ASX 200 ends down; J-Power moves on Genex bid; Boral says yes to Seven; Star's mixed quarter

Atlassian billionaire Scott Farquhar kingmaker in Genex takeover by J-Power. Forrest vows to push ahead on Meta fight after DPP blow. 'Enhanced bid' paves way for Seven to take control of Boral. Star falls.

Inflation and rates are dominating investor sentiment this week ahead of the start of earnings updates from the US, starting this week. Picture: David Moir/Bloomberg

Welcome to the Trading Day blog for Friday, April 12. The ASX 200 index closed 0.3 per cent lower at 7788.10 points, falling for the second day running. Wall Street's Dow Jones index remained on edge, Nasdaq hit a record after fresh data eased inflation jitters.

The Aussie dollar is trading near US65.22c.

Updates

4:30 pm April 12, 2024

ASX 200 ends down 0.3pc as jitters linger

David Rogers

Australia's share market falls slightly as US inflation jitters linger after the US 10-year bond yield hit a five-month high after CPI data this week.

The S&P/ASX 200 ends down 0.3 per cent at 7788.1 after dipping to 7765.3.

It's the second fall in a row but the index adds 0.2 per cent for the week after rising for the first three days after strong US jobs data.

Friday's trading was quiet with consumer staples, consumer discretionary, property, communications and energy underperforming.

BHP falls 0.9 per cent and CBA loses 0.5 per cent.

Gold stocks jumped as gold hit a fresh record high.

4:05 pm April 12, 2024

Genex lifts as accepts J-Power offer

Megan Neil

Renewables group Genex shares rise 6 per cent to 26.5c after the company accepts a takeover bid from Japanese energy giant J-Power.

Genex says its independent board committee unanimously recommends the transaction, in the absence of a superior proposal and subject to an independent expert's conclusions.

J-Power earlier said it had signed off on internal approvals to progress the takeover deal, first announced on March 4.

J-Power will acquire all the stock it does not already own in Genex for 27.5c per share in cash. J-Power, which already owns nearly 8 per cent of Genex, has partnered with the renewable energy developer on two projects.

3:13 pm April 12, 2024

Genex in binding deal with J-Power

Megan Neil

Renewables group Genex confirms it has signed a binding deal to be taken over by Japanese giant J-Power.

Genex says its independent board committee unanimously recommends the transaction, in the absence of a superior proposal and subject to an independent expert's conclusions.

J-Power earlier said it had signed off on internal approvals to progress the takeover deal, first announced on March 4.

“The Genex IBC is unanimous in its conclusion that the transaction is in the best interests of Genex shareholders (as a whole)," non-executive Genex director Ralph Craven, who is chairman of the Genex IBC, said.

"In making this assessment, the Genex IBC carefully considered a range of matters, including its view of the intrinsic value of Genex and the certainty for Genex shareholders of the all-cash consideration, and unanimously concluded that the transaction provides an opportunity for Genex shareholders to realise their investment in Genex for cash at a significant premium to the prices at which Genex shares traded before Genex received the indicative proposal."

Genex shares are in a trading halt, and last traded at 25c, compared to the 27.5c cash offer in the takeover bid.

2:49 pm April 12, 2024 Highlight

DPP call on Meta a 'tragedy': Forrest

Paul Garvey

Andrew Forrest has vowed to push on with his legal pursuit of Facebook owner Meta Platforms, after Commonwealth prosecutors decided not to pursue money-laundering charges against the social media giant.

Dr Forrest had exercised rarely used legal powers to press criminal charges against Meta after growing frustrated by what he saw as the company’s lack of action towards fraudulent advertising featuring the likenesses of the iron ore magnate and other prominent Australians on its platforms.

But prosecutors on Friday morning told the District Court of Western Australia that they had decided to discontinue all charges after receiving a brief of evidence in the case late last year.

In a statement, Dr Forrest, the chairman of mining giant Fortescue Metals Group, said the decision was a tragedy for those who had lost their life savings through Facebook scams. “It shows that Facebook is beyond the laws of Australia, that hardworking Australians are not protected, and that scams will continue to run rampant with no recourse for those who are duped by increasingly sophisticated technology on social media platforms that take no responsibility,” he said.

2:17 pm April 12, 2024 Highlight

J-Power greenlights Genex takeover

Valerina Changarathil

Renewables group Genex will become a subsidiary of Japanese giant J-Power after its suitor signed off on internal approvals to progress its $351m takeover deal first announced on March 4.

Genex shares entered a trading halt on Friday ahead of the update. J-Power informed its investors a short time ago. The deal is subject to a number of approvals, including from the Foreign Investment Review Board and Genex' 19.99 per cent shareholder and former suitor Skip Capital, controlled by Atlassian billionaire Scott Farquhar.

Skip Capital had teamed up with US group Stonepeak Partners in August 2022 for a $346m bid to take Genex private, but walked away from the deal in December 2022.

