wire)

  • DyFlex begins an acquisition strategy with Five V Capital's support to tap into SAP cloud migration opportunities. (AFR)

  • Citigroup and Bank of America are helping finance the Seven & i buyout, focusing on refinancing its US unit's debt. (Bloomberg)

  • Wall Street banks sold $5.5B of Musk's Twitter acquisition debt to investors, with minimal discounting. (AFR)

  • Forever 21 is considering selling leases or filing for Chapter 11 to restructure its business. (Bloomberg)

  • Bain Capital is negotiating to acquire Healthscope's debt, continuing its strategy of buying debt-laden companies. (The Australian)

Capital Markets

  • REA Group increased its half-year profit and dividend, and CEO Owen Wilson will retire in late 2025. (Capital Brief)

  • Alterity Therapeutics seeks $40M raise after Phase 2 results boost shares. (AFR)

  • A fiber-optic failure disrupted Canada’s government network on Jan. 31, impacting coordination ahead of US tariff threats, with no evidence of sabotage found. (Bloomberg)

  • Morningstar adds Woodside Energy to its ‘best ideas list,’ citing undervaluation while removing Santos despite its low price. (Capital Brief)

  • Wesfarmers shares rise after UBS upgrade, with analysts seeing growth potential in Bunnings' market expansion and online sales. (Capital Brief)

  • Polymetals is preparing to raise $20M-$30M after a 200% increase in its share price, partnering with Blue Ocean Equities. (AFR)

  • Energy sector falls 1% as China’s tariffs and Saudi oil price hikes impact crude. (Capital Brief)

  • Incitec Pivot seeks $1.2B for its fertiliser unit, but some bidders may find the price too high. (The Australian)

  • Employment Hero hits profitability and targets $300M ARR after the Humi acquisition. (Capital Brief)

  • AirTrunk CEO Robin Khuda’s $100M donation to the University of Sydney is viewed as a powerful gesture for DEI in the workplace. (Smart Company)

  • COSBOA slams Labor over opposition to tax-free lunch policy. (Capital Brief)

  • Deloitte predicts sluggish near-term investment, but long-term growth from tech and net zero transition. (Capital Brief)

  • Tesla sales fall in Europe due to inventory issues and Musk’s political backing. (Capital Brief)

  • TPG Rise Climate's $2.2B all-cash deal to acquire Altus Power boosts its shares by 28%. (Reuters)

  • BNPL growth may slow further with new Australian regulations on lending. (Capital Brief)

VC

  • Beaten Zone Venture Partners raises $10M for defence tech, aiming for $60M to back Australian firms targeting the US market. (Capital Brief)

  • Steve Baxter’s defence VC firm closes first round, plans deployment. (AFR)

  • Min-Kyu Jung raised $25.5M for Ivo, an AI-powered platform that automates contract reviews for legal teams. (Startup Daily)

People moves

  • Pexa Group's Australia CEO Les Vance resigns after less than a year, while the company revises cost and tax expense guidance. (Capital Brief)

  • Jarden hires Matt Wilson from Jefferies as head of financials research. (AFR)

  • Vaxxas appoints global vaccine experts to advance its needle-free vaccine technology toward late-stage trials and commercialization. (Capital Brief)

  • Antony Catalano and Nicholas Bolton's business partnership ends, marking the collapse of a significant corporate alliance. (AFR)

  • Dovetail drops suppression bid in CEO Benjamin Humphrey’s misconduct lawsuit. (Capital Brief | Capital Brief)

  • A NSW lawyer faced a complaint after ChatGPT fabricated non-existent legal citations in his submissions. (Startup Daily)

  • Ron Walker’s famed Sorrento beach house has fetched $15m —$5m less than it might have, had the family not kept its prized jetty. (AFR)

  • Political survivor Peter Mandelson has Britain’s top diplomatic job in Washington, tasked with managing Trump, defending UK interests and resisting his own knack for controversy. (FT)

  • HSBC eyes a £15m pay deal for CEO Georges Elhedery while slashing costs and jobs in a major bank shake-up. (FT)

☝️ Know about a deal or people move we don’t? Hit reply.

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