Stocks to watch: AIR, CHA, PGC, SKC, TEL, TWR

Stocks to watch: AIR, CHA, PGC, SKC, TEL, TWR

July 4 (BusinessDesk) – The following stocks may be active on the New Zealand exchange after developments since the close of trading. All prices are in New Zealand dollars unless specified.

Themes of the day:

Juice-maker Charlie’s Group has received a takeover bid from Japan’s Asahi group at a 57% premium to its current share price, valuing the company at $129.3 million.

The government is set to release its three-year plan for national infrastructure in parliament today, a list of priorities and a stock-take of the spending to come in the next three to four years.

Better-than-expected U.S. manufacturing data saw global equities rally last week, with the ISM Manufacturing Index for June coming in at 55.3 versus a market forecast of 52. On Wall Street, the Standard and Poor's 500 Index closing 1.4% higher at 1339.65 on Friday in New York, while Europe's Stoxx 600 rose 0.8% to 274.92

Air New Zealand Ltd. (AIR): The Employers & Manufacturers Association says it's looking to talk the national carrier out of leaving the organisation over controversial comments made about women in the workplace by chief executive Alasdair Thompson. The airline's shares were unchanged on Friday at $1.12.

Charlie's Group (CHA): The local unit of Japanese brewer and beverage company Asahi has launched a bid to acquire 100% of the soft drink and juice maker at 44 cents a share, valuing the company at $129.3 million. The company's majority shareholders, who control 52% of the company's stock, have accepted the offer and Charlie's board has recommended remaining shareholders also accept. Charlie's shares were unchanged on Friday at 28 cents.

Pyne Gould Corp. (PGC): The financial services company's shares fell 2.5% on Friday to 39 cents after it said it will put up $14 million to refinance a related fund as it winds itself down. The company said the move was to ensure Equity Partners Infrastructure Company No.1 Ltd. has an orderly sell down of assets, and buying a stake in the National Australia Bank’s loan facility gave it better control to do that.

SkyCity Entertainment Group (SKC): Christchurch Casino says it was fully insured for interruptions to equity earnings caused by the Christchurch earthquakes, but is still negotiating with insurers over claims for earthquake-related damages, with six separate claims currently lodged. Shares in SkyCity, which owns 50% of the South Island gaming facility, were unchanged on Friday at $3.62.

Telecom Corp. (TEL): New Zealand biggest phone company and government negotiating entity Crown Fibre Holdings have missed a deadline to agree where and when Telecom's network arm Chorus will lay fibre under the ultrafast broadband project, according to a Fairfax Media report. The plan was scheduled to be completed within 30 days of Telecom securing its $929 million contract on May 24. Telecom shares rose 2.4% on Friday to $2.51.

Tower Ltd. (TWR): The general insurer says its new computer system, InsuranceFaces, will not be ready before February and is likely to cost $10 million more than budgeted due coding problems. The company was set to debut the platform within its Fintel business on Aug. 1. Fintel constitutes a tenth of Tower's business. Tower shares fell 1.3% on Friday to $1.50.

(BusinessDesk)

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