ABN Newswire

Elders (ASX:ELD) Negotiations for Woodchip Prices To Japan Concluded

newsroom@abnnewswire.net — Wed, 14 July 2010 12:50:37 GMT

Agribusiness Elders Limited (ASX:ELD) said negotiations for the calendar year 2010 benchmark price for Australian plantation grown Tasmanian bluegum woodchip for export to Japan have concluded with agreement that existing prices be maintained.

The existing price of A$207.4 free on board (FOB) per bone dry metric tonne is applicable for sales from 1 January 2010 to 31 December 31 2010 during which period Elders Forestry is contracted to supply woodchips to its paper manufacturer customers in Japan.

Contracted volumes for the period have been increased by more than 12 per cent to over 370,000 green metric tonnes per annum.

Chief operating officer of Elders Forestry, Vince Erasmus, said this was a positive outcome in the current market circumstances that global demand for woodfibre has continued to be softer than pre-GFC (global financial crisis) levels.

Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net

PaperlinX (ASX:PPX) Becoming Solely a Merchant

newsroom@abnnewswire.net — Tue, 13 Apr 2010 10:17:03 GMT

Australian paper merchant and manufacturer PaperlinX Ltd (ASX:PPX) said today that it is in the final stage of exit from its Tasmanian manufacturing operations.
It will close its Burnie Mill in Tasmania, with the balance of operations already closed. On completion of the closure, PaperlinX will solely become a merchant with business distributing paper, sign and display, graphics solutions and industrial packaging to a wide range of customers in Australia, New Zealand and Asia, Europe and North America.

Last year, PaperlinX completed an A$700 million sale of its manufacturing arm, Australian Paper, to Japan's Nippon Paper (TYO:3893). The sale immediately reduced the company's debt by A$500 million.

PaperlinX said the overall total net cash cost of its exit from Tasmania is expected to be around A$10 million to A$20 million. PaperlinX managing director, Tom Park, said the exit from Tasmania would cost the company less than it expected originally.

The company now is focussed on completing refinancing programme and on ensuring its competitive position is as robust as it can be in the uncertain economic times.

Michelle Liang
Asia Business News Asia Bureau
TEL: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net

Vinda International Holdings Limited (HKG:3331) Positive Profit Alert

newsroom@abnnewswire.net — Mon, 8 Mar 2010 15:42:07 GMT

The board of directors (the "Board") of Vinda International Holdings Limited (HKG:3331) is pleased to announce that, based on the preliminary review of the unaudited annual consolidated management accounts of the Company and its subsidiaries (together, the "Group"), it is estimated that the Group's consolidated net profit for the financial year ended 31 December 2009 will represent a substantial growth over and above the audited net profit for the financial year ended 31 December 2008 of HK$165,911,568. The substantial profit growth is attributable to (i) the successful execution of the Group's procurement strategies resulting in reduction in raw material costs; (ii) the fact that the Group's sales has maintained a double-digit growth; and (iii) the successful execution of the Group's marketing and pricing strategies.

This positive profit alert is made after the Company's preliminary assessment of its draft unaudited consolidated management accounts as at 31 December 2009, which is subject to final detailed review or adjustment by the Company's auditors.

Since the Company is still in the process of compiling its audited financial statements for the year ended 31 December 2009, shareholders of the Company and potential investors are urged to review in detail the Company's results announcement for the year ended 31 December 2009, which is expected to be issued on or before 30 April 2010.

Shareholders and potential investors should exercise due care in dealing in the shares of the Company.

By order of the board
Vinda International Holdings Limited
Li Chao Wang
Chairman

As at the date of this announcement, the executive Directors are Mr. Li Chao Wang, Ms. Yu Yi Fang, Ms. Zhang Dong Fang and Mr. Dong Yi Ping; the non-executive Directors are Mr. Leung Ping Chung Hermann, Mr. Johann Christoph Michalski and Mr. Chiu Bun; and the independent non-executive Directors are Dr. Cao Zhen Lei, Mr. Kam Robert, Mr. Hui Chin Tong Godfrey and Mr. Tsui King Fai.

