Category: Stock Market

Shares in media giant Seven West Media Ltd (ASX: SWM) are trading 4.42% higher today at 59 cents apiece.

That’s well ahead of the benchmark S&P/ASX 200 Index (ASX: XJO)’s climb of 0.2% today.

Seven West shares are coming off a strong finish to the session on Tuesday when the market responded positively to its annual general meeting.

Investors were quick to pile into the company’s equity pool, sending its share price almost 5% higher on the day yesterday.

Perhaps they were impressed by the company’s dominance in the free-to-air television segment in FY21, where Seven reclaimed the top position from its peers.

This result coincided with the company’s The West newspaper outperforming its competitors last financial year.

The AGM had Seven West’s chairperson Kerry Stokes predicting the trend will continue well into FY22 judging by the group’s results so far.

Why then, amid this positive commentary, is investment banking giant UBS still undecided on the outlook for Seven West’s share price?

Read on to find out more.

UBS still unclear on Seven West’s results

Curiously, in a note out of the broker’s camp, UBS advises it is waiting on commentary from media competitor Nine Entertainment Co. Holdings Ltd (ASX: NEC) before it can make up its mind.

Specifically, it wants to hear what Nine says in upcoming releases to examine if Seven West’s results are truly organic.

The broker says it isn’t sure yet if Seven is the beneficiary of a booming TV ad market or a larger than expected share of the ad market.

If it is the overall ad market then UBS reckons Seven West’s results may not be truly reflective of an outperformance.

This reminds us of a saying from investing hall of famer Charlie Munger who is Warren Buffet’s right-hand man:

…If you’re a duck on a pond, and it’s rising due to a downpour, you start going up in the world. But you think it’s you, not the pond.

UBS appears to be noting this advice in considering whether Seven West’s results may just be from the proverbial pond rising.

Not only that, UBS also wants further evidence that Seven can maintain its outperformance in streaming via its streaming service.

These points, UBS says, are what is keeping it from upgrading its forecasts beyond the current financial year.

For instance, while it upgraded its earnings per share (EPS) target for Seven West by 9% for FY22, it has made no changes to subsequent years – for now.

Despite the reservations, the broker maintained its buy recommendation on the share, reiterating its 95 cents per share price target in doing so.

At last check, this implies an upside potential of 62% from UBS’s valuation.

Seven West share price snapshot

It’s been a year of greenery for the Seven West share price. In the past 12 months, it has soared over 197%, rallying more than 80% this year to date.

These returns are well ahead of the broad index’s gain of around 20% in that time.

The post Why is UBS so uncertain on the Seven West (ASX:SWM) share price? appeared first on The Motley Fool Australia.

More reading

• Seven West (ASX: SWM) share price jumps 4% amid return to free-to-air dominance
• Seven West (ASX:SWM) share price lifts 10% amid Prime Media acquisition
• What’s sending the Seven West Media (ASX:SWM) share price up 6% on Friday?

The author Zach Bristow has no positions 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is trading ever so slightly higher. At the time of writing, the benchmark index is up slightly to 7,437.1 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

Chalice Mining Ltd (ASX: CHN)

The Chalice Mining share price has continued its ascent and is up a further 6% to $9.23. Investors have been fighting to get hold of the mineral explorer’s shares this week following the release of the maiden mineral resource estimate for the Gonneville deposit at the Julimar Project in Western Australia. Those results revealed the largest nickel sulphide discovery in over 20 years and the largest platinum-group elements (PGE) discovery in Australian history.

Life360 Inc (ASX: 360)

The Life360 share price is up 2.5% to $12.71. This family safety app maker’s shares have been storming higher this week following the release of a bullish broker note out of Morgan Stanley. According to the note, the broker has retained its overweight rating and lifted its price target on Life360’s shares to $14.20.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is up 4% to $9.42. This is despite there being no news out of the ecommerce company today. However, with the Kogan share price down 51% in 2021, some investors may believe it has been oversold. Earlier this week UBS put a neutral rating on Kogan’s shares and cut its price target to $10.00 from $15.10.

