Merger of TABCORP and Tatts Group. 

Posted on | by Leon Hinde | Leave a Comment on Merger of TABCORP and Tatts Group. 

After a year of negotiations and due diligence, the Australian Competition Tribunal (ACT) has approved the $11 billion merger of TABCORP and Tatts Group. 

Despite an objection by the ACCC, the ACT granted the merger and will announce the full details of their decision on November 22nd. 

Tatts Group shareholders will vote on the merger on November 30th, which is expected to just be a formality.

 Both shares have been placed in a trading halt this morning. 

After trading as low as $3.90 on August 14th, shares of TAH have been moving steadily higher as the prospects of the merger approval have increased. The synergies of the merger could see TAH shares rally into the $5.60 area.

 

 

 

 

 

 

Ramsay Rallies After AGM Statement

Posted on | by Todd | Leave a Comment on Ramsay Rallies After AGM Statement

Shares of Ramsay Health Care have jumped over 3.5% to $67.25 in early trade after the release of its AGM statement.

According to the release, management reaffirmed that it expects its core earnings per share to grow between 8% and 10% for FY 2018.

Based on the market reaction, investors may have been expecting the company to downgrade its guidance considering that private hospital cover has dropped to it lowest level in five years.

For a high capitalization stock, RHC trades on high volatility and wide trading ranges.

The “lower high” pattern is still in place with key resistance in the $68.30 area and support near the September lows of $61.20.

 

Concensus EPS for FY18 $2.84 v $2.35 for FY17