ANZ buys out ING Australia, ConnectEast shares placed in trading halt: Economy Roundup

ANZ Banking Group has announced it will buy out its joint venture partner ING Australia in a deal worth $1.8 billion.

The bank, which has been placed in a trading halt, will purchase the remaining 51% stake in ING Australia and ING New Zealand for $1.76 billion, with the deal to be funded by internal capital.

ING Australia and ING Holdings will now become subsidiaries of the bank, ending the joint venture between the two companies which began in 2002.

The purchase, which was forecast by chief executive Mike Smith two years ago as a “must” purchase, is still subject to regulatory approval.

Meanwhile, Ten Network Holdings has said major shareholder Canwest MediaWorks Ireland Holdings has completed the sell-down of its 50.1% share in the company at $1.30 per share.

The sale, which was conducted by Macquarie Capital Advisers, is expected to be settled on 1 October.

ASIC investigates Kleenmaid, shares down

Elsewhere, the Australian Securities and Investments Commission has approved funds for an investigation into the collapse of white goods franchise Kleenmaid.

Deloitte liquidator Richard Hughes said the investigation will place its main focus on whether Kleenmaid was trading insolvent, which can fetch a jail term of up to five years and a $220,000 fine.

“We will provide a detailed report to ASIC and then it is their decision whether or not they will bring a criminal case against the directors,” Hughes said in a statement.

“At the same time the liquidators will use the findings of the investigation as the basis for any civil action that we may bring to recoup monies on behalf of creditors.”

The Australian sharemarket has fallen after disappointing results in the US overnight, where both commodities and equities markets drove stocks down.

The benchmark S&P/ASX200 index was down 36.7 points or 0.78% to 4664.5 at 12.00 AEST. The Australian dollar also lost ground, moving back to US86c.

Commonwealth Bank shares have fallen 0.4% to $49.82, while NAB dropped 0.2% to $29.80. Westpac lost 0.7% to $25.39, with Woolworths also losing 0.8% to $28.98.

ConnectEast shares in trading halt, Wall Street shares down

ConnectEast shares have been placed in a trading halt ahead of a bookbuild for shares not taken up under the recent $97 million entitlement offer, according to a company statement to the ASX.

The company said investors only subscribed for 38% of the total shares on offer, with Macquarie Capital Advisors to sell the shares through a bookbuild today. A trading halt is expected until the bookbuild is finished or a statement is made.

Handbags and accessory retailer OrotonGroup has recorded a 16.1% rise in annual net profit, with its shares rising 16.81% to $5.35.

The company said in a statement is also expects growth despite the continuing economic turmoil, with net profit reaching $19.4 million during 2009, up from $16.7 million in the previous year. Revenue grew 10.6% to $135.7 million.

“Despite the challenging economic environment in FY09, OrotonGroup has continued to perform well, reflecting the quality of our brands and the consistent execution of our strategy announced three years ago,” Oroton chief executive Sally Macdonald said in a statement.

“As well as many new stores being opened, FY09 saw the smooth completion of the outsourcing of our logistics services, the upgrading of our IT system and a continuing focus on driving our large and valuable customer database and product development engine across new categories.”

Overseas, Wall Street stocks fell on poor commodities and equities markets, along investors’ fears that government authorities may pull out of stimulating the economy.

At the G20 Summit in Pittsburgh, several world leaders of central backs said they might begin to scale back putting US dollars into their own banking systems. The announcement triggered a fall in the stockmarket, sending the Dow Jones Industrial Average down 41.11 points or 0.42% to 9707.44.