- NRW Holdings was the top performer on the ASX, rising 11.65% to AU1.72.
- Wesfarmers shares rose 0.9% on a bid to acquire Australian Pharmaceutical Industries.
- Chalice Mining shares gained over 3% on plan to split its gold asset.
- The share price of Healius rose over 1% on the acquisition of Axis Diagnostic Holdings.
The Australian benchmark index, S&P/ASX200, was in an upbeat mood on Monday, thanks to a strong rally in mining, energy and banking stocks. Investors also cheered resurgence in corporate mergers and acquisition (M&A) activity.
NRW Holdings to sell mining assets to Boggabri
Shares of mining services company NRW Holdings Limited (ASX:NWH) were the top performer on the ASX, rising 11.65% to AU1.72 after the company announced that it would sell its mining equipment to Boggabri Coal Operations Pty Ltd (BCO). The deal involves the selling of 38 major mobile mining assets from Golding to BCO. The transaction is expected to close by the end of July 2021.
Boggabri Coal is a part of Idemitsu Group and can exercise options to acquire a majority of mining equipment of Golding Contractors Pty Ltd, its wholly owned subsidiary. Golding is engaged in the maintenance of the Boggabri Coal Mine.
Wesfarmers bids to acquire Australian Pharmaceutical Industries
Australian conglomerate Wesfarmers Limited (ASX:WES) has unveiled its plan to foray into Australia’s AU$25 billion pharmacy sector after making an AU$687 million bid to acquire local pharmaceutical retailer and distributor Australian Pharmaceutical Industries (API). Reacting to the news, shares of Wesfarmers gained as much as 0.9% to AU$58.54.
The company, which owns Australian retail chains Kmart and Bunnings, has proposed to acquire 100% of API’s shares outstanding for AU$1.38 cash per share by way of a scheme of arrangement. The deal values API at about AU$687 million, based on 498.2 million fully diluted shares outstanding. The bid price represents a 21% premium to API’s last close price of AU$1.145 per share.
Boosted by the development, shares of Australian Pharmaceutical Industries (ASX:API) rallied as much as 20.5% to hit an intraday high of AU$1.38.
Chalice Mining plans to split gold assets, launch IPO
Shares of Chalice Mining Limited (ASX: CHN) gained as much as 3.13% to AU$7.57 after Australian miner said that it would split its gold assets. The stock soon pared gains and declined over 1% to AU$7.26. At the time of reporting, CHN was down 0.5% at AU$7.30.
In an exchange filing on Monday, Chalice Mining unveiled a plan to split its Australian gold assets to create a separate standalone, well-funded Australian gold exploration company with a high-quality asset base in Victoria and Western Australia. The company said that a demerger of the gold-focused entity would be an optimal structure to maximise value for its shareholders.
The exploration and production company has decided to pursue a demerger and initial public offering (IPO) of Pyramid Hill and its other gold projects in the fourth quarter of 2021. The demerger would be subject to the finalisation of the transaction structure and nod from shareholders and regulators.
As per the company, the decision has been taken after the latest drilling results continued to demonstrate the belt-scale potential of its 100%-owned Pyramid Hill Gold Project in the prolific Bendigo Zone of Victoria. The demerger of Pyramid Hill Gold Project in Victoria would deliver its shareholders a standalone, listed, Australian gold-focused exploration company with a strong balance sheet, Chalice said in an exchange filing.
The demerger would allow Chalice to focus on its world-class Julimar Ni-Cu-PGE Project and the new West Yilgarn Ni-Cu-PGE Province in Western Australia, while Pyramid would target tier-1 gold discoveries in Victoria and Western Australia.
Healius buys Axis Diagnostics, rebrands as Lumus Imaging
Healius Limited (ASX:HLS), the country’s leading healthcare company, has announced the acquisition of Axis Diagnostic Holdings Pty Limited, a high-quality Queensland-based imaging business.
The company also said that it has decided to unify its imaging businesses under one national brand. As part of this move, Healius’ diagnostic imaging division, Healthcare Imaging Services, and its sub-brands will be rebranded as Lumus Imaging.
The rebrand, which will begin with seven sites across NSW and the Australian Capital Territory (ACT), will see a more robust customer focus, improvements to the business' online presence, and delivery of a more modern service, the company said.
Following the announcement, shares of Healius gained as much as 1.3% to AU$4.69.