The past week was very eventful for ASX shares with news of surprise takeovers of AMP Limited (ASX: AMP) and Coca-Cola Amatil Ltd (ASX: CCL). Moreover, annual general meeting (AGM) season continued with meetings for heavyweights like Carsales.Com Ltd (ASX: CAR) and JB Hi-Fi Limited (ASX: JBH).
This week, the theme of takeovers is likely to continue. In addition, there will be a series of AGMs, some of which may prove contentious. All times mentioned are eastern standard time.
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Major events planned for ASX shares
Monday
New listing:
Monday will see Dusk Group Limited (ASX: DSK) list for the first time. This company is the candle retailer you may have run into in the local malls. An omni-channel consumer discretionary company, it has reportedly completed a $70 million deal at $2 a share. The IPO will value Dusk at 10.1 times earnings for the year to 30 September. This is the equivalent of $124.5 million in terms of market capitalisation.
This comes on the heels of Adore Beauty Group Ltd (ASX: ABY) and, more successfully, Zebit Inc CDI (ASX: ZBT)'s recent listings.
Westpac annual report:
This morning, Westpac Banking Corp (ASX: WBC) released its annual report, posting a 66% decline in statutory net profit to $2,290 million, which was largely in line with expectations. Analysts at Goldman Sachs, for example, were expecting Westpac to deliver a 63% decline in cash earnings. The bank also included additional charges for AUSTRAC matters. Additionally, a write down associated with Westpac Life Insurance Services Ltd, and an increase in provisions for refunds and litigation.
The Westpac share price slid by 4.9% across last week's trading, but is up by 0.34% so far this morning as the market digests the results.
Reports on the economy:
At 11.30 am the Australian Bureau of Statistics (ABS) will release the building approvals and the housing finance reports. At the same time Australia and New Zealand Banking GrpLtd (ASX: ANZ) will release the ANZ job ads report. These three reports will provide investors with a view into the domestic economy. In particular, there has been a lot of interest in the housing market since the lockdowns started. This is likely to impact ASX shares.
Wednesday
At 9 am, small cap ASX share, Evans Dixon Ltd (ASX: ED1) will hold its AGM. While only a small company, it is likely to be a contentious event. Evans Dixon is currently being targeted for takeover by 360 Capital Group Ltd (ASX: TGP). 360 Capital managing director Tony Pitt recently manoeuvred the company to purchase 19.9% of Evans Dixon from company co-founder Alan Dixon.
Tony was then elected with unanimous support to the board of Evans Dixon, subsequently dropping an unsolicited takeover bid into their laps on 22 October. As of last Friday, the board had withdrawn support for him. In addition, it has recommended shareholders do not support his election to the board, declaring in a statement: "The directors believe that his appointment would put him in a position of conflict between his obligations to 360 Capital Group and his obligations as a director to the company."
Thursday
At 9 am Ansell Limited (ASX: ANN) will hold its AGM, with detail behind Q1 performance and FY21 guidance. Last Friday, the personal protective equipment company company upgraded its FY21 guidance for earnings per share from $1.26–$1.38 to $1.35–$1.45. This is due largely to better than expected sales across all of its 5 strategic business units. The healthcare ASX share will also provide further detail on the progress of expansion capex spending, which it believes is proceeding to plan.
Friday
Macquarie Group Ltd (ASX: MQG) will present an interim result on Friday. In a recent presentation, Macquarie included its Q1 results, which showed that the profit contribution from the company's annuity-style businesses was slightly up versus the prior corresponding period (pcp). Its market-facing businesses were slightly down versus pcp.
The rise in from the annuities businesses was largely due to the sale of the company's rail operating lease business. In the market-facing businesses, Macquarie Capital saw investment-related income reduce significantly.
Macquarie Group has also been making headlines due to its stake in Barrenjoey investment bank. The interim update may also include further information on this issue.