National Australia Bank Ltd (ASX: NAB)

The NAB share price is up 4.5% to $30.20. Investors have been buying this banking giant’s shares after a number of brokers responded positively to its full year results. One of those brokers was Goldman Sachs. In response to its results, the broker has retained its conviction buy rating and lifted its price target on the bank’s shares to $31.15.

The post Why Chalice Mining, Life360, Kogan, and NAB shares are storming higher appeared first on The Motley Fool Australia.

More reading

• These 3 ASX shares have just been named as broker buys
• Chalice Mining (ASX:CHN) share price leaps another 8% on the back of historic discovery
• ASX 200 (ASX:XJO) midday update: NAB hits 52-week high, CSL upgraded
• NAB (ASX:NAB) share price hits 52-week high on bullish broker note
• 5 things to watch on the ASX 200 on Wednesday

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 shares of and has recommended Kogan.com ltd and Life360, Inc. The Motley Fool Australia owns shares of and has recommended Kogan.com 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 Renu Energy Ltd (ASX: RNE) share price is rocketing in late morning trade. Shares are up 46.34% at time of writing after earlier posting incredible gains of more than 76%.

Below we take a look at the acquisition announcement that looks to be driving investor interest in the microcap ASX renewable energy share.

What acquisition was announced?

The Renu Energy share price is soaring after the company reported it has entered into a Share Purchase Agreement to acquire 100% of Countrywide Renewable Hydrogen Limited (CRH).

Australian based CRH initiates green hydrogen projects, developing those together with project partners and governments. Outside of Australia the CRH has “a pipeline of opportunities” in Canada and the United States.

Renu will fund the acquisition via the issue of 134,659,520 shares, valued at 6.88 cents each, well below the current 14 cent Renu share price.

The company said the all share deal will enable it to preserve its cash, and that CRH will be debt free once the agreement is finalised, with additional cash available to pursue clean energy opportunities.

Commenting on the acquisition, Renu Energy’s chairman Boyd White said:

This agreement with Countrywide Renewable Hydrogen is the third investment in Renu Energy’s renewable and clean energy incubator/accelerator strategy. The transaction will provide the company with access to a compelling market opportunity in green hydrogen.

CRH has a strong leadership team and we will be excited to welcome both Geoff [Drucker] and Susan [Oliver] to the Renu Energy Board of Directors. Renu Energy will also gain considerable expertise of other key CRH personnel…

Renu Energy’s CEO Greg Watson added, “We are particularly attracted to the company’s origination expertise, existing portfolio of opportunities, as well as CRH’s overseas pipeline of opportunities.”

The acquisition remains subject to the customary approvals.

Renu Energy share price snapshot

The Renu Energy share price is up a whopping 300% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) gained 19% in that same period.

Over the past month Renu Energy shares are up 140%.

The post Here’s why the Renu Energy (ASX:RNE) share price is rocketing 46% today appeared first on The Motley Fool Australia.

More reading

• Codan (ASX:CDA) share price edges higher on CEO replacement
• PointsBet (ASX:PBH) share price tipped to surge 44% higher
• Why is the Regional Express (ASX:REX) share price underperforming Qantas lately?
• Why did the DigitalX (ASX:DCC) share price fall 10% this morning?
• These 3 ASX shares have just been named as broker buys

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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The Codan Limited (ASX: CDA) share price is in positive territory during early afternoon trade. This comes after the technology company announced a leadership reshuffle for its top job.

At the time of writing, Codan shares are fetching $10.45, up 0.58%.

Codan finds CEO successor

Investors are pushing Codan shares higher after the company updated the ASX with its latest news.

In its announcement, Codan advised it has appointed Alf Ianniello as the new managing director and CEO.

Ianniello brings a wealth of experience to the role, having been CEO of Adelaide-based Detmold Group for 14 years. Prior to that, he held a number of senior positions during his 12-year international career. These include roles at automotive and defence companies, Schefenacker Vision Systems, and British Aerospace

Ianniello has a Bachelor of Engineering, majoring in Electronic Engineering. He completed the Wharton Business School Global CEO program at the University of Pennsylvania in 2012.

