Category: Stock Market

The Tabcorp Holdings Limited (ASX: TAH) share price is climbing today despite Racing NSW threatening to block its upcoming $11 billion demerger.

The New South Wales racing body is slamming the plan for Tabcorp to separate its lucrative lottery arm and its struggling wagering business, reported The Australian.

But investors appear to be unfazed. At the time of writing, the Tabcorp share price is up 2.62% to $5.48. For comparison, the S&P/ASX 200 Index (ASX: XJO) is currently flat.

Tabcorp demerger angers Racing NSW

Racing NSW wants Tabcorp to provide guarantees to protect the income the ASX company pays to the agency.

Otherwise, Racing NSW is warning it could look to the courts to stop the break-up.

“I have to protect the interests of the 50,000 participants in the racing industry in NSW and unless (Tabcorp) negotiate with us we will be left with no other option,” Racing NSW chief executive Peter V’landys was quoted in The Australian as saying.

“It’s no secret that Tabcorp’s wagering division is running poorly and that they are trying to offload a sinking ship.”

Racing NSW has a history of using the courts to get its way. This includes famously winning its case against corporate bookmakers in the High Court a decade ago that delivered hundreds of millions to racing.

How big is the legal threat to the Tabcorp share price?

However, investors may have been reassured by Tabcorp saying it doesn’t need the blessing of racing bodies. This includes Racing NSW, although it does require other regulatory clearances before the spin-off.

Tabcorp’s outgoing chief executive David Attenborough has also played down the risk of Racing NSW’s legal threats, saying management was “focused on ensuring both businesses (lotteries and wagering) perform at their best”.

No surprise to shareholders

Investors also won’t be surprised by the sabre rattling by Racing NSW. This risk was clearly laid out in Tabcorp’s demerger scheme booklet.

The company revealed it received correspondence from the body in the past year alleging the transaction would “adversely impact” the racing industry.

It also asserted that the deal would reduce the financial returns to Racing NSW and would be in breach of the agreement it has with Tabcorp.

Why the breakup could be good for the Tabcorp share price

However, shareholders are looking forward to the spin-off. History has shown that corporate break-ups often deliver superior returns to shareholders.

This includes the BHP Group Ltd (ASX: BHP) and South32 Ltd (ASX: S32) separation and the Wesfarmers Ltd (ASX: WES) and Coles Group Ltd (ASX: COL) break up – just to name a few.

The Tabcorp share price has gained around 16% over the past year, while the ASX 200 is up around 10%.

The post Tabcorp (ASX:TAH) share price jumps as possible legal action threatens $11b demerger appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Why BHP, Core Lithium, Tabcorp, and Talga shares are racing higher
• ASX 200 (ASX:XJO) midday update: Tabcorp demerger update, BHP higher, Block tumbles
• Tabcorp (ASX:TAH) share price higher following $10b demerger update
• 5 ASX shares to ride out the 2022 volatility: expert

Motley Fool contributor Brendon Lau owns BHP Billiton Limited and South32 Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Bitcoin (CRYPTO: BTC) price kicked off March trading for US$39,632.

Yesterday, just before we ticked the calendars over into April, Bitcoin was worth US$47,397, according to data from CoinMarketCap.

That’s a gain of 19.5% over the course of the month.

Why the Bitcoin price made headlines in March

The Bitcoin price made plenty of headlines in March.

And for good reason.

Early in March, and less than 2 weeks after Russia’s invasion of Ukraine, reports emerged that cryptos were being sent to help support Ukraine’s defence efforts. Among those reports, it emerged that Bitcoin had surpassed Russia’s plummeting rouble in terms of total value.

A bit later in the month, the Bitcoin price surged on the day that United States President Joe Biden signed an executive order imposing greater oversight on crypto markets. Crypto investors look to have applauded that regulatory move.

Mid-month, Bitcoin received another leg up when a potential crypto mining ban failed to gain traction among European Union parliamentarians.

The token also held up well following the first interest rate rise from the US Federal Reserve in many years, with numerous more rate hikes flagged over the coming months.

Earlier this week, on 29 March, the Bitcoin price hit a new 2022 high, erasing sizeable losses it had suffered in the first 2 months of the new year.

