The Perpetual Ltd (ASX: PPT) share price is frozen during Monday morning following the company’s $2.4 billion takeover offer.

At the time of writing, the fund manager’s shares are halted from Friday’s closing price of $34.23.

What’s going on with Perpetual shares?

Investors will have to wait for a pending announcement by the company before Perpetual shares open up for trading.

Earlier today, Pendal Group Ltd (ASX: PDL) advised that it received a conditional, non-binding indicative proposal from Perpetual.

The latter is hoping to acquire 100% of Pendal shares by way of a scheme of arrangement.

According to the details, the indicative proposal has valued $6.23 per Pendal share based on its closing price on Friday. This represents a 35.4% premium to its 30-day volume weighted average price prior to 1 April.

The consideration is for 1 Perpetual share for every 7.5 Pendal shares, along with a $1.67 cash offer for each Pendal share owned.

While the Pendal board is assessing the offer, Perpetual is preparing to release its own statement to the ASX.

It’s worth noting that the proposal from Perpetual is subject to a number of conditions that need to be met. This includes due diligence, negotiation and execution of transaction documentation, regulatory approvals and no material adverse change to Pendal.

Perpetual share price snapshot

A rollercoaster 12 months has led the Perpetual share price to register a 3% gain for the period.

However, after touching a 52-week low of $31.96 in late January, the company’s shares are down 5% year to date.

Perpetual has a price-to-earnings (P/E) ratio of 28.84 and commands a market capitalisation of roughly $1.94 billion.

The post Perpetual (ASX:PPT) share price halted amid Pendal takeover bid appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO): Perpetual makes Pendal offer, Iluka hits record high
• Pendal (ASX:PDL) share price rockets 23% on $2.4b takeover approach

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 S&P/ASX 200 Index (ASX: XJO) rallied strongly in March, but some ASX sectors did particularly well.

ASX shares gained nearly 7% in the month, which was around 320 basis points ahead of the S&P 500 Index, according to Macquarie Group.

The outperformance was even starker compared to the 7.7% crash in the MSCI China Index.

Best performing ASX sector in March

ASX technology shares were the best performing sector in March as the group gained over 13%. Bargain hunting was a key driver for tech shares, as many had tumbled hard in the first two months of 2022.

For instance, the Block Inc CDI (ASX: SQ2) share price surged over 19%, while the WiseTech Global Ltd (ASX: WTC) share price added 17%.

The Computershare Limited (ASX: CPU) share price was another standout last month.

“CPU (+14%) was also an outperformer in March, supported by the rise in bond yields,” said Macquarie.

“While strong, the returns from Technology have less impact on the overall market return as the sector accounts for <4% of the index (vs ~28% for the S&P 500).”

ASX sectors contributing the most index points last month

This means it was up to ASX mining shares and ASX bank shares to do the heavy lifting. Both of these ASX sectors were the largest contributors to the rise in the ASX 200 and All Ordinaries Index (ASX: XAO).

“We think Banks and Resources are benefiting from increased global interest, and that an increased allocation to Australian equities could come at the expense of markets with higher geopolitical risk (e.g. China) and/or net importers of commodities (e.g. Europe),” added Macquarie.

The ASX energy sector also contributed to the outperformance of our market. Russia’s invasion of Ukraine has turned the energy market on its head. Russia is one of the largest oil and gas suppliers, and global sanctions threaten to cut off this major supply source.

Big earnings upgrades

The big run-up in energy and other commodities prompted Macquarie to double its ASX FY22 earnings per share growth estimate to 26%. This is due to upgrades for ASX resources shares.

On the flip side, the worst-performing ASX sector in March is real estate, noted Macquarie. This is due mainly to rising bond yields, although it may be too early to throw in the towel.

Don’t count the worst-performing ASX sector out yet

“We note 2021 also saw a sharp bond yield spike early in the year, but that rebalancing of portfolios at the start of 2Q21 led to a decline in bond yields,” said Macquarie.

“We think this could occur again, especially if we are right that there is a growth scare over the next 3-6 months, as global policy tightening, and high commodity prices are US growth headwinds.”

While this ASX sector may have been out of favour last month, at least it still managed a 1% plus gain.

The post These were the best and worst performing ASX sectors in March appeared first on The Motley Fool Australia.