This announcement is made in accordance with rule 13.09(1) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

Paul Tsang
Vinda International Holdings Limited
Tel: +852-2366-9853 
Emial: tsang.paul@vinda.com

Asian Markets Overview of December 23

newsroom@abnnewswire.net — Wed, 23 Dec 2009 13:30:16 GMT

US stocks ended higher overnight on a bigger-than-expected rise in existing home sales for November. The used-home sales jumped 7.4 per cent, having increased more than double the economists' expectations.

The US data also boosted the European market, which hit a 14-month closing peak on Tuesday. The U.S. dollar extended its gains, hitting a two-month high against the yen.

Asian markets finished mostly higher Tuesday. Japanese exporters were helped by the stronger US dollar against yen and pushed the Tokyo stocks to a 3-month closing high. But Shanghai market was 2.3 per cent lower as metals shares fell on recent losses in gold prices.

Company News

The European Commission has approved Canon Inc.'s (TYO:7751) planned acquisition of major Dutch printer maker Oce NV (PINK:OCENF) with 730 million euros. The commission said that the deal will "not significantly impede effective competition" in the EU market as Canon and Oce would continue to face several strong competitors in all market sectors.

Toyota Motor Corp. (TYO:7203) and Volkswagen Group Japan KK said Tuesday they have agreed to end a contract of marketing the German partner's Volkswagen vehicles in Japan. Toyota will stop distributing the German partner's vehicles to its domestic dealers by the end of 2010. Volkswagen will market its products directly through these dealers. Toyota said the cancelling of the contract, signed in 1991, wasn't related to Volkswagen AG's (ETR:VOW) recent decision to partner Suzuki Motor Corp. (TYO:7269).

China Citic Bank Corp. (HKG:0998) said Wednesday it has approved Spanish Bank Banco Bilbao Vizcaya Argentaria SA's (NYSE:BBVA) plan to raise the H-share stake it owns in the lender to 15%.BBVA holds 10 per cent interest in Citic Bank and also has an option, which came due Dec. 3, for an additional 5% stake at a 10% premium to Citic Bank's initial public offering price of HK$5.86.

South Korea's Daewoo Shipbuilding & Marine Engineering (SEO:042660), the world's No.2 shipbuilder, said it has won a US$650 million order for 10 crude oil carriers from Greece's Almi Tankers. The company is to deliver the 10 Suezmax oil carriers to Almi Tankers between the end of 2011 and November 30, 2012.

Guangzhou R&F Properties Co. (HKG:2777), Country Garden Holdings Co. (HKG:2007) and Agile Property Holdings Ltd. (HKG:3383) jointly won a bid for the Guangzhou Asian Games Town site in a government land auction. The three property firms won the bid for CNY25.5 billion, making it the most expensive site in mainland China. The winning bid was 55% higher than the reserve price of CNY16.50 billion.

Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net

Australian Market Report of December 8: Weighed by Weaker Commodities

newsroom@abnnewswire.net — Mon, 7 Dec 2009 18:20:32 GMT

Australian market Monday ended lower in a thin trade led by resources stocks, as commodities prices dropped on a sharp rise in US dollar. At the close, the benchmark S&P/ASX200 index fell 25.7 points, or 0.6 per cent, at 4676.5, while the broader All Ordinaries lost 26 points, or 0.6 per cent, to 4695.2.

Key Economic Facts and Figures

The Australian Industry Group/Housing Industry Association Performance of Construction Index (PCI) fell 3.3 points to 47.6 points in November, below the 50-point level separating expansion and contraction. The decline was driven by a significant fall in apartment building and a further decline in engineering construction. The AiGroup's director of public policy, Dr Peter Burn, says further falls are expected over the next few months as the First Home Owners Boost expires totally on December 31.

