24th Dec 2015 10:41
LONDON (Alliance News) - The following is a summary of top news stories Thursday.
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COMPANIES
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Anglo American said it has agreed to sell its 83.33% interest in the Dartbrook Coal Mine in Australia to Australian Pacific Coal for up to AUD50 million. Under the deal Australian Pacific will pay up to USD50 million, comprising of an upfront cash payment of AUD25 million and the grant of royalty equal to AUD3.0 per tonne of coal produced by the operation in the future, as well as AUD0.25 per tonne of coal sources from other sites and processed using Dartbrook's processing infrastructure. These royalty payments will be capped at AUD25 million.
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Segro said it has sold its portfolio of offices on the Bath Road in Slough for GBP325 million. The sale price represents a net initial yield of 5.6%, a topped-up net initial yield of 6.3% and a small premium to book value at June 30. The transaction is expected to complete in January. The proceeds of the sale will be used to reduce Segro's gearing and to fund its development pipeline. The real estate investment trust said it expects the disposal to reduce adjusted post-tax profit by GBP9.5 million in its full financial year.
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Metals miner Polymetal said it has entered into a joint venture with OJCS Polyus Gold, under which the former will work on developing the Nezhdaninskoye gold deposit in Yakutia in Russia. Polymetal will acquire a 50% stake in the JSC South-Verkhoyansk Mining Co business, which holds the rights to the deposit. Under the first stage of the joint venture, Polymetal will acquire a 15.3% stake for a USD18.0 million investment, which will be used to fund the activities of the joint venture. Polymetal will then have the option, following completion of the first phase, to participate in an earn-in arrangement to give it a stake of up to 50% in the venture.
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Sirius Minerals said it has signed a 'Take or Pay' offtake agreement in China with Huaken International for the purchase of polyhalite from the York potash project, in what analysts called a "major step forward" for the AIM-listed miner. The agreement is for a period of seven years from first production and pricing is based on a formula linked to polyhalite's constituent nutrients that are consistent with a number of the company's other offtake agreements, Sirius said. The volumes called for in the contract with Huaken ramp up to 500,000 tonnes in the seventh year. Take or Pay refers to a contract whereby the buyer either purchases output from the supplier at a pre-agreed price or faces paying the supplier a penalty.
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AquaBounty Technologies said the Federal Court in Canada has dismissed an application brought before it to prevent AquaBounty from producing AquAdvantage salmon for commercial use. The Ecology Action Centre and Living Oceans Society had appealed against the decision by the Canadian ministers of Environment and Health to allow production of AquAdvantage salmon for commercial use, but the Federal Court found that the decision was "reasonable" and complied with the Canadian Environmental Protection Act.
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NewRiver Retail said it has exchanged contracts to acquire the Neptune portfolio and three other retail assets for a total of around GBP108.0 million. The retail-focused real estate investor said it has paid GBP92.3 million to acquire the Neptune portfolio, which comprises the Ridings Shopping Centre in Wakefield in West Yorkshire, the Commill Shopping Centre in Darlington in the north east of England and the Capitol Shopping Centre in Cardiff in Wales. The purchase price reflect a net initial yield of 8.0%, NewRiver said.
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MARKETS
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UK shares were trading marginally higher in a holiday-shortened session, supported by firm crude oil and other commodities prices. The London Stock Exchange closes at 1230 GMT. Wall Street stock indices were indicated down by between 0.1% and 0.2%. US markets close early at 1800 GMT.
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FTSE 100: up 0.1% at 6,248.53
FTSE 250: up 0.1% at 17,411.68
AIM ALL-SHARE: up 0.1% at 726.31
GBP: up at USD1.4905 (USD1.4872)
EUR: up at USD1.0963 ((USD1.0877)
GOLD: up at USD1,072.20 per ounce (USD1,069.14)
OIL (Brent): up at USD37.21 a barrel (USD36.92)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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UK house purchase approvals unexpectedly declined in November, after a rebound in the previous month, figures from the British Bankers' Association showed. The number of approvals for house purchase fell to a seasonally adjusted 44,960 from 45,463 in October, revised from 45,437. Economists had forecast a higher figure of 46,000. Year-on-year, approvals rose 20% in November. All months this year thus far witnessed annual increases in approvals, the BBA said.
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Economic and price trends have turned favourable, thanks to the stimulus efforts, and the coming year is set to see more progress, Bank of Japan Governor Haruhiko Kuroda said. In a speech in Tokyo, Kuroda said many people were sceptical regarding the prospect of Japan's economy overcoming deflation and achieving the price stability target of 2%, when the central bank launched its qualitative and quantitative easing policy more than two years ago.
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Members of the Bank of Japan's monetary policy meeting noted that the country's economic recovery continues at a satisfactory pace, minutes from the central bank's November 18-19 meeting revealed. The board said that weakness from commodity-exporting economies continue to be the primary downside risk. The members added noted that capex is increasing as industrial profits continue to improve.
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Japan's cabinet, led by Prime Minister Shinzo Abe, approved a record JPY96.7 trillion budget for fiscal 2016 that aims to boost growth with higher tax revenue. Tax revenue is forecast to be a 25-year high of JPY57.6 trillion on the back of stronger corporate profits, thanks to a weak yen. Defense spending is set to exceed JPY5 trillion for the first time. The outlay was raised for a fourth year in a row, by 1.5% to a record JPY5.05 trillion as Japan tries to safeguards its interests in the East China Sea from China's interventions.
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A controversy that arose when a Muslim family was barred from boarding a flight from London to Los Angeles, ruining their planned vacation to Disneyland, triggered calls for an investigation and more demands for an explanation. The family were turned away by a US immigration official stationed at London's Gatwick Airport on December 15. Mohammad Tariq Mahmood, a member of the 11-member family stopped at Gatwick Airport, was quoted by media reports as saying his family, which included his brother, had already checked in online, received boarding passes and reached the boarding gate when they were told they could not board.
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A court in Thailand found two Myanmar migrant workers guilty of the murders of two British tourists on a popular island resort last year. The Samui Provincial Court found Zaw Lin and Wai Phyo guilty of the rape and murder of Hannah Witheridge and the murder of David Miller on Koh Tao in September 2014. Thursday's proceedings were attended by the families of the victims and the defendants, and have drawn much public interest in Britain and Myanmar.
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