☕️ Trading trouble

Good morning.

ASIC is facing a surge in insider trading and market manipulation reports, with Capital Brief’s Jack Derwin reporting the number of suspicious activity reports (SARs) filed with the regulator is skyrocketing.

At the current rate, 2024 will see a record 180 reports, marking a 30% increase from last year, after big increases in the previous two years.

Despite the data – obtained under an FOI request – and recent high-profile incidents involving Novonix and Star Entertainment, plus insider trading allegations at the ASX, the regulator argues the surge in reporting reflects market participants' vigilance, not declining integrity.

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Market movers

Mineral Resources shares soared 16% after the FIRB approved a $1.3b deal to sell a 49% stake in its Onslow haul road to Morgan Stanley Infrastructure Partners. MinRes will keep control, with a potential $200m bonus tied to iron ore output.

Surely, comments by MinRes lithium boss Joshua Thurlow at a conference suggesting China's CATL halting lithium operations could signal a pricing recovery didn’t hurt.

The quick sync

• Banks push for extra fees in real-time payments such as PayTo, which is meant as a low-cost direct debit alternative. (Capital Brief)

• Morgan Stanley’s Mike Wilson says the AI theme is “overcooked”.(Bloomberg)

• Star Entertainment lenders offered an extra $150m to help it survive a cash crunch caused by cost blowouts at its new Brisbane casino. (AFR)

• Some economists see the potential for an RBA U-turn with rate cuts coming sooner than expected. (Capital Brief)

• Landlords using AI-powered screening and background checks risk running afoul of fair housing laws. (Bloomberg)

Trading floor

M&A

• Infratil supports Contact Energy's acquisition of Manawa Energy, which operates 25 hydro schemes in New Zealand. (Capital Brief)

• Circuitwise, backed by Quadrant Private Equity, is acquiring Nautech Electronics in its first deal since the investment. (AFR)

• Westpac’s auto loan sale has stalled, likely due to challenges in separating the loans, according to market speculation. (The Australian)

• Newmont is selling the Telfer mine and its 70% stake in Haveiron to Greatland Gold, after acquiring the assets through its $26bn Newcrest deal. (Capital Brief)

• Vysarn is offering $24m and 10 million shares upfront, plus 30 million more if EBITDA targets are met, to fund an acquisition. (AFR)

• Namoi Cotton directors have advised shareholders to accept Louis Dreyfus Company's takeover offer, following regulatory approvals from the ACCC and Foreign Investment Review Board. (Capital Brief)

• Crescent Capital sold its 30% stake in Australian Clinical Labs for $200m, at a 4% discount, with E & P Corporate advisory handling the trade. (The Australian)

• TPG Capital has begun meetings for the $4bn sale of CRO Novotech, with Goldman Sachs and Jefferies advising. (AFR)

• REA's bid to acquire UK property portal Rightmove was rejected. (Capital Brief)

• The regulator extended its review of Lendlease's sale of 12 residential communities to Stockland, with the ACCC yet to accept Stockland's proposal. (apital Brief)

• First-round offers for Anglo American’s Australian coal mines are in, with South32’s Illawarra coal sale affecting the market. (The Australian)

Capital Markets

• National Storage REIT is raising $300m via convertible notes to refinance debt, joining recent convertibles market activity. (AFR)

• OpenAI aims to raise at least US$5bn at US$150bn valuation. (FT)

VC

• Renewable Metals secured $8.1m in additional Seed funding, with support from Investible’s climate tech fund, Virescent Ventures, and The Grantham Foundation. (Startup Daily)

• Sydney biotech startup Algenie raised $1.1m to develop an algae platform for replacing fossil fuels in plastics and fuels. (Smart Company)

• Australian healthtech startup Femtek is rebranding as ‘Kyri’ to strengthen its brand and address an IP issue. (Startup Daily)

People moves

• ASX Chair Damian Roche will retire, succeeded by David Clarke, following the failed CHESS blockchain upgrade. (Capital Brief)

• Culture Amp named Andy Brockhoff VP and GM for Asia Pacific, starting September 2024. (Capital Brief)

• Optus appointed Felicity Ross and Anthony Shiner as managing directors, in preparation for new CEO Stephen Rue. (Capital Brief)

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