The deal will pass on a 75 per cent vote by investors in favour of the 27.5c per share deal. J-Power holds a 7.7 per cent stake in Genex via its JPGA Partners entity. "If everything goes as planned, the share acquisition will be implemented as early as July," J-Power says in its statement on Friday afternoon. Genex shares closed at 25c on Thursday.

The bid agreement comes as Genex scrambles to find alternate solar buyers for its proposed Bulli Creek solar farm after key customer Fortescue allowed a key deadline to buy green energy for its stalled Gibson Island hydrogen plant to lapse.

1:58 pm April 12, 2024

Avita adds to downgrade declines

Valerina Changarathil

Nasdaq and ASX-listed Avita Medical's share price is down more than 20 per cent in two trading sessions after the wound care specialist downgraded first quarter revenue expectations on Thursday.

At 1.45pm AEST, its share price is off another 14 per cent to $3.41. It had closed Wednesday's session at $4.50.

For the quarter ended March 31, Avita expects commercial revenue to be in the range of $US11m to $US11.3m – below its previous forecast of $US14.8m to $US15.6m due to a slower-than-expected conversion rate of new accounts for its expanded label products for full-thickness skin defects. Full-year revenue will be at the lower end of the previously provided guidance of $US78.5m to $US84.5m.

1:49 pm April 12, 2024

Dubber completes placement

Valerina Changarathil

Less than half the eligible institutional investors have participated in software group Dubber Corporation's capital raise after it sacked its chief executive Steve McGovern over alleged misuse of more than $20m of its funds and cut its revenue guidance.

On April 10, the company announced a $24.1m capital raise – through a $20.9m entitlement offer and a $3.14m institutional placement.

On Friday, the group said the institutional entitlement offer only raised $4.5m through the issue of approximately 90.4m shares at the price of 5c each after a 47.2 per cent take-up rate.

The placement raised $3.14m through the issue of 62.8 million shares at the same price.

The placement and institutional shortfall were allocated to a range of existing and new institutional investors with no new shares being taken up by the underwriter Morgans Corporate.

Dubber Corporation chairman Neil Wilson said the completion of its institutional offer and placement "is an important step in restoring confidence in the company…" and thanked shareholders for their support during this challenging period.

12:24 pm April 12, 2024

DPP drops Meta charges in blow to Forrest

Paul Garvey

The Commonwealth Department of Public Prosecutions has dropped the charges laid against Facebook over its fraudulent advertising, in a blow to Andrew Forrest’s crusade against the social media giant.

DPP prosecutors on Friday morning told the District Court of Western Australia that the agency had decided to discontinue all charges against Facebook parent company Meta Platforms after accepting a brief of evidence in the case.

It ends a years-long quest by Dr Forrest to have Facebook criminally prosecuted in Australia over its role in proliferating fraudulent advertising on its platforms. Several Australians have lost their life savings after clicking on advertisements on Facebook featuring Dr Forrest’s likeness.

The DPP’s decision came as lawyers for Dr Forrest appeared in court in California, where the mining magnate is also attempting to pursue Meta. Dr Forrest issued a statement overnight accusing Meta of “knowingly advertising the content of criminals”.

11:53 am April 12, 2024

ASX 200 trims intraday fall to 0.3pc

David Rogers

Australia's share market halves its intraday fall as CSL and Westpac rise.

Most sectors remain in the red after mostly negative offshore leads.

The ASX 200 index is down 0.3 per cent at 7790.9 after falling to 7765.3 in quiet trading despite a tech-led 0.7 per cent rise in the S&P 500.

Eight of 11 sectors are down with energy, staples, property, materials and consumer discretionary stocks underperforming after the US 10-year bond yield rose 4 basis points to a five-month high of 4.59 per cent.

Among large drags, BHP falls 1.1 per cent, Woodside drops 1.7 per cent, Coles and Woolworths both fall 1.2 per cent and Goodman slips 0.7 per cent.

WiseTech boosts tech with a 1.1 per cent gain.

Health care turns up as CSL rises 0.7 per cent.

Banks are mostly weaker but Westpac gains 0.5 per cent.

11:50 am April 12, 2024

Cettire falls despite sales jump

Megan Neil

Cettire shares fall 6 per cent to $3.15 despite the online luxury marketplace posting a big rise in sales in the third quarter.

Cettire says it experienced strong momentum across key trading metrics in the third quarter. Its sales revenue rose 88 per cent to $191m.

“This result reflects continued strength in Cettire’s quarterly performance, with ongoing momentum in sales revenue, active customer growth and conversion to profit," Cettire founder and chief executive Dean Mintz says.

"Market conditions remain constructive and we have supplemented our strong customer proposition with marketing investment. Further, our increased focus on traffic quality has driven significant year-on-year improvement in conversion rate and an uplift in average order values."

Cettire confirmed it is registered for sales taxes in California and Texas "and is in good standing". "In addition, the company confirms it is registered for sales taxes in the vast majority of US states which have a sales tax regime and these states, together with states which do not have a sales tax regime, accounted for approximately 99 per cent of the company's US sales revenue in Q3."