More reading

• Own AMP shares? Here’s how this ASX company did in March
• ASX 200 (ASX:XJO): Perpetual makes Pendal offer, Iluka hits record high
• Here’s why the performance of ASX 200 shares is smashing the S&P 500
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares during the first quarter

Motley Fool contributor Brendon Lau owns Block, Inc. and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc. and WiseTech Global. The Motley Fool Australia owns and has recommended Block, Inc. and WiseTech Global. The Motley Fool Australia has recommended Macquarie 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 AMP Limited (ASX: AMP) share price hasn’t exactly made a name for itself as a strong ASX performer. The financial services company is up a robust 1.57% at 97 cents a share at the time of writing.

But over the past five years, the picture is shockingly bleak. Since April 2017, AMP shares have lost more than 81% of their value. Although AMP has been dealing with a number of issues over a number of years, most of these losses came in the wake of the company’s exposed misconduct during the 2018 banking royal commission.

But let’s not get too bogged down in the past and instead examine how this ASX 200 share fared over March, the month that has just passed.

So AMP shares began March at a price of 95 cents. Last Thursday, the company finished the trading day at 97 cents per share. That translates into a March gain of 2.11% for AMP. In contrast, the S&P/ASX 200 Index (ASX: XJO) had a very successful month, rising by a pleasing 6.4%.

So what might have prompted this more muted gain from AMP?

AMP shares rise in March but lose to the ASX 200

Well, we didn’t get a lot of news out of the company over March. Back in February, AMP seemingly disappointed investors when its half-year earnings came without a dividend. So that might have played a role last month too.

Perhaps the biggest piece of March news came just last week. Last Monday, AMP announced that it had successfully finalised the sale of its Global Equities and Fixed Income division to Macquarie Group Ltd (ASX: MQG).

Although this sale was first gazetted last year, it represents a milestone for the company as it helps set up AMP for the planned demerger of its Collimate Capital division. The sale to Macquarie Asset Management will see roughly $47 billion in assets under management transferred to Macquarie. In return, AMP will receive $63 million in cash, with the possibility of another $75 million down the road, depending on some conditions.

Still, this news had little impact on AMP shares at the time, although the company’s share price has risen since this announcement was released. But even so, shareholders will no doubt welcome the gain AMP shares saw over March.

At the current AMP share price, this ASX 200 financials share has a market capitalisation of $3.16 billion.

The post Own AMP shares? Here’s how this ASX company did in March appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO): Perpetual makes Pendal offer, Iluka hits record high
• Here’s why the performance of ASX 200 shares is smashing the S&P 500
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares during the first quarter
• These were the worst performing ASX 200 shares during the first quarter

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 Macquarie 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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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week on a positive note. The benchmark index is currently up 0.45% to 7,528 points.

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

Perpetual makes Pendal takeover offer

The Pendal Group Ltd (ASX: PDL) share price is shooting higher today after Perpetual Limited (ASX: PPT) made a takeover offer. According to the release, Perpetual has tabled the equivalent of a $6.23 per share scrip and cash takeover proposal to acquire its fellow fund manager. This values Pendal at $2.4 billion, which is actually greater than Perpetual’s own market capitalisation of ~$2 billion.

Domain shares return

The Domain Holdings Australia Ltd (ASX: DHG) share price has returned from its trading halt after completing the institutional component of its entitlement offer. Domain raised $162 million from institutional investors and will now seek a further $18 million from retail shareholders. These funds are being used to acquire Realbase. It is a leading campaign management technology platform in the Australia and New Zealand region.

Iluka shares

The Iluka Resources Limited (ASX: ILU) share price hit a record high this morning. This was driven by the mineral sands and rare earths company announcing a final investment decision on phase three of the Eneabba Rare Earths Refinery. Iluka will push ahead with phase three after its feasibility study demonstrated solid economics and significant potential for growth.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Pendal share price with a 20% gain following the aforementioned takeover approach. The worst performer on the index has been the Bank of Queensland Limited (ASX: BOQ) share price with a 3% decline. This is despite there being no news out of the regional bank. Though, it is worth noting that Macquarie downgraded its shares to a neutral rating on Friday.

The post ASX 200 (ASX:XJO): Perpetual makes Pendal offer, Iluka hits record high appeared first on The Motley Fool Australia.

