Quickflix seeks to raise $6 million as it takes aim at Netflix; Wesfarmers cleared to buy Pacific Brands’ Workwear Group: Midday roundup

Quickflix has moved quickly to secure its Australian dominance after Netflix confirmed it Australian launch yesterday, announcing it will seek to raise almost $6 million to secure new TV and movie content.

The Australian-based streaming service announced to shareholders it will undertake a renounceable entitlement issue of five new fully-priced ordinary shares for every four held by eligible shareholders. The shares will be 0.3 of a cent each and will raise around $5.7 million for the company.

The company will also give shareholders the option to participate in an additional capital raising through an Offer Information Statement, which is intended to raise up to a further $1 million.

Quickflix is currently the market leader in the Aussie streaming market.

Founder and chief executive Stephen Langsford previously told SmartCompany Quickflix was in the box seat to lead the movie streaming pack in Australia and was not concerned about competition with its US rival.

“We have HBO and Netflix doesn’t,” Langsford said. “We also offer the latest movies on a transactional basis. We see huge growth ahead for Quickflix as we continue to focus on delivering more great content over the diverse platforms we’re already on.”

Wesfarmers cleared to buy Pacific Brands’ Workwear Group

The competition watchdog has cleared Wesfarmers’ proposed acquisition of Pacific Brands’ industrial and corporate workwear brand, the Workwear Group.

The Australian Competition and Consumer Commission announced it will not oppose the takeover announced in August, after it investigated whether Wesfarmers would have the incentive to limit rivals’ access to brands such as King Gee and Hard Yakka as a result of the proposed acquisition.

“Wesfarmers will continue to be constrained by a number of existing suppliers and by actual and potential imports from Asia. In retail markets, Wesfarmers will face competition from other retail chains and local outlets for the supply of workwear,” ACCC Chairman Rod Sims said.

“New wholesalers and resellers have entered the market in recent years and the ACCC expects that this trend will continue.”

The ACCC also considered a decrease in customer brand loyalty would stop Wesframers from having an incentive to limit access by resellers and retailers to the Workwear Group brands.

Shares down on open

Aussie shares have traded lower again this morning, with the ongoing slump in iron ore prices continuing to plague the resource sector.

Tristan K’Nell, head of trading at Quay Equities, said flatness in the banking and retail sectors also contributed to this morning’s results, while data from China and Japan will likely determine the market’s afternoon session.

“Despite the strong export figures the market is more interested in the HSBC China Manufacturing data due at 12.45pm and also the Japan Markit Manufacturing PMI data due a little earlier at 12.35pm,” said K’Nell.

The S&P/ASX200 benchmark was down 22.4 points to 5346.4 points at 12.08pm AEDT. On Wednesday the Dow Jones closed 25.7 points lower, down 0.48% to 5326.8 points.