The inclusion follows an extensive search process which found a strong list of candidates, both internal and external.

Ianniello is expected to start with Codan on 4 January 2022 following the completion of his notice period. Outgoing Codan managing director and CEO Donald McGurk will retire from the role at that time.

Codan chair David Simmons commented:

On behalf of the Board, I am delighted to announce Alf’s appointment. Having served on the Detmold Board for eight years up until 2019, I was able to see at first-hand that Alf was an outstanding CEO and leader. He has a proven track record of leveraging innovation and organisational capabilities and achieved significant growth in sales and profitability during his time as CEO, with revenues reaching US$450 million.

Our search criteria of appointing a CEO with international experience whilst running a complex business at scale has been fulfilled with Alf’s appointment.

About the Codan share price

It’s been a disappointing 12 months for Codan investors, with the company’s shares falling around 5% over the period. Year-to-date hasn’t fared any better, down almost 7%.

Codan presides a market capitalisation of roughly $1.88 billion, with approximately 180.88 million shares outstanding.

The post Codan (ASX:CDA) share price edges higher on CEO replacement appeared first on The Motley Fool Australia.

More reading

• Why Ausnet, Charter Hall, Codan, and Imugene shares are storming higher
• These were the worst performing ASX 200 shares in October
• These were the worst performing ASX 200 shares last week
• Why Codan, IOOF, Orocobre, and PointsBet shares are tumbling
• Codan (ASX:CDA) share price hits new one-year low

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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The PointsBet Holdings Ltd (ASX: PBH) share price is pushing higher again on Wednesday.

In afternoon trade, the sports betting company’s shares are up 0.5% to $8.85.

Can the PointsBet share price push higher?

The good news for investors is that one leading broker believes the PointsBet share price could still run a lot higher from here.

According to a note out of Goldman Sachs, its analysts have retained their buy rating and $12.79 price target on the company’s shares.

Based on the current PointsBet share price, this implies potential upside of 44% over the next 12 months.

What did Goldman say?

Goldman was pleased to see that PointsBet has been recommended for one of nine mobile sports betting licenses in New York.

It commented: “We see this as a positive development for PBH and believe this should be well-received by the market given i) our views of the growing asymmetric risks inherent in the PBH share price in particular around the NY RFP process, and ii) recent share price weakness.”

Goldman notes that New York was one of the largest states in its total addressable market (TAM) model for PointsBet.

“We note that NY represents one of the largest states in our US OSB TAM model, at US$1.4 bn at maturity, accounting for 3.8% of total, though we modeled a lower TAM due to the challenging structure.”

“If NY were modeled like a typical “Tier 1” state (~22bps of consumption expenditures), the market size could be as higher than what we currently embed (as high as $3.8bn), but the market could see lower penetration of consumer expenditures if adoption lags due to better lines/promos in neighboring states, less conversion from the grey market,” it added.

Nevertheless, Goldman believes investors should not underestimate the value in gaining a New York licence.

“That said, we believe the strategic merits in obtaining licensing in a large state like NY should not be underestimated particularly given PBH’s presence in neighboring states of New Jersey and Pennsylvania,” it concluded.

All in all, Goldman believes the company is well-placed for strong long term growth. In light of this, it sees a lot of value in the current PointsBet share price.

The post PointsBet (ASX:PBH) share price tipped to surge 44% higher appeared first on The Motley Fool Australia.

More reading

• Why Brainchip, Chalice, Life360, and PointsBet shares are surging higher
• ASX 200 (ASX:XJO) midday update: NAB result disappoints, PointsBet surges
• PointsBet (ASX:PBH) share price on watch after New York update
• Zip (ASX:Z1P) and these ASX tech shares are rated as buys
• Top brokers name 3 ASX shares to buy next week

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 shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet 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 Regional Express Holdings Ltd (ASX: REX) share price is having a good day on the ASX today but the boost isn’t enough to combat its recent poor performance.

The REX share price has slid 6% over the last 30 days despite releasing no news to the market. It’s currently trading at $1.525, 3% higher than its previous close.

