☕️ Lowe's last stand

It's RBA week, and the last of the Lowe era

September 04, 2023

Good morning.

It’s RBA week again, and the last decision of the Philip Lowe-era tomorrow afternoon. The consensus in the market is that the cash rate will remain on hold at 4.1%, and that prediction only strengthened after last week’s soft inflation reading.

But you never know. The LOI Interest Rate Prediction Poll™️ is up and running.

LOI Subscriber #TBD

MARKET MOVERS

*Stock data as of the market close. Commodities and crypto data in USD.

Market News: Pointsbet shares were up sharply on Friday after the company banked the first instalment from the proceeds of the sale of its US business to Fanatics, and said it would return $355 million to investors later this month.

After the US sale is completed, the slimmed down PointsBet will still operate sports betting businesses in Australia and Canada. It looks like a strong candidate to be involved in further corporate activity in the not too distant future.

THE QUICK SYNC

  • Brighten up your Monday with this profile of Chad Profitz, Australia's best LinkedIn creator. (Capital Brief)

  • US jobs data was mixed, with nonfarm payrolls stronger than expected but the unemployment rate ticking up to 3.8%. (CNBC)

  • The Australian government struck a pared back deal for an undersea power cable linking Tasmania to the mainland. (Bloomberg)

  • SoftBank's Arm will seek US$47 to US$51 per share in its upcoming IPO, valuing the company between US$50 billion and US$54 billion. (Reuters)

  • Octopus Energy (which is 20% owned by Origin Energy) has acquired Shell’s household power and broadband business in the UK. (Sky UK)

  • Biden's support for EVs opens a door for Australian lithium (Capital Brief)

TRADING FLOOR

M&A:

  • Energy Development Corporation has been conducting a sales process for its Bucca project. (AFR)

  • Suitors for BHP's Daunia and Blackwater coal mines are being requested to solidify their financing proposals for the purchase of these assets. (The Australian)

  • Barrenjoey Capital Partners and JPMorgan were jointly offering 125m shares of Ventia Services Group at a price of $2.65 per share. (AFR)

  • The McMillan-FleetPartners deal is expected to be more complex than a straightforward takeover. (The Australian)

  • TA Associates has put in an indicative bid of $600m for a controlling stake in AZ NGA. (AFR)

  • Santos has officially confirmed the sale of a minority stake in its PNG LNG venture to the national oil company of Papua New Guinea. (AFR)

  • Pepper Money has acquired HSBC's New Zealand mortgage portfolio, which is valued at $1.3bn. (BNA)

  • The sale of Seabreeze Beach pub is expected to ignite interest in regional real estate transactions. (SMH)

Capital Markets:

  • NexGen Energy has successfully obtained $240m in financing through investments from Washington H. Soul Pattinson and Queens Road Capital. (AFR)

  • Virgin Australia is currently in a state of uncertainty as Bain Capital postpones its plans for an IPO. (The Australian)

VC:

  • Australian startups are gearing up for a hot secondary summer (Capital Brief)

  • Listing Loop, a Melbourne-based proptech company, has closed the first tranche of its Series A, securing $2.1m. (Startup Daily)

  • Samsara Eco is planning to construct a $25m research and development hub aimed at making infinite recycling accessible to a wider audience. (Smart Company)

Others:

  • Investors are urging Ramsay Health Care to consider a spin-off of its Sante division. (The Australian)

  • Robert Bates, the founder of the Aquamamma and Aurum+ wellness empire, purportedly informed investors that the company's valuation would double. (AFR)

  • Samsara Eco is expanding its operations with a new research facility dedicated to advancing its "continuous plastic recycling" technology. (BNA)

  • Anacacia Capital is prepared to commence the fundraising process for its fourth fund, Fund IV. (AFR)

  • Oaktree Capital Management has joined forces with Spire Capital to introduce the Spire Oaktree Special Opportunities Fund. (AFR)

  • Folklore's high employee turnover is sparking discussions within the venture capital sector. (AFR)

  • Roc Partners is bringing the Vic Business Growth Fund into the Skyline Building Group. (AFR)

  • Herbert “Bud” Scruggs and Randal “Randy” Quarles have been quietly trying to find like-minded investors for what they pitch as a new style of private equity investment. (AFR)

  • Desygner is preparing to challenge Canva's dominance in the market. (BNA)

THE WATERCOOLER