In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a solid gain. At the time of writing, the benchmark index is up 0.5% to 6,677.4 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

Emerge Gaming Ltd (ASX: EM1)

The Emerge Gaming share price is down 9% to 9 cents. Investors have been selling the eSports and gaming company’s shares after it provided another subscriber update for its MIGGSTER platform. Emerge Gaming has now surpassed 50,000 paid subscribers, with the majority on annual plans. However, this still represents only a fraction of the 6 million+ pre-registrations the company received.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is down 4% to $16.14. A number of travel shares have come under pressure today, possibly due to profit taking after some strong gains recently. Also weighing on Flight Centre’s shares is news that it has been dumped out of the ASX 100 index at the quarterly rebalance.

Medical Developments International Ltd (ASX: MVP)

The Medical Developments International share price is down 7% to $6.60. This decline has been driven by the completion of a capital raising. The healthcare company has raised approximately $25 million via a placement to new and existing investors in Australia and internationally. It raised the funds at an 8.5% discount to its last close price of $6.50 per new share. The proceeds will be used to support the commercialisation of its Penthrox product in Europe.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price has fallen 4% to $3.31. This morning the payments company released a trading update which revealed that transaction volumes are up 18% month to date on a same day on day basis. While this is solid growth, it is still trailing its pre-COVID growth rates.

More reading

• ASX 200 up 0.55%: Altium update, Afterpay jumps, NAB given ACCC approval
• The Emerge Gaming (ASX:EM1) share price is on a rollercoaster ride today
• Why the Medical Developments International (ASX:MVP) share price is sinking lower
• These are the 10 most shorted shares on the ASX
• Quarterly rebalance: Afterpay (ASX:APT) added to ASX 20, Kogan (ASX:KGN) joins the ASX 200

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 Medical Developments International Limited and Tyro Payments. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Medical Developments International 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 Botanix Pharmaceuticals Ltd (ASX: BOT) share price is trading higher today on news the company has completed its phase 2a clinical study for BTX 1801.

In mid-morning trade, the Botanix share price was up 8% to 13.5 cents. It has since retreated to 13 cents, up 4% at the time of writing. In comparison, the All Ordinaries Index (ASX: XAO) is currently up 0.4% to 6,915 points.

Botanix is a synthetic cannabinoid pharmaceutical company that focuses on dermatology and antimicrobial products. The BTX 1801 gel prevents surgical site infections by killing bacteria during surgery incisions. Botanix aims to combat the growing global antibiotic resistance that affects millions each year.

What’s driving the Botanix share price higher?

The Botanix share price is on the move after the company advised that all 60 of its participants have completed the BTX 1801 phase 2a clinical study. The purpose of the trial was to evaluate the safety, tolerability and efficiency of BTX 1801 for the prevention of surgical site infections.

As the data is being collated, the company plans to update the market with its report in early 2021.

Furthermore, the results will be used to support a fast-track designation and new drug application with the United States Food and Drug Administration (FDA).

Timeline of BTX 1801

In April this year, Botanix received a major boost from the FDA’s Office of Antimicrobial Products. BTX 1801 was awarded with a qualified infectious disease product status. This allows a five-year regulatory exclusivity, meaning generic products cannot enter the market. Furthermore, the company was given priority FDA review and faster two-way communication.

Last month, Botanix completed a pre-investigational new drug (IND) meeting with the FDA. The productive appointment gave the company an opportunity to seek advice and clarification on what’s required to initiate clinical studies.

In addition, the company received feedback on the drug development plan for BTX 1801 to fast-track its FDA process.

Management commentary

Commenting on the BTX 1801 progress, Botanix president and executive chair Vince Ippolito said:

There has not been a new class of antibiotic for the treatment of gram-positive bacteria in more than 30 years and serious staph and MRSA infections have become very difficult to treat.