Meanwhile, fellow ASX airline Qantas Airways Limited (ASX: QAN) has seen its share price take off. While it’s in the red today, Qantas’ stock is currently trading for 3% more than it was this time last month.

So, what’s causing one airline’s shares to nosedive while the other’s soar? Let’s take a look.

REX share price plummets, Qantas’ takes off

The REX share price’s recent tumble might have stemmed from a lack of news rather than any negative updates.

The last time the market heard price-sensitive news from REX was in late September when the airline announced it would resume flights on 31 October following an extended standdown.

The airline’s predicted restart aligned with when it expected its frontline staff to be fully vaccinated against COVID-19. The company announced in a press release that it achieved this goal on 1 November.

REX plans to restart its regional New South Wales services, and flights between Melbourne, Sydney, and Canberra from 15 November. Flights between Melbourne and Adelaide will take off from 26 November. Finally, flights to the Gold Coast from Sydney and Melbourne will begin on 17 December.

Meanwhile, Qantas has graced the market with 2 price-sensitive announcements over the last month.

First, it sold 13.8 hectares of land in Sydney’s Mascot for $802 million. The funds will be put towards paying off the airline’s debt.

Then, on 22 October, Qantas announced it was bringing forward its plans to get back into international airspace.

The airline and its budget leg, Jetstar, will both be taking off more than 4 weeks earlier than planned after New South Wales and Victoria opened their borders to international travel on 1 November.

Since Australia’s international borders reopened – at least in New South Wales and Victoria – the Qantas share price has gained 7%.

Sadly, the REX share price hasn’t enjoyed such a boost. Most likely because it only operates domestic services.

The post Why is the Regional Express (ASX:REX) share price underperforming Qantas lately? appeared first on The Motley Fool Australia.

More reading

• Which ASX transport shares were the best performers during October?
• Regional Express (ASX: REX) share price slumps amid new regional competition

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. 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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The DigitalX Ltd (ASX: DCC) share price has had a rather interesting time so far this week.

DigitalX shares experienced back-to-back gains on Monday and Tuesday this week, rising 15% on Monday and another 21.7% on Tuesday. Break out the champagne. But today, it’s been a different story. DigitalX shares closed at 14 cents yesterday, and opened at 13 cents this morning (a loss of 7.15%) before dropping down to 12.5 cents. That’s a loss of 10.7%.

But since open, the company has rebounded somewhat. It’s currently trading at 13 cents, down 7.14%. So what on earth is going on here that could spark such whiplash-inducing volatility?

Well, to understand that, let’s backtrack a little. DigitalX likely had such a strong start to the week due to the update it posted on Monday morning. As we covered at the time, DigitalX notched a new record high for funds under management (FUM) with $38.99 million as of 31 October. That figure represents a 36.8% increase on the prior month, helped by both inflows and booming cryptocurrency pricing.

This impressive performance was driven by DigitalX’s two investment funds, the Bitcoin Fund and the Digital Asset Fund, which were up 37.46% and 27.82% respectively over the month. Year to date, these two funds are now up 105.7% and 285.7%, respectively.

These figures are probably behind DigitalX’s breakneck share price appreciation earlier this week.

So why did the DigitalX share price get the wobbles today?

DigitalX share price takes a breather after its run

Well, it’s not entirely clear. There has been no other news or announcements out of the company today (or yesterday, for that matter).

Cryptocurrency prices have pulled back slightly over the past 24 hours or so, with Bitcoin (CRYPTO: BTC) retreating from the record high of roughly US$68,500 it hit yesterday by around 1.8%. It’s still asking around US$67,000 per coin at the time of writing, so not too much to phone home over.

It’s possible that after the stellar run this company went on over Monday and Tuesday, investors have decided to take a break today and perhaps get some profits off of the table.

Whatever the reason for DigitalX’s share price wobbles today, investors don’t have too much to objectively complain about. DigitalX shares are still up 22.7% over the past 5 trading days, and up almost 93% over the past 6 months.

