Media intelligence and content marketer iSentia has been approached by a would-be suitor, sources told Street Talk on Monday. 

Street Tak understands the approach was made in recent weeks, as iSentia's shares languish at close to record lows. 

"We are not in talks with another party and we have no plans to release a statement to the Australian Securities Exchange," a spokesman for iSentia told Street Talk.

When asked if iSentia had received an approach, the spokesman declined to comment.

A company does not have to disclose indicative and conditional bids while they remain confidential. 

iSentia shares have lost a third of their value this year to close on Monday at $1.89. 

As Street Talk revealed, iSentia has Credit Suisse and Macquarie Capital bankers in its corner, ready to help however possible. 

Macquarie oversaw iSentia's ASX listing in 2014 alongside UBS. UBS's lead banker on that deal, Michael Stock, now runs investment banking at Credit Suisse. 

As this column also first reported, at least two market research firms have been contacting iSentia clients and other industry participants to garner information on the company's target markets.

Sources said one of those research firms was London-headquartered Third Bridge, which provides private equity firms, hedge funds and consultants with information to understand the value of investment opportunities.

The interest in iSentia comes as cashed up private equity and strategic buyers get serious about taking ASX-listed companies private. Already this year, private equity bids have been submitted for Fairfax Media, publisher of The Australian Financial Review, and Vocus Group, while others to attract attention include Pepper Group. 

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Former chief executives David Thodey, Richard Goyder and Paul Bassat have turned their hands to picking stocks and are seeking to raise up to $150 million for a new listed fund. 

As first reported by Street Talk on Monday, Thodey, Goyder and Bassat are named as investment committee members for ASX-hopeful Evans & Partners Global Disruption Fund, which is in the market with a $50 million to $150 million equity raising. 

The trio would join Evans & Partners founder (and now Evans Dixon chairman) David Evans on the investment committee, along with Suncorp Group director Sally Herman and "digital guru" Jeffrey Cole.

The investment committee would pick stocks alongside Raymond Tong, who is the fund's portfolio consultant and former lead Australian telco equities analyst at Goldman Sachs. 

The pitch is about investing in listed companies that have an ability to disrupt existing markets or the ability to use technology to disrupt existing industries. 

The fund is targeting a 30 per cent to 98 per cent allocation to listed international equities, according to an offer document sent to Evans & Partners clients, up to 20 per cent in Australian shares and 2 per cent to 50 per cent held in cash. 

If successful the new fund would begin trading on the ASX on July 31. Units were being offered at $1.60 each, which would see them list with $1.55 net asset value backing. 

The fund is overseen by responsible entity Walsh & Co - which is part of the recently formed Evans Dixon Group - and managed by Evans and Partners Investment Management. 

But it is clear from the offer document that the investment decisions lie with the investment committee and Tong. 

It'll be interesting to see how the raising goes, and even more interesting to see how the big name backers go picking stocks. No doubt they have had plenty of conversations with fund managers over the years and will relish the opportunity. 

And with the fund to be listed on the ASX, their performance will be available for all to see.  

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There is nothing like a 47.4 per cent jump on big volume to prompt an ASX speeding ticket.

And so it was for Adairs late on Friday, which told the exchange operator it had no real explanation for its one day jump from 57¢ a share to 84¢. 

Fund managers, though, reckon there was a reason for the spike. 

It is understood two long-time institutional sellers got out of the stock in early trade, taking a handbrake off the stock and seeing it bounce back off its record low. 

The sellers - who were both said to be backed by AustralianSuper - were responsible for lines of 1.4 million, 1.5 million and 2.5 million shares that changed hands in early Friday trade for 57.5¢, 57.5¢ and 59¢ a share respectively. 

Macquarie's equities desk did the trading, according to Bloomberg broker share data. 

From there, the stock slowly rose all day to finish at 84¢. 

It's still well down on where the stock was three months ago ($1.14 a share) and below its $2.40 a share listing price two years ago. 

The trading also came as UBS analysts upgraded the stock to "buy" from "neutral" on valuation grounds. 

"It is difficult to have a high degree of confidence in the sales and margin profile for ADH given the current headwinds in the business," UBS analysts told clients.

"That said, the company is trading on just 8.3x FY18E EPS and remains a vertically-integrated retailer with best-in-class supply chain and operates in a fragmented industry.

"Our long-term margin forecast is now 9.1% but if the business can continue to expand into higher margin fashion adjacencies over time and stabilise LFL sales growth, then there could be material upside to this forecast (FY16 EBIT margins were 15.9%)."

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Cromwell Property Group is gearing up plans for its $1.8 billion Singapore-listed real estate investment trust, adding to the deals the firm is juggling.

Street Talk understands Cromwell's advisers on the REIT, UBS and Goldman Sachs, have completed a non-deal roadshow in recent weeks. 

The tour spanned investors in Asia and Europe and a listing for the portfolio of European industrial and office assets is being targeted within three months. 

Given the entity's complex structure, sources said the focus was now on preparing detailed offer documents. 

Paul Weightman-led Cromwell has had this REIT in the works for some time, so investors will be pleased to know it's not pens down. REITs, are however, highly leveraged to movements in bond markets.  

UBS and Goldman's equity capital markets bankers are said to be largely running the deal out of Asia. 

In its most recent presentation to investors, Cromwell noted that while European transaction volumes were softer in 2016, down from a peak in the previous year, they were "still above" long-term averages. 

In 2015, Cromwell bolstered its international presence by acquiring Valad Europe, an investment platform which at the time managed a $7.6 billion property portfolio.

Last year, Cromwell separately established a new €2 billion European property fund with support from the largest privately-owned life insurance company in Denmark, PFA Pension.

But on another live Cromwell transaction the company remains eerily quiet.

There has been no word on Cromwell's $3 billion bid for Investa Office Fund, since the acrimonious tussle led to the suitor being booted out of an online dataroom. 

Elsewhere in the sector, it's nearing crunch time in the auction of Blackstone's Australian retail platform of 10 shopping centre assets.

The transaction is slated to be worth $3.5 billion to $4 billion. Sources told this column Blackstone was targeting a decision on the sale in mid-July. 

A handful of parties are in due diligence on the assets and are also undertaking ongoing inspections. 

This column flagged Blackstone had mandated UBS, JPMorgan and JLL to oversee the sale.

Blackstone's portfolio in Australia and New Zealand includes centres acquired [alongside Mirvac] last year from Vicinity Centres, Top Ryde City in Sydney and Melbourne's Greensborough Plaza.
 

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First-round bidders for ANZ Banking Group's wealth business can expect information on the next stage of the auction late this week, at the earliest.  

Sources told Street Talk ANZ was being coy on the structure and timetable for the next round of offers.

The bank and adviser Goldman Sachs wanted to get a good handle on the complexity of offers that came in on June 9 before deciding how to proceed. 

This column understands that bidding parties were advised that offers - for the preferred structure which is the division in its entirety - should be pitched between $4 billion to $5 billion.

The vendor is, of course, looking for a number at the top end of that range. 

ANZ will, however, have a few tough decisions to make.

The bank will need to decide how to respond to several parties lobbing non-conforming bids while some made multiple offers to appease ANZ on its preferred structure.

The up for sale division includes ANZ's life insurance operations and funds management arm. Within the division are a number of dealer groups such as millennium3 and a planning joint venture with ASX-listed Elders. 

Suitors for the business include AIA Group, Zurich, Metlife, and Dai-Ichi Life-owned TAL. 


 

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