That new 2022 high came following news that the Luna Foundation, the organisation behind stablecoin TerraUSD (CRYPTO: UST), had bought almost 25,000 Bitcoin worth roughly US$1.1 billion.

Crypto markets resilient in March

Commenting on the recent performance of the Bitcoin price and crypto markets more broadly, Josh Gilbert, crypto analyst at multi-asset investment platform eToro, said:

Despite geopolitical tensions emerging and interest rates rising across the globe, crypto markets have demonstrated a high level of resilience. The tumultuous start of 2022 has highlighted the multitude of use cases that cryptoassets possess. Investors are now starting to see crypto as more than just an investable asset, but instead, as something that can completely shift financial systems and provide support to those in need.

On the first trading in April, the Bitcoin price is down 3.5% to US$45,598.

The post Here’s what moved the Bitcoin price 20% higher in March appeared first on The Motley Fool Australia.

More reading

• Here’s what ESG investors should know about cryptos like Bitcoin
• Mining Bitcoin is 3.5 times more expensive than digging up gold
• Bitcoin is up 25% in 10 days. Here’s what it’ll do now
• The Bitcoin price just reached a new 2022 high. Here’s why
• Why this lesser-known crypto left Bitcoin in the dust this week

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Allkem Ltd (ASX: AKE) share price is powering ahead on Friday morning following a company update regarding lithium pricing.

At the time of writing, the lithium mining company’s shares are swapping hands for $12.19, up 6.65%.

‘Strong market conditions’ support lithium carbonate and spodumene prices

In today’s statement, Allkem provided an update on expected June quarter pricing for lithium carbonate and spodumene products.

The company stated that strong market conditions have positively impacted the price received for lithium carbonate spodumene concentrate.

As such, the June quarter (FY22) average price received for lithium carbonate is expected to be approximately US$35,000 per tonne. This includes free on board (FOB) on sales of approximately 3,500 tonnes of lithium carbonate.

FOB is a shipping term used to indicate who is responsible in the case of damaged or destroyed goods.

This means Allkem retains ownership and responsibility for the goods until they are loaded ‘onboard’ a shipping vessel. Once on the ship, all liability transfers to the customer/buyer of the lithium carbonate product.

It’s worth noting that the preliminary March quarter (FY22) sales price was approximately US$27,236 per tonne. This is 9% higher than the previous guidance given by Allkem.

In addition, spodumene concentrate pricing in the June quarter is forecasted to be approximately US$5,000 per tonne based on sales of around 50,000 tonnes.

Allkem noted that March quarter sales were completed at a price of about US$2,218 per dry metric tonne (dmt). This included the spodumene concentrate that was delayed from the December quarter.

Allkem will further update the market with the final prices in the March quarterly report released on 14 April 2022.

About the Allkem share price

Over the past 12 months, the Allkem share price has surged 150% on the back of the lithium hype.

When looking at year to date, the company’s shares are up around 18%.

Based on today’s price, Allkem commands a market capitalisation of roughly $7.85 billion.

The post Allkem (ASX:AKE) share price leaps 6% following lithium pricing update appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Allkem jumps on lithium pricing update: Domain to acquire Realbase
• 2 stellar ASX growth shares analysts rate as buys
• Buying ASX shares to cash in on the EV and battery metals craze? Read this
• Leading brokers name 3 ASX shares to buy today
• Why Allkem, Firefinch, JB Hi-Fi, and Piedmont Lithium are charging higher

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and the wider world of cryptos have been put under the microscope by Morgan Stanley’s Cryptocurrency and Sustainability Research team.

Specifically, the team delved into the various facets investors placing a premium on environmental, social and governance (ESG) issues should consider before investing in cryptos.

The social and governance angles

By and large, the social and governance aspects of cryptos shouldn’t be of much concern for ESG-focused investors.

With Bitcoin run under a decentralised blockchain system, the governance falls on its supporters and users.

Socially ESG investors shouldn’t have any major roadblocks with cryptos either.

While there are various estimates as to how much crypto is used in illegal transactions, the same issues are also in play for cash.

Investors should be aware that there are still scams in the crypto markets, but they do open the door for people to transact outside of traditional financial institutions.