At today’s DigitalX share price of 13 cents, this company has a market capitalisation of $103.55 million.

The post Why did the DigitalX (ASX:DCC) share price fall 10% this morning? appeared first on The Motley Fool Australia.

More reading

• DigitalX (ASX:DCC) share price surges 10% on Bitcoin update
• Why has the DigitalX (ASX:DCC) share price rallied 57% in a month?

Motley Fool contributor Sebastian Bowen owns shares of Bitcoin. 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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The ASX is off to a flying start today. The benchmark S&P/ASX 200 Index (ASX: XJO) has gained 0.18% to 7447 points from the open while the All Ordinaries (ASX: XAO) is also in the green.

With this comes a number of broker notes from leading investment firms covering ASX shares.

Here are three companies that analysts have labelled as buys today — and the reasons for doing so.

Scentre Group (ASX: SCG)

An update from investment bank JP Morgan covers Scentre Group’s recent deals in the retail property space, which it feels the market is underappreciating.

The broker notes that Scentre Group is trading at 15x its funds from operations (FFO) and presents with a 5% distribution yield.

It suggests “[Scentre’s] 14% discount to net tangible assets implies a further 10% decline in asset values transactions supporting current book values”.

This, it reckons, is an unfair punishment for Scentre Group’s share price. According to the broker, this could bode well for future investors.

As such, JP Morgan has lifted its price target on the Scentre Group share price by 9.4% to $3.50, implying a 12% upside potential at the time of writing.

Scentre Group shares are currently swapping hands at $3.125 cents apiece.

Computershare Ltd (ASX: CPU)

Morgan Stanley has upgraded its price target on Computershare by 20% to $21.50 in an updated analysis today.

The broker believes the provider of issuer and mortgage services has the potential to upgrade its FY22 guidance in support of its view.

Although it acknowledges “wage pressures”, Morgan Stanley also notes Computershare’s current “management” earnings per share (EPS) guidance that calls for a 2% growth in FY22.

This is backed by the broker’s estimates on interest rate hikes, strong corporate action, and various cost-cutting exercises.

Specifically, Computershare’s exposure to longer-term interest rates – up to 5 years – is attractive to the broker.

As such, Morgan Stanley forecasts a robust schedule of growth in EPS of 10% in both FY23 and FY24, helping it arrive at the $21.50 price target.

Shares in Computershare are now changing hands at $19.26 apiece, dipping into the green in early trading. As for the last 12 months, they have gained 43%.

National Australia Bank Ltd (ASX: NAB)

Economic recovery and NAB’s market-leading position are key drivers to the bank’s share price outlook, according to a note from Goldman Sachs.

The broker reckons that NAB’s asset quality is “clean” and of a high grade. It also notes management’s guidance in the bank’s business and private banking divisions don’t appear to impact margin performance.

Following the release of its FY21 results, Goldman was pleased by NAB’s balance sheet expansion and has reiterated its buy recommendation on the ASX share.

JP Morgan agrees, comparing its earnings outlook with that of fellow Australian banks in the Big 4 club.

It too likes NAB’s forecasts on its business banking segment. The broker says it “sets NAB apart, with a return on equity profile second only to CBA in the major banks”.

It also reckons NAB offers the best risk/reward profile in the sector, subsequently reiterating its overweight recommendation as well.

At the time of writing, the NAB share price is commanding $30.055, climbing 4% from the open.

The post These 3 ASX shares have just been named as broker buys appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: NAB hits 52-week high, CSL upgraded
• NAB (ASX:NAB) share price hits 52-week high on bullish broker note
• 5 things to watch on the ASX 200 on Wednesday
• Why Actinogen, AVITA, Inghams, and NAB shares are falling
• The NAB (ASX:NAB) dividend doubled in FY21: Here’s what you need to know

The author Zach Bristow has no positions 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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The Chalice Mining Ltd (ASX: CHN) share price is flying higher again today. Excitement is still in the air after the minerals explorer proclaimed to the market yesterday that it has made the largest nickel sulphide discovery in more than 20 years, and the largest platinum discovery in Australian history.

