☕️Under the Microscope

Good morning.

While Klarna’s colourful CEO Sebastian Siemiatkowski took to the airwaves on Tuesday to spruik his unicorn’s preparedness for an IPO, buy-now-pay-later players down under are facing a different reality.

The local BNPL sector could find itself pincered between the Treasury’s newly proposed legislative regime, as well as a new review into Australia’s Credit Reporting Framework launched quietly by the Attorney General a few weeks ago. Gadens partner Edward Martin argues a deft balance is required between increased regulation and potential “overkill” that could threaten the existence of the more accessible form of credit.

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Market movers

Shares in GUD Holdings jumped over 12% during trading on Tuesday to close at $10.96, after the auto accessories maker reaffirmed its earnings outlook in a trading update late on Monday. GUD said its FY24 earnings were in line with the previous estimate of $193.5 million, while the automotive segment continued to trade well across all key businesses. UBS analysts trimmed their FY24 earnings forecast marginally but retained their ‘buy’ rating on the stock along with a 12-month price target of $12.80.

The quick sync

• Jim Chalmers is setting up a stark choice for voters with the 2024-2024 federal budget. (Capital Brief)

• Seven Group reaches 91.19% ownership of Boral, nearing full control. (The Australian)

• Grant Thornton shifts to a nine-day fortnight after a trial coincided with record-high productivity, employee retention and profits. (AFR)

• Class-action newcomer Pogust Goodhead is zeroing in on mining and financial services. (Capital Brief)

• BHP CEO Mike Henry says investors need to decide whether the BHP or Anglo American management team will better execute the companies’ respective restructuring plans. (Capital Brief)

M&A

• Engie has selected lenders including ANZ, BNP Paribas, and Deutsche Bank for financing as it looks to sell up to 50% of its 250-megawatt Goorambat East Solar Farm in Victoria. (AFR)

• IFM increases Atlas Arteria stake, seeks board seat. (The Australian)

• Suitors are vying for Angela Ashton's controlling stake in Evergreen Consulting. (AFR)

• Super funds exit $8b Utilities Trust of Australia fund due to high energy transition costs; Aware Super selling $600m stake. (AFR)

• Karoon Energy has gained sell-side support from Barrenjoey's analyst Dale Koenders for its growth via M&A ahead of AGM, despite pressure from activist investors. (AFR)

Capital Markets

• Healius refinances debt, extending support until March 2027. (The Australian)

VC

• Data Zoo has raised $35m in Series A funding from Ellerston Capital to strengthen its market position. (Data Zoo)

People moves

• None

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