According to Jessica Alsford, global head of sustainability research at Morgan Stanley:

Cryptocurrencies could be one way to increase access to financial systems for the unbanked. Anyone with a smartphone or laptop and internet connection can access cryptocurrencies, which arguably is a lower requirement than that of traditional bank accounts.

The environmental concerns for investing in cryptos like Bitcoin

It really boils down to the environmental part that ESG investors will need to consider before investing in cryptos like Bitcoin, the world’s first digital token and largest by market cap.

“Every $1 of Bitcoin mined is materially more carbon-intensive than every $1 of gold mined,” says Alsford.

She estimates that Bitcoin’s carbon footprint is some 14.2 million times more than Visa Credit Card transactions. In fact, Bitcoin uses as much energy every year as all of the Netherlands, a nation of 17 million people.

Bitcoin relies on something called proof of work (PoW). That requires a massive network of computers to verify transactions, sucking up a heck of a lot of energy.

Ethereum has also been operating on a PoW system, but the world’s number 2 crypto is planning to transition to proof of stake (PoS) later this year. That’s meant not only to speed up transactions but to greatly reduce its energy use and carbon emissions.

Some analysts are also predicting the switch to PoS will see the Ethereum price head skyward.

Can’t crypto miners just use renewables?

There are a growing number of miners tapping into hydro and solar to run their Bitcoin networks.

But according to Alsford, the sheer quantity of energy required simply isn’t available via renewable sources like solar.

“We estimate that powering Bitcoin’s yearly energy requirement via green energy would require the equivalent infrastructure of the entire US solar fleet,” she said.

The post Here’s what ESG investors should know about cryptos like Bitcoin appeared first on The Motley Fool Australia.

More reading

• Why Ethereum and Dogecoin are dropping today
• Mining Bitcoin is 3.5 times more expensive than digging up gold
• Bitcoin is up 25% in 10 days. Here’s what it’ll do now
• This cryptocurrency just exploded 30% higher, overnight
• The Bitcoin price just reached a new 2022 high. Here’s why

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Vanguard Australian Shares Index ETF (ASX: VAS) unit price is seemingly plummeting today. VAS units closed at $97.21 each yesterday. But upon market open this morning, this popular ASX exchange-traded fund (ETF) opened at just $94.91 a unit. It’s currently asking $95.08, down a nasty 2.2%.

And yet the S&P/ASX 300 Index (ASX: XKO) – the benchmark index that VAS tracks – is actually up by 0.1% today thus far. So what on earth is going on? Isn’t VAS an index fund, designed to almost exactly mirror the ASX 300?

Well, yes. But today is an exception. The Vanguard Australian Shares ETF is not falling due to some strange decoupling from its index. Rather, it is falling because this ASX ETF has just traded ex-dividend distribution for its upcoming investor payment.

VAS price falls, but thank the dividend distribution

Yes, VAS pays dividends, although they come in the form of dividend distributions due to its ETF nature. The ASX 300 is an index comprised of the 300 largest companies on the ASX by market capitalisation. That means everything from Commonwealth Bank of Australia (ASX: CBA) and Woolworths Group Ltd (ASX: WOW) to Harvey Norman Holdings Limited (ASX: HVN) and Ampol Ltd (ASX: ALD).

Since this ETF holds all 300 or so companies in the ASX 300 Index in its underlying portfolio, it receives dividends from any companies in the index that pay them. In the ASX 300’s case, that is most of them, at least when it comes to the larger holdings.

So VAS is obligated to pass these dividends on to its investors. Vanguard does this every quarter, so investors can expect a dividend distribution every three months or so.

This is what is occurring today. VAS’s upcoming distribution, covering the quarter ended 31 March 2021, has just traded ex-distribution, meaning that any new investors from today won’t receive the next payment. This is due to be doled out on 20 April. This payment will be worth 199.8517 cents per unit.

This payment brings VAS’s trailing 12-month distributions to $4.66 per unit. On current pricing, that gives the Vanguard Australian Shares Index ETF a trailing yield of 4.9%.

The post Vanguard Australian Shares ETF (ASX:VAS) plummets! What’s going on? appeared first on The Motley Fool Australia.