At the time of writing, shares in the company are up 8% to $9.42. Impressively, this takes the Chalice Mining rally to approximately 30% in two days.

Let’s recap the news that put all this into motion.

Going down in history

The contents of yesterday’s announcement from Chalice Mining represents a historical moment in Australian mining and exploration history. Investors are still brimming with excitement after the company released its maiden mineral resource estimate for the Gonneville deposit at its 100%-owned Julimar Project in Western Australia.

According to the release, the deposit is of tier-1 scale, containing a mix of oxide, transitional, and sulphide mineralisation. Impressively, the inferred mineral resource is estimated to be 10 million ounces (Moz) of palladium, platinum, and gold. In addition, 530kt of nickel, 330kt of copper, and 53kt of cobalt are also inferred.

The discovery of platinum group elements marks the largest in Australian history. These elements are gaining more interest as they have numerous uses in hydrogen applications. Because of this, the company believes Gonneville could make for a world-class green metals project.

More to come for the Chalice Mining share price?

Having already achieved historic status, Chalice Mining continues to explore the extent of the resource. Currently, the miner is conducting drilling, with assays pending on around 160 drill holes.

Furthermore, Gonneville remains open at the Julimar State Forest boundary to the north. At present, Chalice is awaiting approval to drill over an additional strike length of around 10km.

Investors might be still be speculating on the Chalice Mining share price for a potential increase in the inferred mineral resource, dependent on the results of future drills.

Any additional upside would only add to the already 208% return from the company’s shares over the past 12 months.

The post Chalice Mining (ASX:CHN) share price leaps another 8% on the back of historic discovery appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Why Brainchip, Chalice, Life360, and PointsBet shares are surging higher
• Why the Chalice Mining (ASX:CHN) share price is rocketing 19% today
• Why is the Chalice Mining (ASX:CHN) share price struggling today?
• Minerals 260 (ASX:MI6) share price leaps 36% following IPO

Motley Fool contributor Mitchell Lawler 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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The Santos Ltd (ASX: STO) share price is in the red this afternoon. Meanwhile, Santos’ planned merger with Oil Search Ltd (ASX: OSH) is facing another delay.

The oil giants’ merger is subject to approval from Papua New Guinea courts. However, Oil Search’s court date has today been pushed back for the second time.  

At the time of writing, the Santos share price is $6.905, 0.65% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 0.07% today, while the All Ordinaries Index (ASX: XAO) is down 0.02%.

Let’s take a look at the latest news of the creation of a regional oil giant.

New merger delays

The Santos share price is sliding today amid Oil Search’s Papua New Guinean court date being pushed to tomorrow.

Oil Search was initially set to face court in late October. On the final session of last month, it was announced the appearance had been pushed back until today.

Now today is here, the first court date has been delayed until tomorrow at the request of the Papua New Guinea National Court.

According to reporting by the Australian Financial Review, full documentation for the merger was meant to be released to the ASX today.

Prior to the delays, the companies expected their merger would be effective on 2 December.

However, that schedule will likely be scrapped. Oil Search stated it will update the market when a new timetable has been approved by the court.

Upon completion of the merger, the resulting entity will have a $21 billion valuation. The all-scrip deal will see Oil Search holding around 38.5% of the new company and Santos owning approximately 61.5%.

In addition to approval from Papua New Guinea courts, the deal is subject to regulatory and shareholder approval.

Santos share price snapshot

Since the proposed merger between Santos and Oil Search was announced, the Santos share price has gained around 14%.

It is also currently 7% higher than it was at the start of 2021.

The post Santos (ASX:STO) share price slips as Oil Search merger delayed again appeared first on The Motley Fool Australia.

More reading

• Why is the Oil Search (ASX:OSH) share price having such a great start to the week?
• 5 things to watch on the ASX 200 on Monday
• Santos (ASX:STO) slips amid CSIRO carbon capture partnership
• 5 things to watch on the ASX 200 on Friday
• Move over Twiggy, here’s why Santos’ (ASX:STO) boss is focused on blue hydrogen

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. 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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