The company has worked diligently to complete the BTX 1801 Phase 2a study despite the significant disruption caused by the COVID-19 pandemic by conducting the study in Western Australia.

About the Botanix share price 

The Botanix share price has been surging higher since COVID-19 stormed the world earlier this year. From a low of 2.3 cents in March, the Botanix share price reached a 52-week high of 15 cents 2 weeks ago.

More reading

• ASX 200 Weekly Wrap: ASX 200 hits a 6! Thank iron ore
• Hydrix (ASX:HYD) share price falling despite positive AGM update
• Vulcan (ASX:VUL) share price rises 20% and breaks new record. Here’s why.
• Why ‘ASX dividend king’ Soul Patts (ASX:SOL) is a top income share for 2021
• The Archer (ASX:AXE) share price lifts on partnership deal

Motley Fool contributor Aaron Teboneras 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.

The post Why the Botanix (ASX:BOT) share price is soaring up today appeared first on The Motley Fool Australia.

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Pointsbet Holdings Ltd (ASX: PBH) shares have slumped almost 8% in morning trade. The falling Pointsbet share price has come despite no market sensitive announcements out of the company or significant news regarding the sports betting sector. 

Pointsbet peers unchanged

Pointbet’s gambling and sports betting peers have been largely unchanged today with the Tabcorp Holdings Limited (ASX: TAH) share price down just 0.25% and United States-listed bookmaker, Draftkings Inc (NASDAQ: DKNG) closing flat last Friday. This is a far cry from the significant drop seen in the Pointsbet share price this morning.

Sports betting continues to develop in the US 

The US sports betting scene continues to develop in favour of bookmakers. States across the board continue to set monthly records for sports betting handles. Indiana set a third consecutive record month after its gaming commission reported $251.4 million wagered in November. Pointsbet re-launched its Indiana operations back in July 2020 with a first quarter FY21 turnover of $14.3 million in the state.  

The Pointsbet share price bigger picture 

Despite today’s falls, the Pointsbet share price has still surged more than 500% since its IPO back in June 2019. Even after the initial COVID-19 selloff in March, the Pointsbet share price is still up more than 150% year to date. 

The company announced a significant media partnership with NBCUniversal back in August. This deal is estimated to be worth at least $500 million as Pointsbet has committed to spend US$393 million in progressively increasing amounts over the 5-year media partnership, together with incentives payable to NBCUniversal for customer referrals. NBCUniversal has also put skin in the game with a 4.9% shareholding of Pointsbet. 

Pointsbet initiated a A$303 million capital raising at $6.50 per share to fund the deal. The entitlement offer represented a significant 48.9% discount to the closing price of $12.73 on Wednesday 2 September 2020. Shareholders also received one new option for every two shares issued under the entitlement offer. These new options are exercisable at $13.00 and expire on 30 September 2022. As a result of its capital raising, the company’s corporate cash balance sat at $436.5 million as at 30 September 2020.

Looking ahead 

Pointsbet successfully launched in Colorado in November this year and plans to launch in Michigan in the third quarter of FY21. Furthermore, the company also plans to debut its iGaming product in Michigan in the same period and in New Jersey the second half of FY21.

More reading

• The Pointsbet (ASX:PBH) share price is up 170% in 2020. Here’s why
• Why the Afterpay (ASX:APT) share price and these ASX stocks could get a boost next week
• Why has the PointsBet (ASX:PBH) share price gone nowhere since August?
• The 13 ASX shares that could have doubled your money in 2020
• Why Afterpay, Goodman, MedAdvisor, & PointsBet shares are dropping lower

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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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Biopharma Telix Pharmaceuticals Ltd (ASX: TLX) share price is trading lower this morning, despite the company announcing the completion of its acquisition of Swiss-based company, TheraPharm.

At the same time, the company also announced that TheraPharm has now completed an intellectual property (IP) agreement with the University of Southampton in the United Kingdom.

At the time of writing, the Telix share price is trading at $3.59, down 4.27%.

