Total Face re-stocks warchest for acquisitions

Recently-listed botox and skin care company Total Face Group is back in front of potential investors, seeking to raise $10 million for three acquisitions. 

Recently-listed botox and skin care company Total Face Group is back in front of potential investors, seeking to raise $10 million for three acquisitions. 

It's understood Total Face is seeking the equity injection to buy three established businesses for $6.4 million and the issue of 4.9 million shares. 

The three businesses have five locations across Queensland, Canberra and Melbourne, and the deals value each of them at 4.5-times proforma earnings before interest, tax, depreciation and amortisation. 

Total Face is expected to confirm the acquisitions and raising before the end of the week. Bell Potter Securities has been lining up investors for the raising. 

The company's shares went into a trading halt on Tuesday. 

Total Face listed at 40¢ a share in January. 

The stock last closed at 30¢. 

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Vodafone the 'most logical' partner for Sky Network Television

Dual-listed Sky Network Television has confirmed it is in merger talks with Vodafone New Zealand.

Dual-listed Sky Network Television has confirmed it is in merger talks with Vodafone New Zealand, as it considers all sorts of corporate activity and capital management options. 

The $1.6 billion New Zealand free to air and pay-TV company told investors on Wednesday morning that it was in talks regarding combining its assets with Vodafone's New Zealand business. 

It comes as investors and analysts have been running the ruler over Sky Network's options. 

Macquarie analysts said only last week that Sky Network's best bet on the M&A front would be a deal with Vodafone NZ. 

"The most logical corporate tie-up would see the Vodafone NZ business and SKT coming together, effectively fully leveraging and crystallising the wholesale revenue and cost synergy benefits achieved via the current wholesale relationship," the analysts told clients on June 1. 

"Whether Vodafone has the long-term commitment to the NZ market, and the support of its parent, to undertake such a move is unclear." 

Sky Network provides multi-channel, pay television and free-to-air television services in New Zealand, distributing content to a subscriber base.

Analysts have called on Sky Network to increase its investment in technology, or return capital to shareholders. 

Macquarie analysts said Sky Network was unlikely to buy a pure play media company, but a tie-up with a telecommunications company could be transformational. 

The company's ASX-listed shares last closed at $4.15, which was down 21.8 per cent over the past year. Its biggest shareholders include Lazard Asset Management and Perpetual. 

Sky Network shares are in a trading halt until Friday as it seeks to progress discussions with Vodafone. 

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Investors watch out for $80m Eclipx trade

Fund managers are keeping an eye on leasing company Eclipx Group with Ironbridge Funds' $80 million stake set to be released from escrow after market on Wednesday.

Fund managers are keeping an eye on leasing company Eclipx Group with Ironbridge Funds' $80 million stake set to be released from escrow after market on Wednesday. 

Ironbridge owns 21.6 million Eclipx share, representing 9 per cent of the company's equity on issue. 

Ironbridge, a private equity firm based in Sydney, retained a 40 per cent stake in Eclipx at the company's initial public offering in April last year.

It has since sold shares at $3.20 and $3.16 in block trades through UBS. 

Ironbridge's most recent selldown was on May 12 when it offloaded 38 million shares at $3.20 each.

The private equity firm's remaining 9 per cent stake was placed in escrow for 30-days. 

The escrow expiry comes as Eclipx trades at a record high on Wednesday, following a well received investor day earlier in the week. 

Equities desks were also keeping their clients on top of the situation on Wednesday. 

Eclipx's largest shareholders include Bennelong Funds Management, AMP and BT Investment Management. 

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Midday Thursday deadline for Range International IPO

Morgans is seeking bids for Range International's $50 million initial public offering by midday on Thursday.

Morgans is seeking bids for Range International's $50 million initial public offering by midday on Thursday. 

Range International is seeking to raise $50 million at $1 a share, which would put a $150 million market capitalisation on the plastic pallets company. 

If successful, it would list with $58 million in cash and an ability to fund its aggressive expansion plans. 

Range International expects $2.9 million revenue in the 2016 financial year, increasing to $17.8 million in 2017 and $44.4 million the year after. 

The company has told investors it expects to go from a $1.8 million loss to a $10.8 million profit over the same timeframe. 

Range International produces mixed waste plastic pallets at a similar price to wood pallets. The company is seeking to increase pallet production quickly following the IPO. 

Morgans is expected to underwrite the IPO later this week, provided it gets a positive response from potential investors at the bookbuild. 

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Macquarie initiates on Reliance Worldwide with 'outperform' rating

Analysts at Macquarie have initiated coverage on Reliance Worldwide Corp with an 'outperform' rating less than two months after the company's ASX debut.

Analysts at Macquarie have initiated coverage on Reliance Worldwide Corp with an 'outperform' rating, less than two months after the company's strong ASX debut.

While JPMorgan was the global co-ordinator on the float Macquarie joined the bank as a joint lead manager. 

Macquarie analysts set a target price of $3.25 per share, highlighting Reliance's "growth potential" and strong market position in the design, manufacture and supply of water flow and control products and solutions for use in the "behind the wall" plumbing industry. 

"We anchor the valuation around that of James Hardie, assessing Reliance's growth potential as comparatively good," they said.

"We believe Reliance shares similar attractive growth prospects and expect it to re-rate to command a similar premium as it builds its track record as a listed entity."

The company began life on the ASX in April and as at Monday's close of $3.06 remained well above its debut price of $2.50. 

Macquarie analysts noted, however, that key risks to Reliance included customer concentration with 35 per cent of FY15 sales generated by its largest customer, a prolonged downturn in repair and renovation and new construction end markets and a stronger Australian dollar.

About 75 per cent of Reliance's sales are generated outside Australia, Most of its sales are in the United States and comprise premium-branded products primarily for the repair and re-model market. 

Street Talk revealed Reliance's listing plans on November 24.



 

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