Bendigo and Adelaide Bank Ltd (ASX: BEN) today announced its intentions to take a 10% stake in Cuscal, a leading payments provider in Australia.
Cuscal is taking over Strategic Payment Services (SPS), a major independent EFTPOS and payments provider that was launched as a joint venture between Mastercard (52.5%) and Bendigo Bank (47.5%) back in 2006.
Bendigo’s renewed investment reflects a vote of faith in the continued prospects of the payment-provider venture, one of Australia’s (and the world’s) most exciting and innovative industries.
While contingent on Cuscal shareholder approval at their AGM in November, the investment is good news for both Bendigo Bank and its shareholders, putting it one step closer to its goal of being ‘Australia’s most customer-connected bank’.
Following a similar strategy of identifying high-yield opportunities, Stockland Corporation Ltd (ASX: SGP) recently purchased a 50% interest in Sugarland Shoppingtown Bundaberg from an AMP Limited (ASX: AMP) managed fund.
Stockland’s latest acquisition generates $9,566 per square metre in sales, which is well above a comparative benchmark of $7,929 p/sqm.
It certainly looks to be a lucrative investment for Stockland, which also has a binding put/call option arrangement with AMP to acquire the remaining 50% at ‘materially similar’ terms any time between 6 and 24 months after the initial acquisition, which finalised on 10 October.
Making the right investment in regional areas can lead to significant outperformance when lower initial investment and faster growth are factored in, and the Bundaberg complex looks to be an excellent addition to Stockland’s national portfolio.
Finally Dyesol Ltd. (ASX: DYE) continues to inch ever closer to its plan to market its dye solar cell technology to the global marketplace after inking an agreement with Tata Steel UK on Friday.
The agreement gives Dyesol the right of first refusal to distribute its steel-substrate photovoltaic technologies through Tata’s extensive product distribution channel.
Assuming dye solar cell tech lives up to the greater efficiency and lower cost information released to the market, distribution agreements like this one will underpin the company’s eventual earnings capacity and it is pleasing to see Dyesol continue to develop its global partnerships.
Although Dyesol is not expected to begin full-scale manufacturing until 2018, the lead-up to production will be vital and key agreements such as this one will be vital to the company’s success.
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Motley Fool contributor Sean O'Neill owns shares in Dyesol Ltd.
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