If you’re wanting to add some ASX dividend shares to your portfolio, then the two listed below could be ones to consider.

Here’s why analysts are positive on these dividend shares:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is this footwear focused retail group. It is the name behind a number of popular store brands such as The Athlete’s Foot, HYPE DC, and Platypus. The company also has exclusive distribution of several brands in the Australian market, including Reebok.

Although FY 2022 will be a difficult year because of lockdowns, the company has been tipped to resume its solid growth next year. For example, the team at Bell Potter is forecasting earnings per share of 10.5 cents in FY 2022 and then 16.8 cents in FY 2023 and 19.4 cents in FY 2024.

In light of this, the broker believes it is well worth sticking with Accent and recently reiterated its buy rating and put a $3.05 price target on its shares.

As for dividends, its analysts are forecasting dividends per share of 10.5 cents in FY 2022 and 16.8 cents in FY 2023. Based on the latest Accent share price of $2.43, this represents yields of 4.3% and 6.9%, respectively.

Centuria Industrial REIT (ASX: CIP)

Another dividend share for income investors to look at is Centuria Industrial. It is an industrial focused property company with a portfolio of quality assets situated in key metropolitan locations throughout Australia.

Centuria Industrial notes that its portfolio is underpinned by strong tenant base with approximately 62% of portfolio income derived from occupants directly linked to the production, packaging and distribution of consumer staples, telecommunications and pharmaceuticals.

Macquarie is a fan of the company. It currently has an outperform rating and $4.16 price target on Centuria Industrial’s shares.

The broker is also forecasting a 17.3 cents per share distribution in FY 2022 and an 18.7 cents per share distribution in FY 2023. Based on the current Centuria Industrial share price of $3.67, this will mean yields of 4.7% and 5.1%.

The post 2 buy-rated ASX dividend shares with growing yields appeared first on The Motley Fool Australia.

More reading

• Investing in ASX office, industrial and healthcare shares? Here’s the outlook for 2022
• Here’s why ASX retail shares are in the spotlight on Tuesday
• 2 buy-rated ASX dividend shares with great yields
• 2 excellent ASX dividend shares to buy next week
• 2 high quality ASX shares for a retirement portfolio

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 Accent Group. 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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) fought hard but ultimately fell short of recording a gain. The benchmark index fell 0.15% to 7,225.2 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set to end the week in a positive fashion. According to the latest SPI futures, the ASX 200 is expected to open the day 61 points or 0.85% higher this morning. This follows a strong night of trade on Wall Street, which late on sees the Dow Jones up 2.1%, the S&P 500 up 1.7% and the Nasdaq up 0.9%.

CSL acquisition news

The CSL Limited (ASX: CSL) share price will be on watch today amid reports the company is in talks to acquire Swiss-based Vifor Pharma for ~$10 billion. The biotherapeutics giant is expected to partly fund the deal with a $4 billion equity raising. Vifor Pharma is a leader in iron deficiency, nephrology and cardio-renal therapies.

Oil prices rise

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could end the week strongly after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.8% to US$66.11 a barrel and the Brent crude oil price is up 0.8% to US$69.41 a barrel. Oil prices rose despite OPEC revealing that it will continue to increase supply in January.

BHP to proceed with unification

The BHP Group Ltd (ASX: BHP) share price will be on watch today after announcing plans to proceed with its unification. The BHP Board believes unification is in the best interests of shareholders. It will result in a corporate structure that is simpler and more efficient, reduces duplication and streamlines BHP’s governance and internal processes. This will see the BHP ASX listing become its primary listing.

Gold price falls

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a difficult finish to the week after the gold price tumbled lower. According to CNBC, the spot gold price is down 0.1% to US$1,766.6 an ounce. The gold price fell after the US Federal Reserve’s hawkish rhetoric dampened its appeal.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• CSL (ASX:CSL) share price dips amid $10b acquisition rumours
• Here are the top 10 ASX shares today
• Why is the Vanguard Australian Shares Index ETF (ASX:VAS) the most successful Aussie ETF?
• ASX 200 (ASX:XJO) midday update: Afterpay sinks, Woolworths bids for API
• 2 more of Morgans’ best ASX share ideas for December

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 CSL Ltd. 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 European Lithium Ltd (ASX: EUR) share price finished in the red today. This is despite a morning surge after the company announced positive results from its Wolfsberg lithium project in Austria.

At the close of trading today, the lithium miner’s shares are down 4%, swapping hands at 12 cents.

What drove up the European Lithium share price?

