Roll road operator, Transurban Group, says there’s been no new approaches from possible bidders from Canada and Australia.
The group, which is the country’s biggest toll road operator (it owns the M2 in Sydney and is eyeing the bankrupt Lane Cover Tunnel) told the market yesterday it hadn’t received any further takeover approaches from two Canadian pension funds since rejecting their $6.8 billion offer last November.
Nor has the company heard from the Australian Future Fund, which has indicated it could be interested in joining the two Canadian groups in an offer.
In a statement to the ASX yesterday The directors of Transurban repeated previous comments that the $5.25 a share proposal from Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan undervalued the group.
"Almost four months have passed since the original proposal and there have been no further approaches by CPPIB, OTPP or the Future Fund," directors said.
"Since receiving the proposal the Transurban Board has revalidated the Group’s internal financial model and confirmed its view of the value of Transurban. Transurban’s corporate advisor, Lazard, has completed a separate review of this work and concur with the Board’s view of value.
"The Board has also had discussions with a number of other shareholders in the period post receipt of the proposal from CPPIB/OTPP and noted their views of the incomplete nature and inadequate pricing of the October 2009 proposal."
Transurban reported yesterday that net profit for the December half rose to $54.2 million from $3.2 million in the first half of 2008-09 when asset write downs and other costs took their toll.
Transurban securities closed at $5.10 yesterday, up 4c on the day.
They had fallen to $4.99 during the day, the lowest they have been since the Canadian bid came last November.
The company said an interim distribution of 12 cents per stapled security will be paid.
"Transurban has provided guidance that distributions are expected to total 24 cents for the financial year ended 30 June 2010, which represents 9 per cent growth on the FY09 distributions of 22 cents," the company said.
And shares in NZ building products giant, Fletcher Building, jumped by more than 4% yesterday as the company signalled it could be through the worst.
The shares rose to $A6.23, a rise of 25 cents on the day, or 4.2%.
That out performed the wider market which rose by just over 2%.
Interim dividend of 14.0 NZ cents per share is in line with the guidance provided at the AGM last November.
The jump came despite the company revealing a 10% fall in first half earnings, thanks to slower construction and lower steel product prices in New Zealand and Australia.
As well the company felt the continued weakness in housing and construction in the US and Europe, where its Formica range of products have been hit hard in the recession in these sectors.
Net income slid to NZ$154 million in the latest half year, from NZ$172 million a year earlier, according to a statement to the NZ and Australian exchanges
The company indicated that 2010 earnings could be up by as much as 12% on 2009.
It raised its forecast thanks to government stimulus programs and signs of recovery in Australia and New Zealand, its biggest markets.
These will help offset persistent weakness in the construction markets of Europe and North America.
Total sales for the group were down 10% to $NZ3,393 million as a result of subdued trading conditions in most markets.
The company said that "in particular, the Steel division experienced a 25 percent decline in sales due to lower volumes and prices.
"Sales in the Laminates & Panels division were 10 percent lower due to reduced demand and the currency translation effects of the stronger New Zealand dollar.
"Concrete sales in New Zealand and Australia were down 13 percent as a result of weak demand, particularly in New Zealand.
"Partly offsetting this sales decline were stronger insulation sales in Australia and New Zealand, which were up 39 percent due to government stimulus measures.
"Strong activity levels in the New Zealand construction business resulted in sales growth of 6 percent."
“We have had a noticeable pickup in trading activity in the October to December period” in Australian and New Zealand housing markets, Chief Executive Officer Jonathon Long said in the statement.
“In Europe, the outlook continues to be subdued” and housing inventory in the U.S. needs to fall before there will be a recovery there, he added.
The company said yesterday that full-year profit before one-off costs should be in the NZ$278 million to NZ$303 million range.
In November, the company said underlying earnings for 2010 would be closer to NZ$261 million.
"The current consensus range of analyst’s forecasts for net earnings after tax, excluding unusual items, for the full year is $NZ278 million to $NZ303 million.
"Based on current trading performance, and assuming no further deterioration in key markets, net earnings should fall within this range," FBU told the market yes
