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Company Updates: MFG, RIO, UWL, ELD


Magellan Financial Group (MFG) announced yesterday that it would be launching an on-market share buy-back, to acquire up to 10 million ordinary fully paid shares, representing ~5.4% of shares on issue. MFG has appointed Barrenjoey and Ord Minnett to act as its brokers to execute the buy-back. MFG shares rose 3.9% to close at $14.40.


Rio Tinto (RIO) announced after market on Monday that it had made a non-binding proposal to the Turquoise Hill Board to acquire the remaining 49% of outstanding shares for C$34 cash per share (~US$2.7bn), a 32% premium to the share price pre-offer. The acquisition would see RIO increase its Oyu Tolgoi project ownership to 66% (34% Mongolian Government), simplifying the ownership structure of the asset. RIO shares fell 3.93% to close at $106.75.

Uniti Group (UWL) responded to media takeover speculation yesterday, confirming that they have received a non-binding indicative proposal of $4.50 per share, subject to a number of conditions, from MHRL Morrison & Co (on behalf of its managed funds and clients). These conditions include bidder’s due diligence, Board approval, entry into a takeover scheme implementation agreement and regulatory approval. Morrison & Co and UWL have entered into exclusive discussions, with this set to end by 22 April 2022. UWL shares rose 27.3% to close at $4.01.


Elders Limited (ELD) released a trading update yesterday, expecting to report FY22 underlying EBIT in the range of 20-30% above FY21 underlying EBIT. ELD noted a very strong start to FY22, with improvement in the Retail and Wholesale segments due to increased sales from favourable seasonal conditions across most parts of Australia. The Agency business also continues to perform strongly as a result of sustained high prices in both sheep and cattle, whilst the Real Estate businesses are also exceeding expectations due to increased turnover and high demand. ELD shares rose 11.0% to close at $13.32.


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