Hey there, thanks for tuning in. Holly Shields reporting to you
live from Sydney, and you’re watching the Stocks in Action on Kalkine TV.
Today’s we’ll be looking at the latest updates from Buy now. Pay smarter.’ business, Openpay,
Investment company, Washington H. Soul Pattinson and professional service provider Worley. We will
also cover Construction materials supplier Adbri and gold miner Evolution Mining.
Firstly, shares of ‘Buy now. Pay smarter.’ business, Openpay were trading down today as
the company announced a ground-breaking partnership with Cross River Bank
to support Openpay’s expansion into the US under the Opy brand. The announced partnership
allows the company to launch a US platform to facilitate Cross River’s origination of
“Buy now, pay smarter” consumer loans. Cross River is a New Jersey state-chartered,
Federal Deposit Insurance Corporation -insured bank that merges the forward-thinking offerings
of a technology company with the established expertise and traditional services
of a bank. The collaboration paves the way for Openpay to offer closed-end consumer loans
in amounts up to US$20,000 and with terms up to 24 months originated and funded by Cross River.
Under the partnership, when a consumer applies for a loan on the platform,
the loan is underwritten by Cross River utilizing Openpay’s approved risk models and Cross River’s
credit underwriting and strict regulatory framework. Once the consumer selects their plan
option, the loan is funded and originated by Cross River and ultimately serviced by the company.
This allows them to administer the consumer experience end-to-end. Cross River serves as
the lender for all Openpay -branded loans originated in the US under this agreement.
…………
Moving on to the next news that covers Washington H. Soul Pattinson. Investment company,
Washington H. Soul Pattinson shares were trading down on Tuesday after the company declared the
merger between business Washington H. Soul Pattinson and Company and Milton
Corporation on 5 October 2021. As per the scheme of arrangement, all Milton Corporation shares have
now been transferred to eligible shareholders of Washington H. Soul Pattinson. As a result,
Milton Corporation shareholders have been issued a consideration of 0.1863 Washington H. Soul
Pattinson shares for each Milton Corporation share they held on to the scheme record date.
Washington H. Soul Pattinson has issued over 121.47 million new shares as consideration today,
and these are to trade on ASX on a regular settlement basis from Wednesday,
6 October 2021. In addition, shares to be issued to ‘Ineligible Overseas Shareholders’
as per scheme have been issued to a nominee appointed to sell those shares.
Let us look at the details of the Merger:
Merger of Washington H. Soul Pattinson and Milton Corporation creates an investment
house with a diversified portfolio and a significant market capitalisation.
The merged entity also has access to a range of assets, including private and international
equity, credit opportunities, real assets and other ASX listed trusts. As a result, Milton
Corporation has applied for an ASX delisting, to be effective from Wednesday, 6 October 2021.
………………
Next news covers Worley. Shares of ASX-listed professional service provider Worley were trading
flat on Tuesday as the company announced that it has been awarded an extended
non-binding frame agreement from Woodside Energy for its brownfields engineering,
procurement and construction management services
to continue supporting the Karratha Gas Plant and Pluto LNG assets in Western Australia.
Worley shared that this agreement covers brownfield engineering services
which include engineering studies and technical support,
front-end engineering and detailed design services for sustaining capital projects,
procurement, commissioning, project management and construction and shutdown management.
Worley further shared that it has been providing brownfield engineering services
to Woodside for over 30 years, utilising various contracting models. The original agreement was
established in 2018, and this extension is for a further two years with a further option to extend.
………..
Next news covers Adbri. Shares of construction materials supplier Adbri
were trading down on Tuesday as the company announced the appointment of Nick Miller as
the Chief Executive Officer, to the Board as Managing Director and CEO, with effect from
5 October 2021. Miller has been instrumental in the setting of a transformational agenda
for the Company, since he has started to be a CEO in January 2019, the Company release stated.
He also astutely guided the business through the challenging times in COVID-19 pandemic,
stated ADBRI Chairman, Raymond Barro.
.………
Last news to be discussed in this session covers Evolution Mining.
Shares of gold miner Evolution Mining were up on Tuesday as the company signed a binding agreement
with Navarre Minerals to sell Mt Carlton gold mine in Queensland.
The total consideration of the transaction is AU$90 million consisting of AU$40 million payable
on completion as equity and cash. Evolution Mining will also participate in Navarre Minerals’ equity
issue for a maximum holding of 19.9 per cent, i.e., AU$20 million. In addition, up to AU$25
million of contingent consideration is payable on achieving cumulative gold production milestones.
It will be paid in the form of a 5 per cent gold price linked royalty if the average spot gold
price is higher in a given quarter. The royalty is payable from 1 July 2023 for up to 15 years.
The current transaction will close by December 2021 quarter.
The divestment is a part of Evolution Mining’s strategy to upgrade the quality of its portfolio
assets. However, IT will retain upside exposure to Mt Carlton via shares held in Navarre Minerals
and contingent considerations. Navarre Minerals will establish its economic interest in Mt Carlton
from 1 October 2021. Evolution Mining will provide Navarre Minerals support to ensure a
safe and smooth ownership transition. Further, Evolution Mining’s revised three-year outlook
reflects a low level of geological confidence and no certainty of exploration work.