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• Pendal (ASX:PDL) share price rockets 23% on $2.4b takeover approach
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• Here’s why the performance of ASX 200 shares is smashing the S&P 500
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares during the first quarter

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. 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 Wesfarmers Ltd (ASX: WES) share price is higher this morning as the company shakes up the management of its Catch business.

The underperforming online marketplace is set to move from the company’s retail segment to its shiny new digital and data division.

The change has spurred Catch managing director, Pete Sauerborn, to walk away from the business.

At the time of writing, the Wesfarmers share price is $49.60, 0.02% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.42%. Meanwhile, the S&P/ASX Consumer Discretionary Index (ASX: XDJ) has slipped 0.37%.

Let’s take a closer look at the future of Wesfarmers’ online marketplace.

Wesfarmers’ OneDigital bags a new Catch

The Wesfarmers share price is in the green on Monday amid news the company is reshuffling its Catch business as part of a transformative divisional shakeup.

Wesfarmers has been alluding to a new digital and data division led by Nicole Sheffield for some time now.

Now, more details on the division – to be named OneDigital ­– have been released. They include Catch’s move from Wesfarmers’ Kmart Group to OneDigital from 1 July.

OneDigital is already home to Catch’s recently rebranded subscription program, OnePass, as well as Wesfarmers’ Advanced Analytics Centre.

Following the announcement of the move, Sauerborn has decided to leave the business. His position will be filled in the coming months.

Wesfarmers managing director, Rob Scott said the shakeup will see all the company’s digital pure plays housed under one roof. He continued:

Each of our divisions is developing significant capabilities in data analytics and digital services to meet the specific needs of their customers.

Wesfarmers OneDigital will complement these divisional capabilities … The Catch marketplace, together with the OnePass subscription program and the Advanced Analytics Centre, provide a strong foundation for Wesfarmers OneDigital.

This will support the growth and performance of our retail divisions while providing new growth opportunities for the group.

The move comes as the online marketplace struggles following a pandemic-related boom.

Catch brought in $315 million of revenue over the first half of financial year 2022 – 4.3% less than it did in the prior comparable period.

Its earnings before interest, tax, depreciation, and amortisation (EBITDA) loss also deepened last half. It fell from a $4 million loss to a $30 million loss.

Meanwhile, Catch’s gross transaction value increased 1%.

The market will hear more of Wesfarmers’ OneDigital division during the company’s strategy briefing day in June.

Wesfarmers share price snapshot

The Wesfarmers share price has been struggling through 2022 so far.

It has slipped 17% year to date. It’s also nearly 7% lower than it was this time last year.

For comparison, the ASX 200 has fallen 0.8% year to date and has gained 9% over the last 12 months.

The post Wesfarmers share price in the green amid overhaul news appeared first on The Motley Fool Australia.

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• It’s payday for Wesfarmers shareholders today. Here’s the deal

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 owns and has recommended 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 Pendal Group Ltd (ASX: PDL) share price is rocketing on Monday after the company received a $2.4 billion takeover offer.

At the time of writing, the fund manager’s shares are up 23.44% to $5.53 apiece.

What the details of the Pendal takeover?

Pendal shares have opened up with a bang as investors digest the company’s latest announcement.

In its statement, Pendal advised that it has received a conditional, non-binding indicative proposal from Perpetual Ltd (ASX: PPT).

The latter is seeking to acquire 100% of Pendal shares by way of a scheme of arrangement.

According to the details, the indicative proposal is for a consideration of one Perpetual share for every 7.5 Pendal shares.

Furthermore, each Pendal shareholder will receive $1.67 for every Pendal share owned prior to the takeover. This represents an indicative value of $6.23 per Pendal share based on the closing price of Perpetual shares last Friday.

Should the proposed component of the scrip consideration follow through, Pendal shareholders would own approximately 48% of the merged entity.

The indicative value of $6.23 also reflects a 35.4% premium to Pendal’s 30-day volume weighted average price up until 1 April.

It’s worth noting that the proposal from Perpetual is subject to a number of conditions. These include due diligence, negotiation and execution of transaction documentation, receipt of all regulatory approvals (including ACCC and FIRB), and no adverse material change to Pendal’s operations.

