AU Morning Wrap: Elders Sinks 7.2%; Newcrest Rises on Newmont Deal

The S&P and Dow fell Friday and posted a second straight weekly loss as regional bank concerns lingered and survey data showed rising consumer inflation expectations.

Stocks opened little changed but losses accelerated after the release of the University of Michigan's consumer sentiment gauge, which showed consumer sentiment dropping to a six-month low and stubbornly high inflation expectations.

Elders dropped 6.5 per cent to $7.76 after reporting a fall in its half-year profit and cutting its dividend. Pact Group fell 3.7 per cent to 92.5¢ as it downgraded its earnings guidance.

Newcrest added 1.6 per cent to $28.70 after accepting Newmont's takeover offer.

ANZ fell 3.9 per cent to $23.54 as it trades ex-dividend today.

Tyro Payments jumped 1.9 per cent to $1.57 after upgrading its FY23 gross profit and EBITDA guidance.

Under the terms of the transaction, Newcrest shareholders will receive 0.40 Newmont shares for each Newcrest share held. In addition, Newcrest will be permitted to pay a franked special dividend of up to $US1.10 per share on or around the implementation of the scheme of arrangement.

Underlying EBIT of $82.8 million was down 37.7 per cent.

The company declared a 30 per cent franked dividend of 23¢ a share, down 18 per cent on the 28¢ a share dividend declared for the same period last year.

Elders said it now expects FY23 underlying EBIT to be between $180 million and $200 million, the midpoint of which is 18.1 per cent lower than FY22.

The same assets are the subject of a separate offer from Genesis Minerals, with the two companies agreeing to a deal in April – one which will allow St Barbara to focus on its struggling overseas mining interests.

St Barbara was cold on Silver Lake's initial approach – earlier this month – for several reasons.

Gross profit guidance was lifted to $192 million to $194 million, from $187 million to $191 million previously. EBITDA was upgraded to $41 million to $43 million, from $37 million to $41 million previously.

The company's transaction value was revised to $42.25 billion to $42.75 billion, from $42.5 billion to $43.5 billion.

The transaction values NeoGames' fully diluted equity at $US1 billion ($1.5 billion), representing a premium of 104 per cent to NeoGames' three-month volume weighted average price for the period ended May 12.

Train 2 production restarted on May 11, following a planned gradual ramp-up of Train 1 and the completion of Train 2 maintenance works.

The revised proposal follows a period of engagement with TPG after TPG's unsolicited, conditional, non-binding and indicative proposal received on March 7 of $12.65 per InvoCare share, and following the announced withdrawal of that initial proposal on April 24.

The revised offer equates to an equity value of $1.9 billion and an enterprise value of $2.2 billion.

Listing: None