More reading

• Hoping to bag the next Vanguard Australian Shares Index ETF (ASX:VAS) dividend? Read this
• What kind of dividends does the Vanguard Australian Shares ETF (ASX:VAS) pay?
• VAS is the ASX’s most popular ETF. But where are the tech shares?
• Warning: Only 4 ASX shares just added to ASX 300 are profitable
• Diversification? Why VAS is really a bet on banks and miners

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia owns and has recommended Harvey Norman Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The team at Goldman Sachs has been looking over the federal budget and has given its verdict on how it expects consumer spending to be impacted.

What did the broker say?

Goldman expects the budget to be supportive of consumer spending in the coming years. Though, it suspects that the spending may not be equal across the economy.

It commented:

“Within the robust consumption spend (~6.7% FY22-24e), we believe that a larger portion will return to services spending, with a catch up on lifestyle services (travel, entertainment etc, ~10.8% FY22-24e) post COVID, while Essential Services (~7.3% FY22-24e) and Staples Retail Goods (~4.4% FY22-24e) will remain a relatively stable share of spend. We expect Discretionary Retail Goods (Household equipment, clothing), which benefited most during COVID lock-downs, will see challenged growth (~-2.4% FY22-24e).”

With this in mind, the broker has named four ASX shares to buy:

Endeavour Group Ltd (ASX: EDV)

Goldman Sachs is positive on this drinks company and has a conviction buy rating and $8.00 price target on its shares.

It explained why it is positive, saying: “For the breadth of its consumer assets and depth of loyalty as well as more advanced digital transformation driving market share gain and faster sales growth and margin expansion. F&B retailers are also more defensive vs cost inflation and China supply chain disruptions given better bargaining power and more localized supply chain.”

Harvey Norman Holdings Limited (ASX: HVN)

The broker prefers Harvey Norman over rival JB Hi-Fi Limited (ASX: JBH). It has a buy rating and $5.80 price target on the former’s shares, whereas it has a sell rating and $39.00 price target on the latter.

Goldman explained: “We are cautious on home retailers due to exposure to China supply chain disruption and cost inflation risks, while competition from online pureplays such as Amazon are picking up speed. Between JBH and HVN, we prefer HVN due to more protection from online competition given higher regional and boomer exposure as well as lower valuation.”

Webjet Limited (ASX: WEB)

Goldman believes this online travel agent could be well-positioned for growth post-COVID. So much so, it has a buy rating and $6.90 price target on its shares.

The broker commented: “We expect WEB to benefit from the tailwind of travel recovery, offering structurally improved profitability and a strong outlook on the Bedbanks business, which we expect to resume the strong growth journey that it embarked on prior to COVID.”

Woolworths Group Ltd (ASX: WOW)

Its analysts are also bullish on retail giant Woolworths for the same reason as Endeavour. The broker likes the company due to the breadth of its consumer assets and wide-reaching loyalty program.

Goldman has a buy rating and $40.50 price target on the company’s shares.

The post Federal budget: Goldman Sachs names 4 ASX shares to buy appeared first on The Motley Fool Australia.

More reading

• Is the Webjet share price set to take off in April?
• Why Air NZ, Block, Eagers Automotive, and Harvey Norman shares are dropping
• ASX 200 (ASX:XJO) midday update: Tabcorp demerger update, BHP higher, Block tumbles
• Here’s why the Harvey Norman (ASX:HVN) share price is slipping today
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia owns and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Does the Flight Centre Travel Group Ltd (ASX: FLT) share price have a dividend reinvestment plan? Good question.

Dividend reinvestment plans (DRIPs) are often a popular option for investors if a company does offer one. A DRIP allows investors to automatically reinvest a dividend payment back into the company that pays it. This is done by election, and means that instead of receiving a dividend in the form of a cash payment, the investor is issued new shares of the company instead.

Many ASX shares, particularly blue-chip shares, offer dividend reinvestment plans. Some even come with a discount, meaning that if an investor chooses a DRIP, they will get a small bonus — the new shares issued will be worth slightly more than if the investor opted to receive the dividend in cash.

Remember, there’s no free lunch here though. If you reinvest your dividend through a DRIP, the Australian Taxation Office (ATO) usually still treats this situation as though you had received the cash. So a DRIP is certainly not some kind of legal tax dodge — your dividends are taxed the same way, whether they are received as cash or reinvested.