About the TheraPharm acquisition

Telix advised it has now acquired all of the issued capital of TheraPharm for the final upfront consideration of €10.2 million (A$16.5 million). This was done at a price of $3.75 per share. That deal was first announced in late November.

Telix also reported today that TheraPharm has now acquired the IP rights to Y-besilesomab from the University of Southampton.

Y-belY-besilesomab is a therapeutic product that Telix intends to develop for bone marrow conditioning (BMC) in patients undergoing hematopoietic stem cell transplant (HSCT) for blood cancers.

Telix says the agreement today provides it with exclusive rights to clinical data generated by the University of Southampton.

Under the terms of the agreement, Telix will pay the university approximately GBP £0.875 million (A$1.54 million) in future clinical, regulatory and commercial milestones – as well as a low single-digit royalty on net sales of commercial products.

Telix says that early observations from the university’s study demonstrate promising safety and efficacy results for Y-besilesomab as a BMC agent for patients with SALA (systemic amyloid light chain amyloidosis).

In addition, Y-besilesomab has been granted orphan drug designation (ODD) status in Europe for the broad indication of BMC, and has significant potential for fast-track development for the treatment of SALA.

Telix CEO, Dr Christian Behrenbruch, welcomed today’s development, saying:

We are delighted to be entering into collaboration with the University of Southampton, and moving Y-besilesomab into the next stage of development for the treatment of patients with SALA, following appropriate consultation with European regulatory authorities.

Other recent developments

Telix has made other progress lately.

Just last week, it announced to the market that the United States FDA has deemed that the company’s new drug application (NDA) for its flagship drug TLX591-CDx to be sufficient, and that the FDA will begin a formal review.

At the same time, the company announced that it was granted priority review status from Australia’s drugs regulator TGA.

This priority review granted Telix a significantly accelerated timeframe of 150 working days for product dossier review and approval.

About the Telix share price

The company’s progress in 2020 is reflected in the Telix share price, which has gained almost 140% this year. However, it still has a mountain to climb to reach its 52-week high of $4.33. 

The company currently commands a market cap of approximately $1 billion.

More reading

• The Telix (ASX:TLX) share price is on the move today. Here’s why.
• Telix (ASX:TLX) share price slips despite priority review status
• Why Flight Centre, Fortescue, Kogan, & Telix shares are racing higher
• Why has the Telix (ASX:TXL) share price shot up 5% today?
• Why Laybuy, Mesoblast, Sandfire, & Telix shares are charging higher

Motley Fool contributor Eddy Sunarto 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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At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) is on course to start the week strongly. At the time of writing, the benchmark index is up 0.55% to 6,680.1 points.

Here’s what has been happening today:

Altium offloads TASKING business.

The Altium Limited (ASX: ALU) share price is a fraction higher today after announcing the sale of its TASKING business for US$110 million. The electronic design software company is selling the non-core asset so it can focus on its Altium 365 platform. The deal is expected to be finalised in the first quarter of the 2021 calendar year, subject to standard conditions and regulatory approval.

Afterpay pushes higher on ASX 20 and ASX 50 inclusion.

The Afterpay Ltd (ASX: APT) share price has started the week very strongly. This follows news that the buy now pay later provider will be added to both the ASX 20 and ASX 50 indices at the December rebalance. This has given its shares a boost as it means that fund managers with strict investment mandates can now invest and index-tracking funds have to buy shares. Afterpay is replacing insurance giant Insurance Australia Group Ltd (ASX: IAG) in the exclusive ASX 20 index.

NAB MLC sale approved.

The National Australia Bank Ltd (ASX: NAB) share price is pushing higher after the ACCC gave the thumbs up to the sale of its MLC wealth business to IOOF Holdings Limited (ASX: IFL). ACCC Commissioner, Stephen Ridgeway, commented. “Transactions that combine two major firms in a sector will attract close scrutiny from the ACCC. However, feedback from customers, financial advisers and other industry participants suggested that this deal would not be likely to substantially lessen competition.”