ANZ job survey showed that the number of jobs advertised in major newspapers and websites rose 5.2 per cent in November from October, seasonally-adjusted. The report also showed total job ads were 12.3 per cent higher from the recent low in July, although still down 34.2 per cent from November 2008. ANZ acting chief economist Warren Hogan said the unemployment rate appears to have stabilized.

Today NAB is scheduled to release its business survey of November. Australian Bureau of Statistics releases balance of payments and international investment data for September quarter. Dun and Bradstreet will unveil its business expectations survey.

M&A News

ANZ Banking Group (ASX:ANZ) announced two further milestones in the growth of its business in Vietnam with the completion of its acquisition of The Royal Bank of Scotland Group (NYSE:RBS) business and the opening of its tenth branch in Vietnam in Ho Chi Minh City. ANZ now have completed the acquisition in the Philippines and Vietnam, two of the six markets to transition to ANZ ownership. The bank expects to complete the next acquisition in Hong Kong before the end of March 2010 and the remaining markets by mid-2010.

Origin Energy Ltd (ASX:ORG) was unable to take the full stake from Woodside Energy Ltd for A$712.5 million because another joint venture partner, Benaris International Pty Ltd, decided to exercise its pre-emption right in relation to some of its interests in the project. Origin plans to take a smaller stake for A$507.2 million instead.

Important Corporate News

Babcock & Brown Power (ASX:BBP) reached an agreement to settle a A$444 million debt with Babcock & Brown International. BBP will pay up to A$37.7 million in cash and proceeds from the planned sale of BBP's 50 per cent stake in the Oakey power station in Queensland. BBP will also issue 80.73 million shares to its former parent.

PaperLinx (ASX:PPX) will close its Wesley Vale operation and part of the operations at Burnie, after a 10-month review of the businesses. PaperlinX will shed 252 jobs following the planned closure of most of its Tasmanian manufacturing plants. PaperlinX said it will become solely a merchanting company, with businesses distributing paper, sign and display and graphics materials and industrial packaging to a wide range of customers in Australia, New Zealand and Asia, Europe and North America.

Syrah Resources (ASX:SYR) has signed a Heads of Agreement to form an exploration and mining joint venture with Mashoura Co, Saudi Arabia. The Syrah and Mashoura joint venture will continue to grow a mineral prospect portfolio in Saudi Arabia on an ownership basis of 80 per cent Syrah and 20 per cent Mashoura.

Rio Tinto (ASX:RIO) said yesterday it will be focusing the majority of its investment in carbon capture and storage technology on the Hydrogen Energy California project with energy giant BP (NYSE:BP). On the other hand, Rio Tinto sold its 50 per cent stake in a hydrogen power project in Abu Dhabi to BP for an undisclosed sum.

Australian Market Report of November 20: A Drop in Risk Appetite

newsroom@abnnewswire.net — Fri, 20 Nov 2009 13:00:08 GMT

US stocks fell for the second day after a downgrade of technology companies such as Intel. Energy and materials shares also showed losses as commodities prices tumbled.

On Friday the Australian market opened in a negative territory after a fall in Wall Street. Yesterday the local shares closed marginally higher supported by resources sector. The benchmark S&P/ASX200 index closed 10.2 points, or 0.22 per cent higher, at 4749.2 points, while the broader All Ordinaries index gained 8.2 points, or 0.17 per cent, to 4767.8 points.

The Australian dollar continued to sink this morning and opened below $US0.9200 as weaker commodities prices. US dollar's rebound also weighed on the risk sensitive Aussie dollar. At 7am AEDT, the dollar was trading at $US0.9189/90.

Key Economic Facts and Figures

Reserve Bank assistant governor Guy Debelle said overall margins on variable rate housing lending relative to bank funding costs have actually declined a little over the past two years. Banks have to pay more for money sourced from overseas and they are paying substantially more interest on Australian deposits.

