ASX 200 up again on Wednesday

The S&P/ASX 200 Index (ASX:XJO) went up again on Wednesday. Commonwealth Bank of Australia (ASX:CBA) gave some divestment news,

a woman

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) went up 0.6% to 6,729 points today.

Here are some of the highlights from the ASX today:

Commonwealth Bank of Australia (ASX: CBA)

CBA announced an update about its divestments today.

The China Banking and Insurance Regulatory Commission (CBIRC) has granted approval for the divestment of CBA's 37.5% equity interest in BoCommLife to MS&AD Insurance Group Holdings.

The final sales proceeds expected to be received by CBA are $886 million. The divestment of the equity interest in BoCommLife is expected to be completed by 31 December 2020.

CBA also said that it has revised the calculation of non-cash gains and losses on the disposal of previously announced divestments including BoCommLife, CFS, CFSGAM, CommInsure Life and Ausiex. The revisions include the finalisation of accounting adjustments for goodwill, foreign currency translation reverse recycling and updated estimates for transaction and separation costs.

The total increase in unaudited post-tax statutory earnings related to the completion of BoCommLife and other divestments is expected to be approximately $840 million, which will be recognised as a non-cash item in the FY21 first half result.

The capital impact of the divestments is a pro-forma uplift to the common equity tier 1 (CET1) ratio of 29 basis points.

Infratil Ltd (ASX: IFT)

The New Zealand infrastructure business announced today that it had knocked back the latest takeover offer from AustralianSuper to buy the whole Infratil business.

Infratil said that the latest offer implied a total value offer of NZ$7.43 per Infratil share, which represented a 22.2% premium to the 8 December 2020 closing share price for Infratil.

The company said that its board reviewed the valuation and the proposed structure and unanimously rejected AustralianSuper's offer because it materially undervalued Infratil's high quality and unique portfolio of assets on a control basis.

The Infratil board said it would consider any proposal to maximise shareholder value, but given the significant deficiencies in the proposal, no further engagement is planned right now.

Infratil's Chair Mark Tume said: "The board regularly assesses portfolio construction and return expectations. We have had a long and successful track record as active managers of the Infratil platform, and recent examples include the ongoing success of CDC Data Centres, the proposed acquisition of Qscan and the strategic review of Tilt Renewables. As at 8 December 2020, Infratil had delivered total shareholder returns of 18% per annum since listing in 1994 and has a stated annual targeted for our shareholders of 11% to 15% over the long term."

The Infratil share price went up 1.5%. 

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) AGM

Soul Patts held its annual general meeting (AGM) meeting today. The Soul Patts share price finished the day higher by 2.4%.

One of the main takeaways was relating to its resources assets. Thermal coal prices are up 33% in the first four months of FY21. This affects its New Hope Corporation Limited (ASX: NHC) shares as one of the biggest coal miners in Australia. Soul Patts decided to sell down its holding of New Hope from 50% to 44%.

Copper and zinc prices have also gone up in the first four months of FY21, rising by 20% and 21% respectively. This relates to Soul Patts' private Round Oak business.

Soul Patts also said that that first quarter building products performance from Brickworks Limited (ASX: BKW) was well above the same period last year.

The financial services portfolio has risen 16% and the pharmaceutical portfolio has gone up 10% in the first four months of FY21.

In terms of an outlook, Soul Patts said that cash generation from the portfolio remains strong to support dividends. It also said that liquidity is available for new investments, where Soul Patts is looking across a range of industries.

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company 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

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Broker Notes

These ASX shares could rise 20% to 50%

Analysts are tipping these shares to rise strongly over the next 12 months.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A view of competitors in a running event, some wearing number bibs, line up together on a starting line looking ahead as if to start a race.
Technology Shares

Here's how the ASX 200 market sectors stacked up last week

ASX technology shares led the market with a 2.48% increase last week.

Read more »

A father helps his son look through binoculars during a family holiday or day out in the city.
Opinions

Up 190% in a year, why I think Life360 shares can keep soaring higher

This tech stock has plenty of potential.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

3 small-cap ASX healthcare shares 'with strong prospects'

Fund manager IML discusses why these 3 ASX healthcare shares are likely to rise in value.

Read more »

Magnifying glass on a rising interest rate graph.
Share Market News

Will the RBA finally cut interest rates next week?

Let's see what economists are saying about the central bank's meeting.

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors endured a rough Friday to close the trading week today.

Read more »

a man wearing old fashioned aviator cap and goggles emerges from the top of a cannon pointed towards the sky. He is holding a phone and taking a selfie.
Broker Notes

7 ASX All Ords shares elevated to 'strong buy' status in October

The brokers turned bullish on these ASX companies last month.

Read more »