Best and worst ASX 200 performers.

The best performer on the ASX 200 today has been the Eagers Automotive Ltd (ASX: APE) share price with a 7% gain. This follows the announcement of the sale of its Daimler truck business to United States-based Velocity Vehicle Group. The worst performer has been the Flight Centre Travel Group Ltd (ASX: FLT) share price with a 5.5% decline. A number of travel shares are sinking lower today. This could be down to profit taking after some strong gains recently.

More reading

• ASX bank shares surge after NAB (ASX:NAB) gets green light to sell MLC
• Why Afterpay, Alcidion, Eagers Automotive, & Pacific Smiles are storming higher
• IOOF (ASX:IFL) share price higher on ACCC green light for acquisition
• What’s lifting the Transurban (ASX:TCL) share price today?
• Trading at record highs, why the Eagers (ASX:APE) share price is lifting again today

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 recommends Altium. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is having yet another day in the green so far. At the time of writing, the ASX 200 has opened higher and is up 0.45% to 6,672.5 points.

And ASX banking shares are behind much of these gains.

Commonwealth Bank of Australia (ASX: CBA) shares are up 1.37% to $83.52 this morning, a new post-March high.

Westpac Banking Corp (ASX: WBC) shares are up 0.55% to $20.06, while Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares are up 1.31% to $23.24.

National Australia Bank Ltd (ASX: NAB) shares are also joining the party. The NAB share price is up 0.69% to $23.58 at the time of writing.

It’s possible we have NAB to thank for these moves today, as NAB (now the second-largest ASX bank on the ASX 200) received some welcome news this morning.

NAB offloads MLC

According to reporting in the Australian Financial Review (AFR), NAB has received the green light from the Australian Competition and Consumer Commission (ACCC) to sell its MLC wealth management business to IOOF Holdings Limited (ASX: IFL).

This sale first hit the news back in late August, with NAB announcing it had come to an agreement with IOOF to sell MLC in its entirety, for a price of $1.44 billion.

At the time, NAB CEO Ross McEwan said the following on why the bank was offloading MLC:

The sale of MLC will enable NAB to prioritise investment and focus on executing our refreshed strategy of delivering simpler, more streamlined products and processes for our customers and colleagues. NAB has taken a disciplined approach over the past two years to transform the business and prepare it for exit.

MLC is a company that provides financial advice and planning, investments, and superannuation services. It has been under NAB’s umbrella since 2000.

According to the AFR, ACCC commissioner Stephen Ridgeway said the following on the decision:

Transactions that combine two major firms in a sector will attract close scrutiny from the ACCC… However, feedback from customers, financial advisers and other industry participants suggested that this deal would not be likely to substantially lessen competition.

NAB isn’t the only bank that’s been offloading assets recently. Just last week, we heard that Westpac was selling its Pacific operations for $420 million.

And earlier in the year, we also learnt that CommBank had finalised its plans to sell a 55% stake in its Colonial First State wealth management business to private equity firm KKR for $1.7 billion.

More reading

• ASX 200 up 0.55%: Altium update, Afterpay jumps, NAB given ACCC approval
• IOOF (ASX:IFL) share price higher on ACCC green light for acquisition
• What’s lifting the Transurban (ASX:TCL) share price today?
• Why the Fortescue (ASX:FMG) share price is up 28% in December
• These are 10 of the best performing ASX tech shares of 2020 so far

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. 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 late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the week on a positive note. At the time of writing, the benchmark index is up 0.45% to 6,671.5 points.

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

Afterpay Ltd (ASX: APT)

The Afterpay share price is up almost 5% to $105.90. Investors have been buying the payments company’s shares after it was added to both the ASX 20 and ASX 50 indices at the December rebalance. When companies are added to new indices it tends to support its share price. This is because it means fund managers with strict investment mandates can now invest and index-tracking funds have to buy shares.