What about the Flight Centre dividend?

So that takes us to Flight Centre. Do Flight Centre shares offer a DRIP? Well, the answer is a definitive no.

For one, a company needs to actually pay out dividends if investors want to utilise a DRIP. And Flight Centre hasn’t paid a dividend for years now. Its last shareholder payment came back in October 2019. Flight Centre had actually announced a 2020 interim dividend, but the company was forced to cancel it due to the impacts of the COVID-19 pandemic.

But Flight Centre did not even offer a DRIP when it was paying a dividend anyway. Investors had no option but to receive their Flight Centre dividend in cash. If the company ever returns to paying out dividends, investors might well have the option of a DRIP when that does occur. But we shall have to wait for that day to come to see.

The Flight Centre share price has taken a tumble so far today. This ASX travel share is currently down by 1.07% at $19.47 a share. That still puts it up around 4.3% in 2022 so far though. At this share price, Flight Centre has a market capitalisation of $4.02 billion.

The post Do Flight Centre shares have a dividend reinvestment plan? appeared first on The Motley Fool Australia.

More reading

• Who owns Flight Centre (ASX:FLT) shares? You’ll want to read this
• Finally! 4 travel ASX shares ready to take off: expert
• Do Flight Centre shares pay dividends?
• Flight Centre share price edges lower despite ‘important step’
• These are the 10 most shorted ASX shares

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Starpharma Holdings Limited (ASX: SPL) share price is up 6% following a company announcement to the market this morning.

Starpharma has announced it will relaunch its VIRALEZE antiviral nasal spray in the UK after resolving issues raised by the regulator in June last year. Supply preparations are already underway and the product will be back online and in pharmacies over the next few weeks.

Starpharma share price spikes after regulator’s tick of approval

ASX investors have reacted strongly to the news today. The Starpharma share price is heading northwards for a fourth consecutive day. It is currently up 6% on Monday’s closing price, trading at 96 cents.

Starpharma paused the sale and promotion of VIRALEZE in the UK after the Medicines and Healthcare Products Regulatory Agency (MHRA) wrote to its UK retail partner, LloydsPharmacy querying promotional claims about VIRALEZE and its impact on COVID-19.

As my Fool colleague Kerry Sun wrote at the time, the correspondence related to “references to SARS-CoV-2 and COVID-19, and the interrelationship between these product claims and its categorisation”.

MHRA was not questioning the safety or quality of VIRALEZE. It was querying “allowable promotional claims” under the product’s categorisation as a medical device.

On the day of that announcement, the Starpharma share price nosedived by 9.4% to $1.54.

In laboratory studies, VIRALEZE has proven effective in deactivating many respiratory viruses, including influenza and multiple strains of COVID-19.

In its statement today, Starpharma told ASX investors that it had provided MHRA with “extensive technical
information” on VIRALEZE and its anti-viral agent, SPL7013. Overnight, the regulator gave the green light for Starpharma to recommence sales in the UK.

What did management say?

Starpharma CEO Dr Jackie Fairley said:

We are delighted to be relaunching VIRALEZE in the UK. We look forward to making VIRALEZE available to UK consumers again very soon. VIRALEZE is registered in more than 30 countries, and we look forward to rolling the product out into further markets this year.

VIRALEZE is registered as a medical device in the UK and countries across Europe, Asia, and the Middle East. It is not approved for sale in Australia.

Starpharma share price recap

The Starpharma share price hit a 52-week low of 79 cents in the middle of March. ASX investors who picked up Starpharma shares at this price have seen a 21% return on their investment in just over two weeks.

The post Here’s why the Starpharma (ASX:SPL) share price is having such a stellar end to the week appeared first on The Motley Fool Australia.

More reading

• 4 ASX healthcare shares at 52-week lows
• Here’s why the Starpharma (ASX:SPL) share price is tumbling 8% today

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

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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is having a subdued finish to the week. The benchmark index is currently down 0.1% to 7,492 points.

