AusNet Services (formerly: SP Ausnet)

[butcher]

Wow, this is dampening considering Singapore Power is widely associated with our incumbents

[tanjm]

Wow, this is dampening considering Singapore Power is widely associated with our incumbents

As usual, someone wants to turn a non-political topic to a political one.

Back to the article. I find it full of innuendo and semi-clever use of words to suggest something nefarious is going on. The authors of the article appear deliberately to be trying to sensationalize while carefully skirting libel laws. If there is something there, the system will determine it.

If you are a shareholder of AUSNET, you are most likely holding it for a stable income, not growth at any price. Not all M&A are good things to have.

[greengiraffe]

AusNet’s ousted director Tony Iannello: voting by Asian investors foul
THE AUSTRALIAN JULY 30, 2015 12:00AM

Christine Lacy

Margin Call columnist
Melbourne

AusNet’s bid for TransGrid has been stymied by the company vote. Picture: Renee Nowytarger Source: News Corp Australia

Ousted AusNet independent director Tony Iannello has called on the corporate regulator to investigate what he describes as the “highly unusual” voting pattern at the energy company’s annual meeting in Melbourne last week.

Major AusNet shareholders Singapore Power and China’s State Grid Corporation voted against Mr Iannello’s re-election to the board to end his 10-year tenure as a director of the company.

They also stymied a resolution to allow AusNet to issue fresh ­equity, which was required to help fund the company’s role in any $8 billion-plus bid for NSW Premier Mike Baird’s privatisation of the state-owned transmission network, TransGrid.

Mr Iannello had led an independent board acquisition committee, which was charged with overseeing a likely bid for NSW’s power distribution company expected to be privatised.

“I have been privy to confidential information, but if the regulator was to approach me I would certainly help them and provide information to the extent that I could,” Mr Iannello told The Australian yesterday.

“This is a very unusual voting pattern and the regulator should take some interest.

“It is very unusual for you to see an action by two major shareholders to cast the same vote, in such a controversial way.”

But there has been no contact from the regulator as yet on the vote. “I am waiting,” Mr Iannello said.

More than 60.5 per cent of votes cast were against the re-election of Mr Iannello. The same proportion of votes were cast against the issue of new shares.

State Grid owns 19.9 per cent of AusNet, while Singapore Power has 31.1 per cent. Singapore Power has denied it colluded with State Grid to derail the AusNet bid for TransGrid.

Mr Iannello, formerly the managing director of Western Power, also warned Mr Baird to be vigilant on governance around bids for TransGrid. State Grid is bidding as part of another consortium that also includes investment bank Macquarie Group.

“I would be very keen for Mike Baird with the Foreign Investment Review Board to review the governance structures to make sure they are appropriate and enduring,” Mr Iannello said.

He said failure of the resolution allowing the issue of capital would affect AusNet’s role in the multi-billion-dollar privatisation. Analysts have said AusNet would require an equity raising of $3.3bn to help fund any bid.

“Voting down the capital raising does affect … and hamper AusNet’s ability to bid,” he said.

Mr Iannello said the acquisition sub-committee of the board had been established to ensure that independence and confidentiality was maintained in any bids for assets by AusNet outside of any decisions or moves by its major shareholders.

He said the very real possibility of competing bids between AusNet and its shareholders for assets including TransGrid was a prime driver of the decision.

“It was to maintain appropriate governance,” he said.

He believes it was unlikely that the Baird government would ­accept a bid for TransGrid from AusNet that was conditional on shareholder approval for funding due to probity issues.

Mr Iannello also criticised the governance guidelines around board composition, including those around the independence of a company chair. The guidelines, he said, lacked rigour and should be mandatory.

AusNet’s chair is a Singapore Power representative.

“The ASX has corporate governance guidelines, AusNet is a top 100 company and it doesn’t comply with four of the guidelines,” Mr Iannello said. “That is a deficiency in the regulatory regime and if they (the regulators) do contact me I will make that clear.”

[greengiraffe]

Tax benefits help AusNet post $374.5m half-year net profit

• JOHN CONROY
  
• BUSINESS SPECTATOR
  
• NOVEMBER 17, 2015 9:04AM
  

[b]AusNet Services has swung to profit in the first-half as the electricity network operator reaffirmed its forecast for an increased full-year 2016 dividend.[/b]
In the six months to September 30, AusNet (AST) posted a net profit of $374.5 million against a $4.9m loss for the prior corresponding period.
The result included two one-off tax benefits — arising from a legal entity restructure and an intellectual property dispute settlement — totalling $159m.
The group’s adjusted earnings before interest, tax, depreciation and amortisation lifted 14.7 per cent to $650.4m “principally due to higher volumes and tariffs on both electricity and gas distribution networks.”
The company reported a 10 per cent increase in revenue to $1.069 billion.
The company announced an interim dividend of 4.265c, fully franked, and said it was on track to deliver a 2 per cent lift in its total dividend to 8.53c, fully franked.
The interim dividend will be paid on December 24 to shareholders on the register at November 24.
Electricity distribution revenue growth was driven by a combination of regulated price increases for both power distribution and metering and a cooler six-month period to 30 September 2015 compared to the previous period.
A 5.4 per cent increase in volumes was also driven by customer connections.

[starcraft_76]

AusNet Services hitting historical high again.

The last time it hit such a high price is 2 years ago.

Guess it might be a good time to rotate the fund to other counter?