Australian clean energy and Underground Coal Gasification (UCG) company, Carbon Energy Limited (ASX:CNX)(PINK:CNXAF), completed a share placement conducted by Southern Cross Equities to raise A$32 million. Strong interest from both domestic and overseas institutional and sophisticated investors has resulted in the issue being oversubscribed.
Sydney, June 5, 2009 AEST (ABN Newswire) - US stocks rose overnight led by financial stocks. The soaring oil and other commodities prices also helped to lift the market.
The Australian share market closed lower. The benchmark S&P/ASX200 index was down 82.6 points, or 2.06 per cent, at 3934.6, while the broader All Ordinaries index fell 76.8 points, or 1.92 per cent, to 3932.5. Resources stocks will benefit from the rise in commodities prices, but could be weighed down by the failure of investment deal between Rio Tinto and Chinese government backed Chinalco.
Key Economic Facts and Figures
The Australian Bureau of Statistics said Australia's seasonally adjusted balance on trade in goods and services swung to a deficit of A$91 million in April from a surplus of A$2.3 billion in March. The surprise deficit in April was the first in nine months, due to a large slide in exports as coal and iron ore prices weakened.
The Australian Industry Group/Housing Industry Association on Friday will release their Australian performance of construction index for May.
M&A News
Rio Tinto (ASX:RIO) is in a trading halt today pending an announcement. Rio is widely expected to announce a multibillion rights issue. Overnight shares in Rio were hit by the news that Rio informed Chinalco it could not proceed with the US$19.5 billion deal as shareholders strongly oppose the proposal. It is speculated that Rio Tinto would consider talks with BHP Billiton (ASX:BHP) about asset sales or joint ventures. RIO Tinto said today it will get nearly $US6 billion from BHP Billiton as part of an iron ore joint venture in the Pilbara region.
OZ Minerals (ASX:OZL) is expected to receive a $US1.2 billion recapitalization offer led by the Royal Bank of Canada and RFC Group. OZ Minerals said yesterday it had "not received a recapitalisation proposal which it considers to be a superior alternative to the China Minmetals transaction".
It is reported that Elders Ltd. (ASX:ELD) and AWB Ltd. (ASX:AWB) are looking to sell their joint venture Hi-Fert fertilizer business.
Important Corporate News
Qantas (ASX:QAN) is expected to post a net profit of over A$85 million this year, After posting a record $969 million after-tax profit last year, according to an average of forecasts from seven broking houses.
Ports and rail group Asciano's expressions of interest for its asset sales program are due to be lodged today.
AGL Energy (ASX:AGK) has successfully refinanced its 2009 and 2010 debt maturity obligations. The new facilities, which total A$800 million in two tranches, are for a term of three years maturing in June 2012.
Babcock & Brown Power (ASX:BBP) has signed a two-year deal worth A$62 million to sell power to BHP Billiton's (ASX:BHP) Olympic Dam in South Australia. The two-year contract is "an important step in the company's efforts to reduce earnings volatility", BBP said yesterday.
Australian clean energy and Underground Coal Gasification (UCG) company, Carbon Energy Limited (ASX:CNX)(PINK:CNXAF), completed a share placement conducted by Southern Cross Equities to raise A$32 million. Strong interest from both domestic and overseas institutional and sophisticated investors has resulted in the issue being oversubscribed.
BC Iron (ASX:BCI) has entered into a joint venture with Fortescue Metals Group (ASX:FMG) to develop the Nullagine iron ore project. The pair plan to commence iron ore production from Nullagine in early 2010.
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.l@abnnewswire.net
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