The Organisation for Economic Cooperation and Development (OECD) said in its Economic Outlook that it expected Australia to experience a relatively more robust recovery, having been affected less by the global crisis than most other OECD countries. It is forecasting economic growth of 0.8 per cent in 2009, rising to 2.4 per cent in 2010. But the OECD also expects Australian unemployment to peak at 6.3 per cent in 2010.

M&A News

ANZ (ASX:ANZ) today said in a statement that it has agreed to sell its Custodian Services business in Australia and New Zealand to JP Morgan as the bank is refocusing its institutional business on core banking priorities in Australia, New Zealand and Asia. Sale completion is expected before December 31, subject to regulatory approvals, and will be followed by a progressive transfer of business and staff during 2010.

Amcor Ltd (ASX:AMC) noted an announcement lodged by subsidiary AMVIG Holdings Ltd (HKG:2300) with the Hong Kong Stock Exchange, advised that the proposed Brilliant Circle transaction will not be proceeding as proposed after the results of the extraordinary meeting held on November 19. Separately, Amcor yesterday said it will raise US$850 million by issuing fixed coupon notes to US private investors.

Medic Vision Ltd (ASX:MVH) has assessed two companies with which it had signed heads of agreements. The first was the purchase of 100 per cent of a digital marketing and communications company, cBox Pty Ltd, and the other was for the purchase of 51pc of a company that was synergistic with Medic Vision's Red Paragon subsidiary. The company decided not to proceed with the latter.

Important Corporate News

Sims Metal Management Ltd (ASX:SGM) is to raise A$400 million via a fully underwritten placement. The company will also provide an offer to eligible shareholders of up to A$15,000 of shares through a share purchase plan (SPP). The target amount to be raised under the SPP is A$75 million and it is not underwritten. The proceeds will be used to repay debt and fund working capital.

Woodside Petroleum (ASX:WPL) expects a cost increase of between A$672 million and A$1.1 billion at its Pluto liquefied natural gas project in Western Australia after a review of the cost and schedule. The cost of the project is likely to be 6 per cent to 10 per cent above its original July 2007 estimate of A$11.2 billion due to lower than budgeted productivity in both onshore and offshore construction.

Australian Market Report of August 31: Upbeat Earnings and Outlooks

newsroom@abnnewswire.net — Mon, 31 Aug 2009 13:00:40 GMT

US stocks were lower Friday over consumer data. Commerce Department said that consumer spending rose mildly in July, while personal income was unchanged. The downbeat data of US consumer sentiment also weighed on the market.

The Australian market ended another strong week last Friday. The rise was largely helped by favourable corporate earnings and outlooks. At the close, the benchmark S&P/ASX200 index added 38.8 points, or 0.9 per cent, at 4489.6 points. The broader All Ordinaries index was up 37.8 points, or 0.9 per cent, to 4495.9 points.

Key Economic Facts and Figures

The Australian Bureau of Statistics (ABS) will unveil its GDP figures on Wednesday. Economists anticipate the GDP to grow by 0.7 per cent in the June quarter, above the Reserve Bank of Australia's (RBA) mid-August prediction of 0.25 per cent in year to June.

Today the RBA releases its financial aggregates data for July today. The ABS releases its business indicators data for the June quarter. TD Securities and the Melbourne Institute release the August inflation gauge. The Housing Industry Association publishes its new home sales report for July.

M&A News

Elders Limited (ASX:ELD) has requested a trading halt pending finalization of the terms of a comprehensive recapitalization and refinancing. Elders said it has entered into binding purchase and sale agreement with Gunns Limited (ASX:GNS) for the sale of its ITC Timber Pty Ltd, an entity which holds Elders' hardwood timber processing operations as well as its 50% stake in Smartfibre Pty. Ltd. Gross proceeds of the deal are expected to be about A$100 million.

Print and media services company PMP Limited (ASX:PMP) has entered into an agreement to acquire a magazine distribution business via Gordon and Gotch, New Zealand's largest independent magazine distributor.

