Hi, I am Racheal, and you are watching Kalkine TV live from Sydney.
This is The Stocks in Action show.
In today’s Stocks in Action show, we will take a look at the latest updates from lithium
player Argosy Minerals, Australian multinational contractor CIMIC Group and transport fuel
importer and distributor Z Energy.
We will also cover Sigma Healthcare, the Australian wholesale distributor to pharmacies; and SaaS
provider ReadyTech Holdings.
Firstly, shares of lithium player Argosy Minerals were trading flat on Monday.
The company is planning to progress the future potential of the Altiplano 200 solar energy
plant to power the 10,000 tonnes per annum expansion operation at Rincon Lithium Project,
located in Salta Province, Argentina.
The solar power facility is wholly owned by Neoen, France’s top-most independent producer
of renewable energy.
The power plant construction is near completion, and the facility is due to become operational
by late 2021.
Argosy Minerals’ local energy consultants have confirmed that a direct connection is
possible between Altiplano 200 solar power plant and its Rincon operation, and discussions
confirm the commercial interest of both parties with this progress.
With an existing renewable solar energy facility immediately next to the Rincon project, they
aim to maximise its distinctive benefit at the project.
Thus, Argosy Minerals is continuing its discussions with its consultants and Neoen.
…………
Moving on to the next news that covers CIMIC Group.
Australian multinational contractor CIMIC Group shares were up on Monday.
The company announced that its engineering company UGL has been awarded a contract extension
to offer asset management and project-related services at British Petroleum fuel terminals
across Australia.
The announcement revealed that the multi-year contract, which includes engineering and maintenance
services, was awarded by Australian Terminal Operations Management, a joint venture between
the two companies.
The Group informed that the extension would generate nearly AU$150 million revenue to
UGL.
UGL, formerly known as United Group, was acquired by CIMIC Group in the year 2016.
According to the announcement, the contract extension is effective from September this
year.
CIMIC Group is a multinational contractor that offers engineering and construction services
along with other services.
Next news covers Z Energy.
Shares of transport fuel importer and distributor Z Energy were trading down on Monday.
The company announced that an extension of its original four-week exclusivity period
regarding a non-binding indicative proposal for 100 per cent acquisition of its shares
by petroleum focused Ampol.
The exclusivity period has been extended by further two weeks to enable addressing any
outstanding matters with Ampol’ proposal.
Ampol and Z Energy shall also determine the agreeability of any key transaction terms
and documentation needed.
However, there is no certainty that discussions between Z Energy and Ampol will result in
any agreement for the acquisition.
The board of directors will provide shareholder updates and market information on any material
developments.
As per the announcement, Z Energy is to provide a market update on or before 11 October 2021.
………………
Next news covers Sigma Healthcare, the Australian wholesale distributor to pharmacies.
Sigma Healthcare has launched a takeover bid for Australian Pharmaceutical Industries,
rivalling an offer from Wesfarmers.
Shares of the Sigma Healthcare were trading up on Monday.
The company announced that it has submitted a conditional non-binding indicative proposal
to acquire 100% of the shares in Australian Pharmaceutical Industries.
According to the proposal, Australian Pharmaceutical Industries shareholders would consider 2.05
Sigma shares and AU$0.35 cash for each API share held.
API shareholders will also have the flexibility of a mix and match option under the proposal
to elect maximum cash or maximum shares consideration.
Sigma has also shared that based on Sigma shares' most recent closing price; the proposal
determines a value of AU$1.57 per API share before synergies.
API shareholders would own 48.8 per cent of MergeCo under the proposal.
The announcement has also revealed that the proposal would allow up to AU$0.05 per share
fully franked dividends payment by API, including any final dividend for the financial year
ended 31 August 2021.
.………
Last news to be discussed in this session covers ReadyTech.
Shares of ASX-listed SaaS provider ReadyTech are trading up on Monday after the company
announced the strategic acquisition of Avaxa.
Avaxa offers student management software service to Australia’s leading enterprises, TAFE
and Higher Education institutions, with deep domain expertise.
For two key TAFE clients – Chisolm Institute and Melbourne Polytechnic – Avaxa manages
the student journey from enquiry to graduation, including course lifecycles, timetables and
resources, finance, compliance, and business operations reporting.
The acquisition resulted in expanding ReadyTech’s presence in the enterprise education market.
ReadyTech shared that a total consideration of AU$2.2 million was funded from the cash
position.
The acquisition has also Increased ReadyTech’s market share in the education sector, particularly
TAFEs through deep domain expertise, addition of crucial TAFE clients and the ability to
expand TAFE footprint further.
And that’s a wrap for now.
Keep watching kalkine tv for more trending market updates.