Here’s what is happening on the ASX 200 today:

Allkem shares jump on lithium price update

The Allkem Ltd (ASX: AKE) share price is racing higher today after the miner released a lithium pricing update. That update reveals that strong market conditions continue to positively impact the price received for Allkem’s lithium carbonate from the Olaroz Lithium Facility. For the June quarter, the average price received for lithium carbonate is expected to be US$35,000 per tonne FOB. This is up from US$27,236 per tonne during the March quarter and is more than triple the US$11,095 per tonne commanded during the first half.

Domain to acquire Realbase for $180 million

The Domain Holdings Australia Ltd (ASX: DHG) share price is in a trading halt on Friday. This is to allow the property listings company to launch an equity raising to fund the acquisition of Realbase for $180 million. Realbase is a leading campaign management technology platform in the Australia and New Zealand region. Management believes it is a highly strategic acquisition which provides complementary Marketplace offerings that progress Domain’s strategy to deliver solutions that help agents and consumers at every stage of the property journey.

Corporate Travel Management completes acquisition

The Corporate Travel Management Ltd (ASX: CTD) share price is sliding today despite announcing the completion of an acquisition. This morning the corporate travel specialist completed the acquisition of the ANZ corporate and entertainment travel business of Helloworld Travel Limited (ASX: HLO). Corporate Travel Management is paying $175 million for the business.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Allkem share price with a 7.5% gain. This follows the lithium miner’s pricing update. Going the other way, the worst performer has been the NRW Holdings Limited (ASX: NWH) share price with a 4.5% decline. This follows news that its CEO and managing director, Jules Pemberton, has sold 3 million shares on-market.

The post ASX 200 (ASX:XJO) midday update: Allkem jumps on lithium pricing update: Domain to acquire Realbase appeared first on The Motley Fool Australia.

More reading

• Why is the Corporate Travel (ASX:CTD) share price slipping today?
• Domain (ASX:DHG) share price halted for $180m equity raising to fund Realbase acquisition
• These were the best performing ASX 200 shares in March
• These were the worst performing ASX 200 shares in March
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro owns Orocobre Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Corporate Travel Management Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Corporate Travel Management Ltd (ASX: CTD) share price is in the red today despite the company completing a major acquisition.

The business-focused travel agency has officially taken on Helloworld Travel Ltd (ASX: HLO)’s corporate and entertainment travel businesses.

At the time of writing, the Corporate Travel share price is $23.62, 0.55% lower than its previous close.

The broader market is also struggling today. Right now, the S&P/ASX 200 Index (ASX: XJO) and the All Ordinaries Index (ASX: XAO) have both slipped 0.12%.

Let’s take a closer look at today’s news from the ASX 200 travel giant.

Corporate Travel share price slides on acquisition update

Shares in Corporate Travel are slumping on Friday after the company announced it had completed a $175 million acquisition.

In mid-December, Corporate Travel agreed to purchase Helloworld’s corporate and entertainment businesses, undergoing a capital raise to pay for them.

The company will now work to integrate former Helloworld brands including QBT, TravelEdge, APX, Atlas Travel, AOT Hotels, and Show Group into its offerings.

After adding those brands to its portfolio, Corporate Travel will service more than a quarter of the ASX 200.

The acquisition has also expanded its service and technology offerings in the government and education sectors.

The company paid $100 million in cash and approximately 3.57 million new shares for Helloworld’s corporate and entertainment legs.

The cash was raised via an institutional placement and share purchase plan conducted over December and January.

Today’s seemingly good news hasn’t boosted the Corporate Travel share price, but at least it’s not alone in the red.

It’s joined by the share prices of fellow ASX 200 travel stocks Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB). They’re currently down 1.32% and 1.96% respectively.

Meanwhile, the Helloworld share price is trading 0.84% higher than its previous close.

Today’s dip sees the Corporate Travel share price almost 3% higher than at the start of 2022. That’s compared to the ASX 200’s 1.2% slip over that same time frame.

The post Why is the Corporate Travel (ASX:CTD) share price slipping today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Allkem jumps on lithium pricing update: Domain to acquire Realbase
• Buy these 2 impressive ASX shares in April 2022: experts
• Finally! 4 travel ASX shares ready to take off: expert
• Top brokers name 3 ASX shares to buy next week
• Why are ASX travel shares taking off today?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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