Important Corporate News

ANZ Bank (ASX:ANZ) said underlying profit after tax is tracking slightly above comparable period in 2008, while cash profit is tracking broadly in line with previous year. The bank said its strong revenue trends had continued, driven largely by the performance of the institutional division, ANZ said.

Felix Resources (ASX:FLX) has reported a 42 per cent rise in annual net profit for the year to June 30 to A$267.6 million, up from A$188.5 million in the previous corresponding period. The company said it is in good shape going into 2010 provided there are no more global financial shocks which may cause a slowdown like that suffered in late 2008.

Gunns Ltd. (ASX:GNS) reported a flat result for the year to June 30. Net profit slid 1.0 per cent to A$56.2 million from A$59.2 million a year earlier. The company declared a final dividend of two cents per share, compared to four cents in the prior year. Gunns chairman John Gay said the outlook for Gunns' forest products business remained difficult, but timber operations are well positioned to benefit from any recovery in the domestic construction industry.

PaperlinX (ASX:PPX) decided against paying a final dividend as it reported a A$798.2 million annual loss affected by impairment charges, a loss on the sale of its Australian paper operation, and related restructuring costs. The paper manufacturer posted a profit of A$72.2m a year earlier.

Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net

Australian Market Report of July 22: Winning Streak Continues

newsroom@abnnewswire.net — Wed, 22 July 2009 13:00:25 GMT

Wall Street posted modest gains on Tuesday in choppy trade as investors started to be cautious after the recent rallies inspired by earnings results. In addition, US Federal Reserve Chairman Ben Bernanke said in testimony the pace of decline appears to have slowed significantly, but the financial system remained stressed and the labour market had continued to deteriorate.

Australian shares yesterday ended higher for the sixth consecutive day. The benchmark S&P/ASX200 was 0.4 points or 0.01 per cent higher at 4040.7, while the broader All Ordinaries gained 4.1 points, or 0.1 per cent, to 4048.3 points. Earnings reports of Australian companies will attract more attention in recent period and an optimistic mood is expected during the local reporting season.

Key Economic Facts and Figures

Australian new motor vehicle sales rose by 5.7 per cent in June, seasonally adjusted, the biggest monthly rise in four and a half years, according to the Australian Bureau of Statistics (ABS). Sales were up 5.4 per cent in May and advanced 2.5 per cent in April. The increase in car sales suggests that the domestic economy is on its way of recovery.

The Reserve Bank of Australia (RBA) released its July board meeting minutes, which showed that the recent improved domestic data had helped to convince the RBA to hold its official rates at 3 per cent for the third month. The Australian Bureau of Statistics (ABS) is due to publish its second quarter consumer price index data on Wednesday.

M&A News

Lihir Gold (ASX:LGL) has put its Ballarat gold mine in Victoria up for sale and has received expressions of interest from a number of parties. It did not disclose the possible purchase price or identity of potential buyers. The company is expected to book a big loss from the sale of its Ballarat goldmine assets.

Imdex Limited (ASX:IMD) and Coretrack Limited (ASX:CKK) announced a merger under which Imdex would acquire all the shares and options in Coretrack. After the merger, Imdex would be owned 82 per cent by current Imdex shareholders and 18 per cent by Coretrack shareholders and option holders.

Important Corporate News

National Australia Bank (ASX:NAB) says it plans to raise A$2 billion through a fully underwritten institutional share placement at a price of at least A$21.20 per share. The bank also says it raise up to A$750 million through a share purchase plan.

BHP Billiton (ASX:BHP) reported a 10 per cent fall in iron ore output in the June quarter on the previous year and said China's inventory build-up of commodities was almost complete, with restocking starting to occur in North American markets.

Harvey Norman (ASX:HVN) has reported a 2 percent rise in fourth-quarter sales, excluding the benefit of new store openings. The quarterly sales increase was the strongest performance in 12 months, it was still well below analyst forecasts for a lift of up to 9.3 per cent.