However, the Pendal board did note that the indicative proposal has been offered at a time where broader market volatility has disrupted global markets. This relates to recent geopolitical instability and the economic impacts of the ongoing COVID-19 pandemic.

Nonetheless, the board has commenced an assessment of the indicative proposal, taking into account the strategic value of Pendal.

While shareholders don’t need to do anything for now, Pendal advised it will update the market as developments occur.

Pendal share price review

Despite surging today, it has been a disappointing 12 months for Pendal shares, falling by almost 15%.

Early last month, the company’s shares reached a 52-week low of $4.04 before staging a small rebound of late.

Based on valuation grounds, Pendal commands a market capitalisation of roughly $2.12 billion, with approximately 383 million shares on hand.

The post Pendal (ASX:PDL) share price rockets 23% on $2.4b takeover approach appeared first on The Motley Fool Australia.

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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 A2 Milk Company Ltd (ASX: A2M) share price was out of form in March.

During the month, the embattled infant formula company’s shares dropped 5.2%.

This compares unfavourably to a 6.4% gain by the ASX 200 index over the period.

What happened to the A2 Milk share price last month?

The A2 Milk share price came under pressure last month for a couple of reasons.

The first was comments out of the company that revealed that its operations have been impacted by the recent flooding in Queensland.

The company told The Australian that “flooded paddocks, severe pasture damage, and rising floodwaters, […] have cut off roads in low-lying areas, restricting access for milk tankers.” It also warned there could be delays collecting milk from farms.

What else?

Also appearing to weigh on the A2 Milk share price was news that smaller rival Bubs Australia Ltd (ASX: BUB) is launching a competing A2-protein based infant formula product.

The new Bubs Supreme formula range will be on the shelf in 500 Coles Group Ltd (ASX: COL) supermarkets from May. This expands the company’s shelf presence in Coles stores, which already includes Bubs easy-digest goat milk formula and Bubs Organic grass-fed cow’s milk formula.

And while this won’t be the first competing product and Bubs’ track record of launching new products is decidedly average, A2 Milk investors appear a little concerned by the move. Particularly given the difficult trading conditions it is already facing in the key China market due to a slowing birth rate and a shift in consumer preference for Chinese infant formula brands.

Is this a buying opportunity?

One broker that is likely to see the A2 Milk share price weakness as a buying opportunity is Bell Potter.

Late last month it retained its buy rating with a trimmed price target of $7.15. This compares to the current A2 MIlk share price of $5.20.

The post What happened to the A2 Milk share price in March? appeared first on The Motley Fool Australia.

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• Broker tips A2 Milk (ASX:A2M) share price to rise 30% from here

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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk and BUBS AUST FPO. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Tritium DCFC (NASDAQ: DCFC) gained 36.4% in March, according to data from S&P Global Market Intelligence. The electric vehicle (EV) charging company was taken public through a merger with a special purpose acquisition company (SPAC) in January, and its share price has seen big swings in conjunction with market momentum following the combination. 

The S&P 500 index climbed 3.6% last month, and the Nasdaq Composite index rose 3.4% across the stretch. Many companies with growth-dependent or otherwise speculative valuations saw big gains in the period, and companies in the EV and EV-charging spaces tended to be particularly big winners. 

So what

Tritium stock soared in February after the company announced at the White House that it was opening a new manufacturing factory in Tennessee. Following this news, Tritium announced a partnership that will see it providing fast chargers for Wise EV’s new national charging network.

The combination of these announcements prompted Tritium’s share price to skyrocket, but it saw a steep pullback as investors took profits on the gains and bearish momentum for the broader market spurred big valuation pullbacks for companies with forward-looking valuations. With investors becoming more bullish and open to taking on risk in March, money poured back into the company’s stock. 

Now what

Despite the explosive gains last month, Tritium’s share price is still down roughly 38% from the lifetime high that it hit in February. The company now has a market capitalization of roughly $1.3 billion and is valued at approximately 7.7 times this year’s expected sales. 