European Lithium is a mining exploration and development company intent on acquiring lithium in Europe. Lithium is heavily used in electric vehicle (EV) battery technology, which is gaining momentum in Europe and globally.

Investors appeared to react well to positive test results from the company’s Wolfsberg lithium project in Austria earlier in the day.

Analysis of samples from the mine showed high-quality, battery-grade lithium product can be produced with very low impurities. The European Lithium share price jumped soon after the results were released before retreating.

European Lithium chair Tony Sage said: “Together with the recent announcements in the resource upgrades these metallurgical results further enhance the value of the Wolfsberg project.”

What else may impact European Lithium?

The Jadar Resources Ltd (ASX: JDR) share price rocketed by 20% on a new lithium deal today. Jadar signed a memorandum of understanding with Yahua International Investment and Development to sell 100% of the lithium concentrate from its lithium projects to Yahua.

Where does European Lithium fit into this? Well, the company holds a 20% stake in Jadar’s Weinebene and Eastern Alps lithium projects. In fact, the projects are located immediately adjacent to European Lithium’s Wolfsberg deposit.

European Lithium share price snap shot

The European Lithium share price surged early in the day, jumping 12% ahead of Wednesday’s closing price following the market update.

However, there appeared to be a sudden selloff of shares at the end of the day with the company finishing down 4% on the previous close. The company’s share price has rocketed 150% in the past 12 months.

The post What happened to the European Lithium (ASX:EUR) share price today? appeared first on The Motley Fool Australia.

More reading

• European Lithium (ASX:EUR) share price sinks after listing in US

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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Shares in global biotech giant CSL Limited (ASX: CSL) edged lower today and finished more than 1% in the red at $305.23.

CSL held the fort across the day, with intraday prices trading in a narrow spread of $307–$308 before a large set of trades sent its share price as low as $301.11.

Acquisition rumours?

Rumours are circulating that the Aussie biotech is set to buy Vifor Pharma, a Swiss-based company, in a deal that could see CSL fork out $10 billion.

According to reporting from The Australian, CSL might be heading to the capital markets to raise additional equity capital to the tune of $3 billion–$4 billion.

Both CSL and Vifor have been in a game of verbal ping-pong with talks of the acquisition first circulating back in March this year. If the deal goes through, it would mark the CSL’s first major acquisition in over 10 years.

It is understood that Bank of America and Goldman Sachs are to be involved with the transaction, and both banks will nab a hefty fee from CSL’s capital raise if it is successful.

Vifor states that it aims to be a leader in iron deficiency, nephrology and cardio-renal therapies, with a focus on chronic disease.

It recognised 1.7 billion Swiss Francs in revenue in 2020 and has a market cap of 6.75 billion Swiss Francs ($10.33 billion). For comparison, CSL’s market cap is $140.88 billion.

Vifor itself has been busy on the acquisition trail as well, recently confirming it bought 100% of cardio-renal biopharma company, Sanifit Therapeutics on 22 November.

Curiously, former CSL non-executive director, Abbas Hussain – who resigned from CSL’s board in June this year – was recently appointed as the new CEO of Vifor Pharma.

Hussain joined the company on 16 August and will hold tenure as Vifor’s top executive after serving on CSL’s board for 4 years.

Without further clarification from CSL itself, it is unwise to make any speculation on the matter. However, CSL is well capitalised with over $8.3 billion in net assets – of which $1.8 billion is in cash on the balance sheet.

CSL share price snapshot

The CSL share price has climbed almost 1% in the past 12 months and almost 8% this year to date.

In the past week, it has slipped almost 4% but is in the green by 2% in the past month.

The post CSL (ASX:CSL) share price dips amid $10b acquisition rumours appeared first on The Motley Fool Australia.

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The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. 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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This year has seen Australian institutions and retail investors increasingly open to crypto investment and transactions.

The Australian Federal Government is working on legislation to regulate the booming crypto market.

And the nation’s biggest bank, Commonwealth Bank of Australia (ASX: CBA), became the first Aussie bank to provide crypto services to its customers just last month. It’s a move many analysts believe other large financial institutions are likely to follow.

November also saw the launch of the first ASX listed crypto exchange-traded fund (ETF), which broke records for a new fund on its first day. While the BetaShares Crypto Innovators ETF (ASX: CRYP) doesn’t invest directly in any cryptocurrencies, it does offer ASX investors exposure to the crypto-sphere by tracking the performance of up to 50 crypto-related companies.

With this rapidly changing picture in mind, the Motley Fool turned to Feroze Medora, director of trading at global crypto platform Gemini APAC, for his insights into what’s happening, and what we can expect next.