Investment firm Amcil Ltd (ASX:AMH) has posted a 66.5 per cent drop in annual net profit due to impairment charges related to share market volatility caused by the global financial crisis. Profit after tax for the year ended June 30 was A$4.6 million, down from A$13.9 million in the previous corresponding period.

Paper manufacturer PaperlinX (ASX:PPX) has downgraded its earnings guidance for 2008/09 due to the sale of properties in the Netherlands and company restructuring. The company now expects a result around 50 per cent lower than in the prior year. This is down from earlier guidance of 2008/09 earnings 30-35 per cent lower than in 2008.

Woolworths (ASX:WOW) said today full-year sales rose 7.5 per cent after solid results across its business. Total sales climbed to A$49.6 billion.

Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net

Australian Market Report of June 29: Caution Ahead of Reporting Season

newsroom@abnnewswire.net — Mon, 29 June 2009 13:00:35 GMT

Wall Street shares ended mixed on Friday. Dow index was lower as investors locked in profits from the rally in previous trading session, while the S&P 500 and tech-heavy Nasdaq posted modest gains. The US Commerce Department reported consumer spending rose for the first time in three months. Investors would look towards June's jobs data to be released this week.

The Australian share market closed firmer on Friday led by financial stocks. The benchmark S&P/ASX200 index was up 47.8 points, or 1.24 per cent, to 3903.8 points, while the broader All Ordinaries index advanced 48 points, or 1.25 per cent, to 3899.5 points. Trading volume is expected to remain at a low level before the reporting season.

Key Economic Facts and Figures

Analysts expect Australian companies earnings per share will fall by 22 per cent for the full 2008-09 financial year, just short of the 26.2 per cent drop in EPS at the height of the 1991 recession. UBS chief equities strategist David Cassidy has tipped a massive 29.9 per cent fall in EPS compared with the same period last year for the six months to June 30.

M&A News

Indophil Resources (ASX:IRN) said a number of parties are interested in the sale by Indophil of 34.23 per cent of its stake in the copper-gold Tampakan project in The Philippines. The company said the interested parties were "at the big end of town".

Wesfarmers Ltd (ASX:WES), owner of supermarket Coles, says it will sell 45 of its supermarkets and eight Liqourland stores to independent grocery group FoodWorks for A$35 million. Coles said the sale of the supermarkets will reduce overlap and free up funds for investment in its network of 718 remaining supermarkets and 623 Liquorland outlets.

Important Corporate News

Toll Holdings (ASX:TOL) has entered into a A$180 million three-year agreement with Chevron Australia to manage logistical services on the Gorgon gas project on Barrow Island off Western Australia. Toll's work will begin after the project receives all necessary government approvals and the final investment decision by the joint venture partners, expected in the second half of this year.

Furniture and electrical goods retailer Harvey Norman (ASX:HVN) has reported a better-than-expected response in its winter clearance in a further signs of recovery in the retail sector. Executive Chairman Gerry Harvey said sales were strong "right across the board".

PaperlinX (ASX:PPX) has completed the initial review of its Tasmanian paper manufacturing business, Tas Paper. CEO of PaperlinX, Tom Park said the review projected an unacceptable financial loss for Tas Paper in the current environment and will work with all key shareholders to develop models that may produce more positive future outcomes.

Virgin Blue (ASX:VBA) has released its preliminary operating statistics saying its domestic passenger numbers and international passenger numbers for the 11 months to May 2009 respectively increased by 5.1% and 68.6% from the previous year.

Orchard Property Ltd has proposed to recapitalise and restructure its publicly listed Orchard Industrial Property Fund (ASX:OIF) by placing securities with South African property group Growthpoint. Orchard said it would make a A$55.6 million placement of OIF units to Growthpoint, and internalise the fund's management.