Alcidion Group Ltd (ASX: ALC)

The Alcidion share price has jumped 8% to 20.5 cents. This follows an announcement this morning which revealed that the South Tees Hospitals NHS Foundation Trust in the United Kingdom has extended its contract. The extension, worth an additional $2 million, will include cloud hosting on Microsoft Azure and Alcidion’s Smartpage clinical communication solution, among other things.

Eagers Automotive Ltd (ASX: APE)

The Eagers Automotive share price is up a sizeable 6% to $14.34. Investors have been buying the auto retailer’s shares after it announced the sale of its Daimler truck business to United States-based Velocity Vehicle Group. According to the release, the sale will deliver a net gain of approximately $32 million to $36 million. It includes the sale of Eagers’ Milperra property, where its Stillwell Trucks operation is based.

Pacific Smiles Group Ltd (ASX: PSQ)

The Pacific Smiles share price has stormed 13% higher to $2.39. This follows the release of a trading update which revealed that its performance has been stronger than expected. According to the release, the dental practice operator expects patient fees to grow by 25% to 30% in FY 2021. This is up from its previous guidance of 20%. As a result, Pacific Smiles expects its underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) growth to be in the range of 35% to 45%. This is up from 25% previously.

More reading

• Pacific Smiles (ASX:PSQ) share price jumps 13%. Here’s why
• Trading at record highs, why the Eagers (ASX:APE) share price is lifting again today
• These are 10 of the best performing ASX tech shares of 2020 so far
• Here’s why the Alcidion (ASX:ALC) share price is charging 8% higher
• Quarterly rebalance: Afterpay (ASX:APT) added to ASX 20, Kogan (ASX:KGN) joins the ASX 200

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 Alcidion Group Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Alcidion Group 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 IOOF Holdings Ltd (ASX: IFL) share price is up today after Australia’s corporate watchdog announced that it would not oppose the proposed acquisition of MLC Wealth Management. At the time of writing, the IOOF share price is up 1.38% at $3.68.

About today’s decision 

The Australian Competition and Consumer Commission (ACCC) has described IOOF and MLC as competitors in the supply of retail platforms for superannuation and other retirement income, and discretionary investments. The two companies also competed in providing corporate platforms for superannuation and other retirement income, financial advice for consumers and investment/asset management, the regulator found. 

“Transactions that combine two major firms in a sector will attract close scrutiny from the ACCC,” ACCC commissioner Stephen Ridgeway said. However, he added, “feedback from customers, financial advisors and other industry participants suggested that this deal would not be likely to substantially lessen competition”. 

The ACCC review indicated that post-acquisition, IOOF would still be competing with and constrained by several other large firms along with a number of smaller firms for the supply of retail platforms. The combined group would still only have a market share of approximately 10 per cent post-acquisition, and that the market would remain highly fragmented. 

Mr Ridgeway said that “despite the profile and size of this transaction, it does not raise concerns under 50 of the Competition and Consumer Act largely due to the fragmented nature of most of the relevant markets and strong constraints form remaining competitors.” 

IOOF response 

IOOF CEO Renato Mota welcomed the decision as a “key milestone in achieving approvals to complete the MLC acquisition”.

Mr Mota said the MLC acquisition was highly complementary and a natural fit with IOOF. He views this as “a unique opportunity to create Australia’s leading wealth manager” along with significant benefits through simplification and transformation for clients, members and shareholders. 

The other regulatory approval required for the transaction to proceed is the receipt of s29HA approval to own or control an Registrable Superannuation Entities (RSE) license from the Australian Prudential Regulation Authority. At this point, IOOF does not expect any change to its stated estimated completion date of prior to 30 June 2021. 