Motley Fool: Really the multi-billion-dollar question is, is this the beginning of a country-wide mass institutional crypto adoption in Australia or just a passing fad?

Feroze Medora: Putting the number of institutions already involved in crypto aside, the growing percentage of Australian crypto investors alone can lead us to expect an even larger amount of institutional participation.

We’re at the nascency of not only crypto as an asset class but the technology behind it as well. With the huge potential this space has to offer, it would be safe to say that this is not a passing fad but the beginning of a new era.

MF: What catalysts might speed up mainstream crypto use Down Under?

FM: As it is for the rest of the world, the biggest factor that would enable even further growth for cryptocurrency in Australia is regulatory oversight. While that might not currently be in place, the Australian government has proven itself to be open to establishing the right framework to regulate crypto.

I believe that the government is working hard to establish the right frameworks to set the standard for cryptocurrency firms in the country.

MF: If the Australian government greenlights digital tokens like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), who would be the winners and losers in the current setting?

FM: Should more institutions adopt cryptocurrencies or the underlying technology, there is a fair chance of there not being any losers per se.

However, as we move closer towards a global consensus on crypto regulations, the only losers would be the non-compliant players who choose not to be responsible participants in the new digital economy.

MF: What’s the biggest trend unfolding in the crypto market our readers should keep a close eye on?

FM: While I would advise every reader to conduct their own research, there is no denying that 2021 was a banner year for non-fungible tokens (NFTs).

This was an important milestone as prior to the NFT boom, blockchain technology became synonymous with cryptocurrencies, with many overlooking the potential of the technology itself. Thanks to NFTs, we saw a new use case for blockchain gain mainstream attention and one can expect to see more new use cases in 2022.

Additionally, this year we also saw more attention given to the environmental impact of cryptocurrencies. As a result, given the innovative nature of this sector, we are seeing more efforts being made to provide sustainable solutions.

Crypto and the environment is a conversation that will not, and should not, end until a solution is reached.

The post Is Australia on the precipice of mass crypto adoption? appeared first on The Motley Fool Australia.

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• Australia’s first direct Bitcoin and Ethereum ETFs are launching

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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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Today, the S&P/ASX 200 Index (ASX: XJO) made an effort to recoup its early morning losses but was unable to overcome the downward pressure. At the end of the session, the benchmark index finished 0.15% lower to 7,225.2 points.

While there were many sectors that brought some positivity to the table today, it was a blatantly different story for tech shares. Tech investors would have had their stomachs in their mouths as the sector took a 3.2% nosedive. The biggest detractor was none other than buy now, pay later provider, Afterpay Ltd (ASX: APT).

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Worley Ltd (ASX: WOR) was the biggest gainer today. Shares in the engineering company moved 6.53% higher today. Investors flocked to the company’s shares after Morgan Stanley released a bullish broker note on Worley. Find out more about Worley here.

The next biggest gaining ASX share today was AGL Energy Ltd (ASX: AGL). The embattled energy retailer enjoyed a 3.61% reprieve today despite there being no announcements out. Uncover the latest AGL Energy details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Worley Ltd (ASX: WOR)	$10.12	6.53%
AGL Energy Ltd (ASX: AGL)	$5.45	3.61%
Genesis Energy Ltd (ASX: GNE)	$2.95	3.51%
Fletcher Building Ltd (ASX: FBU)	$6.61	3.44%
Imugene Ltd (ASX: IMU)	$0.52	2.97%
Transurban Group (ASX: TCL)	$13.85	2.52%
Commonwealth Bank of Australia (ASX: CBA)	$95.97	2.23%
Clinuvel Pharmaceuticals Ltd (ASX: CUV)	$28.71	2.17%
Domain Holdings Australia Ltd (ASX: DHG)	$5.31	2.12%
Pointsbet Holdings Ltd (ASX: PBH)	$7.27	2.11%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Why is the AGL (ASX:AGL) share price having such a stellar day?
• Why is the Vanguard Australian Shares Index ETF (ASX:VAS) the most successful Aussie ETF?
• Why API, Chalice Mining, GUD, and Worley shares are charging higher
• ASX 200 (ASX:XJO) midday update: Afterpay sinks, Woolworths bids for API
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO and Commonwealth Bank of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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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Thursday’s been a good day for the Goodman Group (ASX: GMG) share price. It hit a new all-time high for the third day in a row.

In intraday trade today the company’s stock reached a high of $24.96, a 1.1% gain on its previous closing price.

