Vocus, M2 Merger to Create 4th Largest Australian Telecom

Marcus Jacob
28 Sep, 2015
New York City

In thin trading, Australian market indexes closed higher despite the weakness in iron ore spot market. Banks led the rally in the benchmark index. Metcash was in focus on the expectation of a turnaround plan tomorrow.

[R]5:30 PM Sydney, Australia – In thin trading, Australian market indexes closed higher despite the weakness in iron ore spot market. Banks led the rally in the benchmark index. Metcash was in focus on the expectation of a turnaround plan tomorrow.[/R]

Australian market indexes opened lower but managed to turn around and closed higher on a sharper rebound in energy stocks.

Australian dollar closed at 70.21 U.S. cents and in stock trading turnover declined to 613 million shares worth $3.9 billion.

At close, the ASX 200 Index surged 71.40 or 1.4% to 5,113.50 and the broader All Ordinaries Index increased 68.40 to 5,145.10.

In commodities trading, gold slid US$1 to US$1,146 an ounce and Brent crude future for immediate month delivery fell 63 cents to US$47.97 a barrel.

IPO

Ryder Capital Limited closed unchanged at $1.01 after the investment company priced its stock at $1.

The stock opened at $1.01 and closed at $1.01.

Australian Stock Movers

FlexiGroup Limited gained 0.8% to $2.42 after the Australian Financial Review reported leasing and rental financing services provider plans to acquire financing business of New Zeland-focused Fisher & Paykel’s for about NZ$300 million or $272.7 million.

Metcash Limited closed unchanged at $1.08 after the supermarkets operator is expected to announce a turnaround plan tomorrow at an investor’s day conference.

Vocus Communications Limited plunged 7.4% to $6.01 after the communications services provider agreed to acquire its rival M2 Group Ltd for $1.3 billion to build country''s fourth-largest telecom company with a market value of about $3 billion.

M2 Group Ltd stock surged 13.4% to $9.55.