In today’s briefing:
- ASX200 Index Rebalance: HDN AU Inclusion Is a Matter of Time (Or Timing)
- Brookfield/Cannon-Brookes Lowball Bid for AGL (AGL AU) Likely to Get the Kibosh.
ASX200 Index Rebalance: HDN AU Inclusion Is a Matter of Time (Or Timing)
- Aventus Group (AVN AU) received the ATO tax ruling on 18 February. This creates some uncertainty around the timing of the HomeCo Daily Needs REIT inclusion in the ASX200 Index.
- Given the ‘latest available shares in issue’ are used, we think there is a better than even chance of the stock being included in the index at the March rebalance.
- If HomeCo Daily Needs REIT (HDN AU) is not included in March, then it could replace Crown Resorts in May. Else, the stock will be added at the June rebalance.
Brookfield/Cannon-Brookes Lowball Bid for AGL (AGL AU) Likely to Get the Kibosh.
- AFR revealed late Saturday that Brookfield and Atlassian billionaire and recent green warrior Mike Cannon-Brookes had lobbed an A$8bn (4.7% premium) bid for AGL ahead of its vote to split.
- The bid is too low, and would be fraught with competition issues, but it begs the question of whether the company would be better un-split and made greener, faster.
- Other megacaps out there have expressed interest in owning Australian integrated utilities, and there are plans on the drawing board which would allow greening if more firming capacity investment arrived.
Before it’s here, it’s on Smartkarma