As of Thursday’s close, the Goodman Group share price had dropped slightly to trade at $24.83. Though, that’s still 0.69% higher than it was at the end of Wednesday’s session.

For context, the S&P/ASX 200 Index (ASX: XJO) fell 0.1% today.

Let’s take a look at what’s been going on with the industrial property-focused real estate investment trust (REIT).

Goodman Group share price is on a roll

The Goodman Group share price has broken its record high every day since Monday. Meanwhile, global accounting and professional services firm, BDO in Australia, released the results of its 27th Annual Survey of Australian REITs.

It found Goodman Group to be the third best performing Australian REIT for financial year 2021 (FY21). The report stated:

Goodman Group places a focus on being innovative and agile within the typically stable REIT sector. [Over FY21] they maintained a strong position to capitalise on growing e-commerce trends by having a portfolio occupancy of 98.%. The industrial sector has a relatively high barrier to entry, and high occupancy rates combined with growing rental yields placed Goodman Group in good stead to take advantage of robust demand.

Additionally, BDO found that the REIT sector beat the performance of the ASX 200 by a whopping 7.1% over FY21.

And the best performers of the sector for FY21 were industrial REIT share prices, like that of Goodman Group. They were found to have outperformed their FY20 movements by an average of 41.4% during FY21.

Whereas the share prices of office-focused REITs outperformed by 16.4% on average.

BDO in Australia Australian REIT specialist and corporate finance partner, Sebastian Stevens commented on the findings:

The industrial sector was the big [Australian REIT] winner this year because of the acceleration of online retail which fuelled demand for warehouses and logistics facilities… The future is bright for the industrial sector too, as businesses begin to bring manufacturing back onshore after serious challenges with supply chain squeeze and high freight costs.

The company’s seemingly on the same page as BDO. It recently upgraded its operating earnings per share guidance for FY22 to be more than 15%. Previously, it was estimated that figure would be around 10%.

The Goodman Group share price has increased 28% since the start of 2021. It has also gained 5.5% over the last 30 days.

The post Here’s why the Goodman Group (ASX: GMG) share price just hit an all-time high appeared first on The Motley Fool Australia.

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• ASX shares to buy for the Omicron COVID outbreak
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• Is the Goodman (ASX:GMG) share price a good buy?

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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Shares in environmental management solutions player Envirosuite Ltd (ASX: EVS) are on ice after the company requested a trading halt today.

Before the pause button was pressed, the Envirosuite share price was set to open the day at 22.5 cents, after gaining about 5% from its previous close in off-market trading.

The company requested a trading halt in preparation for an upcoming capital raise. Here are the main details.

What is Envirosuite up to?

Envirosuite wants to raise $10.5 million from the big end of town to drive growth in its water treatment technology segment.

The institutional placement is priced at 20 cents per share. This represents an 11% discount on Tuesday’s closing Envirosuite share price. It is also a 15% discount on the recent share price high of 23.5 cents.

Bell Potter and Wilsons are the book-runners and joint lead managers on the offer, according to The Australian Financial Review. Investors can expect an announcement on the completion of the capital raise on or before 6 December.

Envirosuite is looking to the capital markets after advising it has signed 2 strategic agreements with consulting company GHD.

GHD will support the scaling of implementation of “Envirosuite’s EVS Water for major water treatment facilities as well as refer prospective clients to Envirosuite”, according to an update on 24 November.

EVS Water is a 3-product platform that links artificial intelligence with leading water modelling approaches. It helps companies reduce their operational risk and expenses whilst remaining compliant.

Today’s announcement follows a previous capital raise in May. Envirosuite secured $14 million – $8 million of which was offered at a placement price of 8.5 cents per share.

That capital raising diluted Envirosuite’s share count by almost 71 million shares. It is not yet clear how many shares Envirosuite will issue during this next equity round.

Envirosuite share price summary

In 2021, the Envirosuite share price has risen by 18.4%. It began marching northwards in July but has since levelled off. It has been trading sideways for the past 2 months.

The post Halt! Why is the Envirosuite (ASX:EVS) share price paused? appeared first on The Motley Fool Australia.

More reading

• Envirosuite (ASX:EVS) share price jumps 5% on strategic splash with GHD
• This deal just caused the Envirosuite (ASX:EVS) share price to pop

The author 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 Novonix Ltd (ASX: NVX) share price continues to defy expectations. In the past month, the battery materials and technology company has set all-time high after all-time high. Even today, shares in the company finished 1.8% higher while the broader market struggled.

In the past month, the Novonix share price has gained around 44%. However, this is infinitesimal compared to the staggering 1,023% rise over the last year.

