ASX 200 rises, Woolworths acquisition approved, Austal in rough waters

It was another day of growth for the ASX 200.

bull market encapsulated by bull running up a rising stock market price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) rose 0.4% today to 7,303 points.

Here are some of the highlights from the ASX:

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price rose more than 0.5% today after it was approved for its acquisition.

Woolworths acknowledged the decision by the Australian Competition and Consumer Commission (ACCC) that it will not oppose its strategic investment in PFD Food Services, which is described as one of Australia's leading food service suppliers.

The ASX 200 share can now acquire a 65% equity interest in PFD Food Services, with completion expected by the end of June.

Brad Banducci, CEO of Woolworths, said:

We're pleased to have approval to invest alongside the Smith family in PFD Food Services. They are a great Australian success story and a well respected business with both suppliers and customers in the food service industry.

This investment is a logical adjacency for Woolworths Group and further supports the evolution of the group into a food and everyday needs ecosystem.

PFD will continue to operate independently under CEO Kerry Smith. A separate board and governance structure will now be implemented.

Austal Limited (ASX: ASB)

This morning the shipbuilding company advised that civil penalty proceedings have been commenced by the Australian Securities and Investments Commission (ASIC) against the business and its former CEO Mr David Singleton.

The proceedings allege that Austal was aware as early as 4 June 2016 of the need to make a material write back of work in progress attributable to the Littoral Combat Ship (LCS) program.

Austal disclosed that ASIC is seeking civil declarations that Austal contravened its continuous obligations as well as the relevant misleading and deceptive conduct provisions of the law.

The proceedings against the former CEO allege he was involved in the company's contravention of its continuous disclosure obligations and failed to discharge his duty to exercise due care and diligence in relation to matters concerning the disclosure of the earnings write back.

Austal said it will consider the documentation provided by ASIC before deciding its next steps. The Austal share price fell over 2% in response. 

Boral Limited (ASX: BLD)

Boral released its target statement in response to the off-market takeover offer made by Seven Group Holdings Ltd (ASX: SVW) of $6.50 per share.

The Boral independent board committee appointed Grant Samuel & Associates Pty Limited as the independent expert to give an independent opinion about whether the offer was fair and reasonable for Boral shareholders not associated with Seven.

That independent expert concluded that the offer was neither fair nor reasonable for the ASX 200 share and is below the independent expert's estimated fair market value of $8.25 to $9.13 per share. The independent board committee unanimously recommended that shareholders reject the offer.

Kathryn Fagg, the Chair of Boral, said:

The Boral independent board committee has carefully considered the SGH offer to assess whether it is in the best interests of Boral shareholders and believes that the SGH offer materially undervalues your Boral shares.

Ms Fagg went on to say that the board believes that any proposal to acquire control of Boral should be at a fair value.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Austal Limited. The Motley Fool Australia owns shares of and has recommended Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »

Father in the ocean with his daughters, symbolising passive income.
Dividend Investing

I'd spend $8k on these ASX 200 shares today to target a $6,102 annual passive income

I believe these ASX 200 shares will continue rewarding passive income investors for years to come.

Read more »

Three businesspeople leap high with the CBD in the background.
Share Market News

Boom! ASX 200 blasts to new record highs

ASX 200 investors just sent the benchmark index into uncharted territory.

Read more »