The fact that Tritium’s EV fast-charging technologies are already seeing real-world adoption is encouraging, and the company’s forward price-to-sales multiple doesn’t look particularly unreasonable given the huge room for long-term growth in the industry. On the other hand, investors should keep in mind that the company is coming fresh off of a SPAC merger, and that means that there’s still relatively limited visibility into the company’s business performance and other financials. Tritium DCFC could have big upside at current prices, but the stock also looks relatively high risk. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tritium stock skyrocketed 36% in March appeared first on The Motley Fool Australia.

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• Pendal (ASX:PDL) share price rockets 23% on $2.4b takeover approach
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Keith Noonan 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The AUB Group Ltd (ASX: AUB) share price leapt out of the gate in early trade on Monday, amid the company hosing down speculation on an acquisition.

The company’s shares are currently trading at $23, up 2.04%. But earlier, AUB shares were as high as $24.20, a 7.36% gain on yesterday’s closing price.

Let’s take a look at what the insurance broker announced today.

What is happening at AUB?

AUB has shut down speculation it will acquire London-based Lloyd’s wholesale insurance broker Tysers.

AUB confirmed it has held talks with Tysers owner Odyssey Investment Partners about the transaction.

This included discussions with the senior management team. However, this has not led to a transaction. AUB said:

Although AUB believes in the strategic rationale of the potential transaction, the discussions have not led to a transaction being agreed on terms acceptable to the parties.

AUB reported underlying net profit after tax (NPAT) soared 17% to $30 million in half-year results in February. The company attributed this growth in underlying NPAT to organic growth and the contribution from acquisitions in Australian broking and agencies.

Prime Value Emerging Opportunities fund manager Richard Ivers has recently added to existing holdings of AUB due to it being a “high quality business” that “became cheaper”.

AUB share price recap

The AUB share price is soaring 18% over the past 12 months, but it has fallen 10.7% this year to date.

In the past month, AUB shares have jumped 5.75%, while they are up 1.6% in the past week.

For perspective, the benchmark S&P/ASX 200 Index has returned about 10% over the past year.

The post AUB Group (ASX:AUB) share price leaps amid acquisition talks appeared first on The Motley Fool Australia.

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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 Austbrokers 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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Xero Limited (ASX: XRO) has long been a favourite ASX tech share of many investors. This online accounting software company has spent the past few years recording some impressive moves on the ASX boards. Enough even to invite Xero into the exclusive old WAAAX club of ASX growth shares that couldn’t seem to stop giving investors eye-watering returns a few years ago.

For some context, the Xero share price rose around 700% between April 2017 and April 2021.

But the past year has been more muted. Over the last 12 months. Xero shares have gone backwards by a painful 25%. In 2022 alone, the company has lost more than 30% of its value.

So with this sudden reversal of fortune for Xero, many investors might be wondering if this ASX tech share’s best days are behind it.

Well, one investor who still reckons Xero’s best days lie in front of the company is Raaz Bhuyan of WaveStone Capital. 

ASX expert names Xero as a buy today

Mr Bhuyan recently shared his views on Xero during a Livewire Markets podcast. Here’s why he still likes Xero shares going forward: 

But the only true technology business that we think is good in Australia is Xero… they have been quite successful in expanding overseas, and actually making a meal of it. So if you think about the businesses in Australia and New Zealand, they took on the incumbent, MYOB, and grew a business here, and they’ve gone to the UK and taken on Sage and done quite well.

We think that that’s quite good of Steve Vamos and his team, to have done all of that, and now they’re going into North America. So it feels like if the business is even half as successful in the US, they will do an incredible job. And it’s going to be one of the big tech companies I think, out of Australia…

So that’s a pretty emphatic endorsement of Xero’s future potential from an ASX investing expert.

Xero has indeed been ramping up its international expansion plans. The company’s last earnings report, which was delivered back in November last year, showed revenue growth across all geographic areas. United Kingdom revenues were up 24%, with strong growth coming from Xero’s ‘rest of world’ breakdown, which includes South Africa and Singapore. 

If Mr Bhuyan is right in his assessments, we could well continue to see growing numbers coming out of Xero for a while yet. But, of course, only time will tell. 

At the current Xero share price, this ASX tech share has a market capitalisation of $15.06 billion.  

The post Why Xero can become ‘one of the big tech companies’: ASX expert appeared first on The Motley Fool Australia.

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• The Xero share price is up 9% in just two days

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 Xero. The Motley Fool Australia owns and has recommended Xero. 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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