The seemingly unstoppable rise has given the battery-focused company a market capitalisation of $5.75 billion. This is despite Novonix generating approximately $5.23 million in FY21 revenue.

Clearly, there is some level of expectations for a brighter future playing into the company’s valuation. So, let’s take a look at what kind of future management is expecting.

Novonix share price rides the electric wave

The high growth thematic behind the electric revolution is not exactly a new one at this point. As more stringent climate policies are put in place, the shift towards an electric-powered society through the use of renewables could increase.

Novonix’s expertise in lithium-ion battery technology and synthetic graphite solutions have put the company in the ‘green revolution’ basket for investors.

Many analysts are forecasting an explosion in demand for lithium and other battery-related elements. For Novonix, the expected shortage in supply is where it is finding its value proposition.

At Novonix’s annual general meeting on Tuesday, CEO Dr Chris Burns highlighted an anticipated gap in the market for anode materials — which are required in the batteries of electric vehicles (EVs). He said:

Over the past year, the focus of the company has been on making preparations to scale up its synthetic graphite anode operation to fill the gap in the US supply-chain and meet the demand that will quickly escalate as the world makes its transition to electric vehicles (EVs) and greater use of stationary energy storage at all levels – utility scale, commercial scale and at the household level.

Additionally, the company made mention of its advantage in being the only fully domestic US supply chain of EV battery anode material.

Currently, anode materials travel from the United Kingdom to China, and then to the US. Instead, Novonix offers a much shorter trip by being located locally in the US.

Management’s goal of playing a big role in a growing industry has a lot of investors excited. In turn, the Novonix share price has managed to dodge the waning sentiment witnessed in the S&P/ASX 200 Index (ASX: XJO) recently. Over the last month, the benchmark index has shaved off 2.3%.

The post Novonix (ASX:NVX) share price combats today’s selloff to remain up 44% in a month. Here’s why appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX shares today
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• Here are the top 10 ASX shares today

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 APA Group (ASX: APA) share price has actually dropped in 2021 so far. What could happen next for the business?

APA has been through a bit of volatility this year. The share price has been above $10 earlier in the year and as low as $8.20 at the end of October.

APA shares have dropped by 3% this year, but the business has seen a strong recovery in the last few weeks. Since the end of October 2021, the APA share price has gone up more than 15%.

Takeover attempt

APA has been trying to buy the Australian energy infrastructure business Ausnet Services Ltd (ASX: AST) which is a large electricity transmission business. APA submitted a non-binding indicative offer for AusNet on 21 September 2021.

Management of APA considers the AusNet business to be “highly attractive”. But, AusNet has decided to proceed with the bid from Brookfield. While APA said it has received strong support from investors in both AusNet and APA for its proposed acquisition, APA said it will continue to remain “financially disciplined”.

Coincidence or not, the APA share price has risen since the date of that announcement.

Basslink debt acquisition

But APA isn’t giving up on making deals happen.

A couple of weeks ago, the business announced it had bought an interest in the debt of the business that is the borrowing entity for Basslink Pty Ltd, which owns and operates the 370km high voltage direct current electricity interconnector between Victoria and Tasmania.

Basslink is the only electricity interconnector between Tasmania and Mainland Australia. It provides two-way access to 500MW of electricity and is critical to the export of Tasmanian renewable energy to Australia’s mainland.

Basslink Pty Ltd entered into voluntary administration and receivership on 12 November 2021.

APA is interested in buying Basslink from the receivership and managers. The face value of the debt that APA acquired an interest in is approximately $99 million, which was bought at a discount and funded from APA’s existing debt facilities.

The acquisition of the debt interest in Basslink provides APA with the opportunity to work with the receivers and managers to put Basslink on a sustainable footing.

If APA is successful in acquiring Basslink, APA will work with Hydro Tasmania, the State of Tasmania, the Australian Energy Regulator and other key stakeholders to convert Basslink to a regulated asset.

APA’s strategy is to expand its electricity transmission footprint and invest in renewable energy sources.

Is the APA share price a buy?

Morgans thinks that APA is a buy, with a price target of $9.98. The broker says that APA is benefiting from the fact that its contracts with customers are linked to CPI inflation, so this is helping the business more than the decline in demand because of more expensive gas prices.

The broker thinks APA is going to pay a distribution of $0.55 per share in FY23, which translates to a forward yield of 5.8%.

The post The APA (ASX:APA) share price has gone backwards in 2021 so far. What’s next? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 shares of and has recommended APA Group. 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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