☕️ Takeover buzz

Good morning.

M&A is back in vogue on the ASX, as dealmakers feel a fresh wave of optimism after Blackstone’s hefty buy of AirTrunk.

As Capital Brief’s Jack Derwin reports, a weaker Australian dollar and excess private equity capital are creating ripe conditions for takeovers, especially in tech and gambling.

PointsBet appears to be on the radar, with speculation pointing to gaming operator Easygo, although denied. Tabcorp also looks vulnerable after a steep valuation drop, and tech stocks are drawing attention from offshore players.

With companies slow to cut costs and a strong PE pipeline, there's anticipation of a busy close to the year. Auckland Airport and beaten-down miners, alongside outdoor media and lithium stocks, are also on the radar for opportunistic bids, dealmakers said.

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Market movers

Shares in 4WD parts business ARB jumped 6.1% following news of its US$30m ($45m) expansion into the US off-road market.

The move sees ARB upping its stake in US-based associate ORW, which is snapping up 42 stores under the 4 Wheel Parts banner from Hoonigan, the company founded by the late Ken Block.

Citi analysts saw this as a smart play to increase ARB’s US footprint and brand recognition.

The quick sync

• Uber's payroll tax victory in NSW could be the start of a drawn out legal conflict — which might go all the way to the High Court. (Capital Brief)

• The Coalition will block Jim Chalmers’ attempt to create a new specialist interest rate-setting board at the RBA. (AFR)

• Tesla’s Robyn Denholm says start-ups need greater access to funding via direct government investment programs or tax system changes. (The Australian)

• Criminal and civil fraud charges against outspoken short seller Andrew Left unsettle Wall Street. (NYT)

• Brokers and exchanges are discussing expanding so-called Zero-day-to-expiry options or #0dte options for indices, to individual stocks such as Tesla and Nvidia. (WSJ)

Trading floor

M&A

• Regis Resources and Anglogold Ashanti approved the Havana underground project at Tropicana, set to boost production between 2027 and 2029. (Capital Brief)

• ProTen is seeking buyers, with Macquarie Capital highlighting its $150m revenue and $70m EBITDA for 2024. (AFR)

• Investors are wary of REA Group's potential $10bn acquisition of Rightmove, concerned it might overpay. (The Australian)

• Adelis Equity Partners has taken a majority stake in Melbourne’s IonOpticks and will invest with the company’s founders. (AFR)

• Amber has partnered with E.ON Next to enter the UK market, gaining access to over five million consumers. (BNA)

• Charter Hall and Hostplus bid $710m for Hotel Property Investments, which owns 58 pubs. (AFR)

• HPI urges shareholders to reject a takeover offer from Charter Hall Retail REIT and Hostplus, stating it undervalues the company. (Capital Brief)

• Goldman Sachs is seeking buyers for News Corp’s 65% stake in Foxtel, targeting non-traditional investors. (AFR)

• Greatland Gold is close to buying Newmont’s Telfer mine but seeks repairs to tailings dams first. (AFR)

• ARB will raise its stake in ORW USA to support its acquisition of Hoonigan's 4WP business. (Capital Brief)

• HG Vora Capital sold its 4.6% stake in Pointsbet pre-market for $8 million through Jefferies. (AFR)

• Pacific Equity Partners has informally offered to buy RetireAustralia. (The Australian)

• KKR and Skip Capital may withdraw their bid for a 74.25% stake in Queensland Airports Limited, jeopardizing the process for advisers Barrenjoey and Macquarie Capital. (AFR)

Capital Markets

• HUB24 and Sandfire Resources will join the ASX 100, while Domino's Pizza and Arcadium Lithium will be removed. (Capital Brief)

• Greatland Gold is raising $500m to buy Newmont’s Telfer and Havieron assets, with Canaccord Genuity seeking investor support. (AFR)

• Aventuur is raising $10m for its Perth Surf Park with loan notes, offering investors either annual interest or "surf benefits" like private access and free surfing. (Capital Brief)

• Algenie has secured $1.1m to develop a cost-effective algae platform for sustainable plastics and fuels. (Capital Brief)

• GDC shares fell after it announced no decision on its future following the sale of AirTrunk to a Blackstone-led consortium. (Capital Brief)

• SafetyCulture raised $165m at a $2.5bn valuation, led by Airtree. (Capital Brief)

VC

• Allegro Energy raised $17.5m for its water-based Redox Flow Batteries. (Startup Daily)

People moves

• Westpac named Anthony Miller as its next CEO, replacing Peter King. (Capital Brief)

• Dubber appointed Matthew Bellizia as its new CEO after dismissing Steve McGovern over alleged misuse of funds. (Capital Brief)

• Star Entertainment appointed Mark Mackay as Gold Coast CEO, finalizing its decentralized management structure across its Brisbane, Gold Coast, and Sydney resorts. (Capital Brief)

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