Macquarie Bank will be hoping there's no more 'events' to spook markets as the company heads towards an October meeting of shareholders that will vote on the long awaited plans to create a non-operating holding company structure.
The extraordinary general meeting will be held on October 25 and an explanatory memorandum will be sent to shareholders next month.
The bank has in-principle approval from the principal bank regulator, the Australian Prudential Regulation Authority (APRA), for the restructure.
On a statement to the ASX yesterday Macquarie said it had also obtained a term bank facility for $8 billion from a syndicate of major international and Australian banks that will be used for acquisitions by the holding company, to be called Macquarie Group Ltd.
Chairman, David Clarke, said the term funding facility would have maturities ranging from one to five years.
The funds will used by Macquarie Group Ltd for the acquisition of investment banking businesses and some other non-banking activities from Macquarie Bank Ltd.
The facility is expected to be drawn down later this year once the new structure is in place.
Mr Clarke said in the statement that under the proposal, Macquarie Group Ltd would be regulated by APRA as a non-operating holding company.
He said Macquarie's strong emphasis on risk management would continue to apply throughout the group.
Macquarie Bank Ltd will become a wholly-owned subsidiary of Macquarie Group Ltd and remain a licensed Australian bank.
Mr Clarke said Macquarie Group Limited's Board and Executive Committee would comprise the same members as those currently serving on the Board and Executive Committee of Macquarie Bank Limited.
"Under the proposal, Allan Moss, who is currently Managing Director and Chief Executive Officer of Macquarie Bank Limited would become Managing Director and CEO of Macquarie Group Limited and Richard Sheppard who is currently Deputy Managing Director of Macquarie Bank Limited would be appointed Managing Director and CEO of Macquarie Bank Limited, following the establishment of the NOHC.
"David Clarke would remain Chairman of Macquarie Bank Limited and would become Chairman of Macquarie Group Limited."
But Mr Clarke will move from being an executive chairman, to a non-executive role. Macquarie shares recovered by around 10% yesterday or$6.01 to $70.75, still a long way from the halcyon days of $97 a share earlier this year.
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The much suggested buyback from regional Pay TV operator, Austar, has been set at $300 million after the company reached an agreement with its banks to fund the deal.
It's actually a positive sign that capital management moves haven't been taken off the agenda in Australia by the lock up in credit markets, especially around companies with moderate to low credit ratings.
Austar said yesterday the deal will allow it to return about 23 cents per ordinary security to investors.
Liberty Global, which owns 53% of the company, is in line for just over half the return.
Austar said the deal struck with banks will allow it to increase its senior debt facilities to $850 million, under favourable conditions.
The return was first suggested earlier this year by the company as an option to be considered if certain corporate discussions didn't proceed.
They turned out to be takeover talks involving Foxtel which failed over price: Liberty Global wanted around $2 for its Austar stake, Foxtel wanted to pay around $1.85 to $1.90.
The capital return was approved at Austar's annual general meeting in late May, but was deferred until appropriate financing terms could be reached. A Tax Office ruling is still needed.
Chief executive, John Porter, said in a statement to the ASX that despite volatility in international debt markets, the company had been successful in its negotiations.
"While recent weeks have seen a significant contraction in international debt markets, Austar's financial and operational strength and great growth prospects have allowed for a further improvement in our senior debt arrangements," Mr Porter said.
"We are delighted to have such a great working relationship with our senior banks who have all been very supportive of our business.
The company also lost four senior executives yesterday in an expected reshuffle while another 30 jobs will go in a move to save around $4 million or more a year.
The losses are linked to AUN's failure to win a regional broadband contract.
Austar shares ended at $1.46, up 4c yesterday.
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Coca-Cola Amatil has moved one small step towards disentangling itself from South Korea with the signing of a definite sale agreement with LG Household & Health Care Ltd.
In a statement yesterday CCL said it expects to earn proceeds of $520 million to $545 million from the sale of its South Korean business.
CCA said the final price will be determined following the completion of an independent third party review of the fiscal 2007 accounts of Coca-Cola Korea Bottling Company.
"Under the terms of the agreement, completion of the transaction is expected to take place in late October 2007, subject to the satisfaction of certain conditions including Korean regulatory approvals.
"It is proposed that The Coca-Cola Company will acquire, in a separate and subsequent transaction, a 10% minority equity stake in CCKBC from LGH&H. The Australian Stock Exchange has indicated it will look favourably upon granting CCA a waiver of the requirement under the Australian Stock Exchange Listing Rules for CCA to obtain the approval of its shareholders for the transaction."
CCL shares edged up 12c to $9.11 in yesterday's rebounding market.
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