Gunns Ltd (ASX:GNS) has found a potential joint-venture partner for its A$2.2 billion Tasmanian pulp mill. Gunns said the company involved has significant international experience in the pulp and paper sector. The Tasmanian timber company has continued to progress negotiations with project finance banks, with market conditions in the sector having recently improved.

Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net

Australian Market Report of June 2: Rise Despite GM's Bankruptcy

newsroom@abnnewswire.net — Tue, 2 June 2009 13:00:21 GMT

US stocks shrugged off the widely expected bankruptcy filing of General Motors and posted a massive rise overnight on a bullish sentiment. A series of better-than-expected economic data suggested a fast recovery from the recession. Investors were also encouraged by signs of manufacturing stabilization from China with figures showed that manufacturing sector continued to expand moderately in May.

The Australian shares were broadly higher. The benchmark S&P/ASX200 rose 76.4 points, or 2 per cent, at 3894.4, while the broader All Ordinaries gained 74.6 points, or 1.96 per cent, to 3887.9 points. Besides the strong lead from Wall Street, the rising commodities prices may also push up the market today.

Key Economic Facts and Figures

Tuesday the Reserve Bank of Australia will announce its rate decision after monthly board meeting. Most market economists expect the Reserve Bank board to keep the cash rate at 3 per cent today.

The Australian Bureau of Statistics will release balance of payments and international investment data for the March quarter, as well as building approvals data for April and government finance statistics.

M&A News

Talbot Group Investments has agreed to take a placement of 7.24 million shares in Robust Resources (ASX:ROL). The capital injection of A$2.534 million will give Talbot 15 per cent of the shares in the explorer.

PaperlinX (ASX:PPX) will formerly complete the A$700 million sale of its manufacturing arm, Australian Paper to Japan's Nippon Paper (TYO:3893). The sale will immediately reduce company debt by A$500 million. PaperlinX also warned that its 2009 reported EBIT (earnings before interest and tax) will be further depressed by around A$95 million in costs, which related to the bank and noteholder charges, consultants' costs to lenders, costs associated with the Australian Paper sale, and previously flagged foreign exchange losses and corporate overheads.

Macquarie DDR Trust (ASX:MDT) has completed the sale of three assets for a combined value of US$20.3 million to three different private purchasers. The combined sale price reflects a 4.8% discount to December 2008 book value.

Important Corporate News

Rio Tinto (ASX:RIO) said it has settled 2009 iron ore contracts with most Asian customers. The mining giant has finalised deals with South Korea's Posco (SEO:005490) and Taiwanese steelmakers China Steel Corp (TPE:2002) and Dragon Steel Corp to cut 2009-2010 iron ore prices by 33 per cent to 44 per cent. But the China Iron & Steel Association rejected the price cut reached between Rio Tinto and Nippon Steel.

Pacifica (ASX:PBB) says it expects an adverse impact on its 2009 earnings from the filing by General Motors for bankruptcy protection. The full financial impact is uncertain but will be dependent on the time GM remains under Chapter 11 protection.

Macquarie Group Ltd (ASX:MQG) says in a statement in response to ASX query that it is not aware of any reason or information not already announced that could have prompted a lift in its share price since late last week. The group today said it had raised A$1.2 billion through its institutional placement and share purchase plan.

Mt Isa Metals Limited (ASX:MET) has commenced on the Barbara Copper Prospect located approximately 50 kilometres north-east of Mt Isa. The drilling is planned to test for high grade sulphide copper mineralisation indicated at surface by historical copper workings and visible copper occurrences.

Following the initial successful surface sampling programme at its Amayapampa Gold Project in Bolivia, Republic Gold Limited (ASX:RAU) said that the sampling has been extended significantly due to continuing encouraging analysis results.

M2 Telecommunications Group Ltd (ASX: MTU) has today announced that it has executed an Asset Sale Deed to acquire all of the small and medium business assets and associated intellectual property of Commander Communications Limited. The acquisition is expected to raise the M2 Group revenues to more than A$350 million, resulting in an EPS increase in excess of 50%.

Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net