BUSINESS OPPORTUNITY KNOCKS IN PNG
AUSTRALIA’S corporate watchdog has started legal action against Westpac over poor financial advice provided by one of the bank’s former financial planners, Sudhir Kumar Sinha.
Westpac has already paid about $ 12 million in compensation to clients who were affected by Mr Sinha’s poor advice.
The Australian Securities & Investments Commission ( ASIC) contends that Westpac is liable for Mr Sinha’s failure to act in the best interests of his clients while an employee of Westpac in Perth from 2001 to late 2014. ASIC also claims the bank failed to do all it could to ensure the provision of honest and fair financial services.
ASIC alleges that in four select cases Mr Sinha breached his obligations under the Corporations Act by providing inappropriate financial advice and failing to give priority to his clients’ interests.
Each breach of “best interests” obligations under the Act can attract a fine of up to $ 1 million.
The case against Westpac is listed for a directions hearing in the Federal Court in Sydney on July 19. LIVER cancer treatment developer Sirtex Medical has accepted a $ 1.87 billion takeover bid from China’s CDH Genetech after another suitor, Varian Medical Systems of the US, declined to match or beat CDH’s offer.
CDH and its strategic partner, China Grand Pharmaceutical and Healthcare Holdings ( CGP), will jointly acquire all the shares of Sirtex for $ 33.60 per share.
Sirtex has entered into a binding agreement with CDHCGP and has terminated a scheme implementation deed with Varian Medical Systems.
Varian had offered $ 28 for each Sirtex share, or $ 1.6 billion in total, which the Sirtex board had supported.
But CDH trumped that offer with a superior proposal just days before Sirtex shareholders were due to vote on the Varian offer.
CDH’s offer of $ 33.60 for each Sirtex share represents a 78.4 per cent premium to Sirtex’s share price on January 29, the day before Sirtex announced the Varian offer.
The deal requires approval from Australia’s Foreign Investment Review Board. THE time is right for Townsville businesses to “get their foot in the door” of emerging opportunities in Papua New Guinea, according to business leader and long- time PNG mining executive Peter Taylor.
Mr Taylor, in Townsville yesterday for an Australia Papua New Guinea Business Council meeting, said big investments were being made into gas and base metals projects which would create opportunities for the supply of goods and services from Townsville.
“The opportunities are there. I think we are coming out of the bottom of the cycle in the resources sector. Prices have picked up,” Mr Taylor said.
“We are talking about billions of dollars in investment which, in turn, creates opportunities for suppliers and that’s where I see Townsville coming into the picture.”
Mr Taylor said Townsville was “made to order” for supply with shipping services via the Port of Townsville, while new air services from the city to Port Moresby by Air Niugini provided more convenient connections.
“Now is the time for people in your part of the world to get their foot in the door to see what they can get involved in,” he said. “Someone has to supply these goods and services. Why not Townsville?”
Mr Taylor has been involved in PNG for 30 years, including as company chairman for one of the world’s richest copper mines, the Pangura mine on Bougainville.
More big gas projects are being planned by consortiums led by French energy company Total and US- backed ExxonMobil, while new mines or expansions are being considered for copper and gold projects Wafi- Golpu and Hidden Valley in Morobe Province.
Mr Taylor said he was personally very optimistic about Papua New Guinea’s future. He said its government, with five- year terms and Prime Minister Peter O’Neill now in his second term, was more stable than Australia’s.
He said its interest rates and inflation were low and the country had never reneged on international borrowings or appropriated property held by foreigners.
“The other thing for Australian investors is PNG’s long- term relationship with Australia and Australians,” Mr Taylor said.
“We understand one another. We speak the same language, even with the same accent.
“It does give Australians a bit of a head start.”