In today’s briefing:
- AGL – Down, Not Out. Tight Coal Vs FIDs. And MCB Waiting
- ASX200 Index Rebalance: West African Resources (WAF) In; Uniti Group (UWL) Out
AGL – Down, Not Out. Tight Coal Vs FIDs. And MCB Waiting
- In the last six weeks, AGL Energy Ltd (AGL AU) has fallen and is now at the low end of its post-Brookfield bid trading range. Now below the A$8.25 bid.
- AGL has one generator down – the Loy Yang A Unit 2 – which will be back in late Sep. Guidance is left… unguided. There will be a related loss.
- In the meantime, the rest of the producing assets have probably been having a field day. But given shareholder structure, we’re still in limbo.
ASX200 Index Rebalance: West African Resources (WAF) In; Uniti Group (UWL) Out
- West African Resources (WAF AU) will replace Uniti Group Ltd (UWL AU) in the S&P/ASX 200 (AS51 INDEX) at the close of trading on 21 July.
- We estimate passive trackers will need to sell 45.3m shares (A$226m; 10.2 days of ADV) on Uniti Group Ltd (UWL AU) at the close on 21 July.
- With over 10 days of ADV to buy from passive trackers and only 4 days to implementation, West African Resources (WAF AU) could outperform its peers till 21 July.
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