Viterra Acquires ABB Grains; AWB Net Plunges

123jump.com Staff
19 May, 2009
New York City

Australian benchmark index closed higher on a rise in metals and energy prices. Canada based Viterra offered A$1.6 billion for ABB Grains Ltd in cash and stock. AWB Ltd first half net declined 62%. Lion Nathan reported first half profit increased 7%.

[R]7:00 AM Sydney, May 20 – Australian benchmark index closed higher on a rise in metals and energy prices. Canada based Viterra offered A$1.6 billion for ABB Grains Ltd in cash and stock. AWB Ltd first half net declined 62%. Lion Nathan reported first half profit increased 7%.[/R]

The stocks in Australia closed higher tracking gains in New York trading and higher oil and mental prices contributed to the gain in the indexes.

ASX 200 index in Australia increased 81.70 or 2.19 % closed to 3,817.30.

Canada based Viterra Inc agreed to acquire ABB grain Ltd for A$1.6 billion for cash and stock and compete for growing markets in Asia. The deal values ABB at least A$9.11 a share. ABB will pay a special dividend of A$0.41 to its current shareholders.

Genuity Capital Markets and Macquarie Capital Advisers are acting as financial advisers to Viterra and Torys LLP and Freehills as its legal advisers.

J.P. Morgan is acting as ABB''s exclusive financial adviser and Johnson Winter & Slattery as legal adviser.

ABB Grain Ltd closed up 1.5% to A$8.60.

Gainers & Losers

AWB Ltd. declined 10 cents to A$1.05 after it reported 62% decline in first half profit to A$8.5 million as the company had forecasted earlier.

Lion Nathan Limited increased 3 cents to A$11.68 after it reported first half profit increased 7% to A$176 million. The company is in the process of being acquired by the Japanese brewer Kirin Holdings also reiterated its revised full year profit outlook of A$305 million.

James Hardie Industries NV closed up 5 cents to A$4.39 after it reported full year operating profit declined 44% to $96.9 million. The company canceled its full year profit and forecasted that the company is not likely to pay dividend until the economic conditions improve significantly.

For the fourth quarter net revenues declined 23% to $241.3 million and net loss decreased to $129.60 million from $146.9 million.

ASX 200 Index Movers

Goodman Group Fund led the decliners in the ASX 200 index of 17.5% followed by losses in Karoon Gas Australia Ltd of 12.8%, in NRW Holdings Limited of 11.8%, in Elders Limited of 9.5% and in St Barbara Limited of 9.4%.

Mincor Resources NL led gainers in the ASX 200 index with a rise of 24.1% followed by gains in Kagara Ltd of 21.9%, in Energy World Corp Ltd of 15.0% and Sundance Resources, Inc. of 13.6%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 251.60 or 2.78% to 9,290.29, Hang Seng index in Hong Kong increased 521.12 or 3.06% closed to 17,544.03, CSI 300 index in China higher 29.51 or 1.05% closed to 2,840.08. ASX 200 index in Australia increased 81.70 or 2.19 % closed to 3,817.30. The KL Composite index in Malaysia higher 11.48 or 1.13% closed to 1,023.49.

The Kospi Index in South Korea increased 41.53 or 2.99% to close at 1,428.21. SET index in Thailand closed higher 16.25 or 3.01% to 556.47 and JSE Index in Indonesia increased 82.45 or 4.57% closed to 1,886.02. The Sensex index in India increased 17.82 or 0.12% closed to 14,302.03.