More reading

• IOOF (ASX:IFL) share price lifts after investor briefing
• Are near-zero interest rates the reason the ASX 200 is surging in 2020?
• IOOF (ASX:IFL) accused of butchering its share price
• ASX 200 events this week that could move the market

Motley Fool contributor Lina Lim 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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Last week we saw one of the most anticipated initial public offerings (IPOs) in recent memory from Airbnb Inc (NASDAQ: ABNB).

Aussie tech investors weren’t going to miss out on the opportunity and many were quick to snap up shares in the United States company.

When did Airbnb IPO?

The world-renowned vacation rental online marketplace group listed on the US-based Nasdaq last Thursday and saw its valuation nearly double in a day, closing just shy of US$100 billion.

The Airbnb share price rocketed to US$146 (A$194) at the open despite ongoing market volatility surrounding COVID-19 concerns and the US election.

This also came despite a difficult year in which the travel industry was forced to a grinding halt as the pandemic took hold and many governments closed their borders. That hasn’t slowed down Airbnb nor the IPO market which has been on fire in recent months.

How are Aussie tech investors getting in on the action?

It’s not just US-based investors that are getting in on the IPO action. Business Insider has reported huge interest in the Airbnb IPO from Aussie investors wanting to snap up another tech giant.

Stake Global Head of Marketing Bryan Wilmot reported “huge interest in Airbnb” on the Stake platform with investors having “put almost US$5 million through it”. 

Wilmot said Airbnb had attracted 10 times the trading volume of the recent DoorDash Inc (NYSE: DASH) IPO and 6 times that of fellow travel marketplace Booking Holdings Inc (NASDAQ: BKNG) for the year.

What lies ahead for Airbnb investors?

According to Business Insider, some analysts have concerns over Airbnb’s future trajectory. Warwick Business School professor John Colley said there are “significant” risks attached to the lofty valuation after the Airbnb IPO.

However, many are attracted to the stock due to its potential future growth with the company reporting its second-largest ever third-quarter revenue figure.

Foolish takeaway

Aussie tech investors were quick to snap up a chunk of the Airbnb IPO as investors everywhere piled into the stock. With new listings surging in 2020, all eyes will be on new potential investments as we head into 2021.

More reading

• How to get free Airbnb (NASDAQ:ABNB) shares

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Booking Holdings. The Motley Fool Australia has recommended Booking Holdings. 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 Transurban Group (ASX: TCL) share price is off to a positive start this week, with shares in the infrastructure group climbing 0.9% higher in early trade.

What did Transurban announce today?

The group reported that its financing vehicle for the WestConnex Group (WCX) has successfully raised $4.2 billion of new non-recourse debt.

WestConnex Finance Company Pty Limited has raised $3 billion of bank term debt facilities with tenors of 3, 5 and 7 years. The new debt raise was capped off with a $1.2 billion 2-year bridge facility.

Transurban holds a 25.5% stake in WestConnex Group, having led a consortium that purchased a majority stake for $9.2 billion in 2018.

The proceeds from the latest debt raising will be used to refinance existing facilities of $4 billion, which were established when the consortium purchase went through.

Interim CFO Tom McKay was positive on the refinancing, saying it “demonstrates the underlying strength of the WCX business and has delivered a substantial reduction in WCX’s funding costs.”

How has the Transurban share price performed this year?

The group’s share price performance has been soft this year, as the company dealt with the impact of the coronavirus pandemic.

The Transurban share price is down 7.9% for the year to $13.73 per share at the time of writing. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down just 0.5% for the year.

The group’s half-year profits climbed 11% higher in February before COVID-19 restrictions kicked in. That saw traffic numbers halve in May and June, as many would-be commuters settled into work from home mode.

The Transurban share price was under pressure again in August after reporting a 3.4% drop in revenue to record a $153 million statutory loss.

Foolish takeaway

WestConnex Group has taken advantage of the low interest rate environment to raise over $4 billion of new debt to continue propelling its operations forward. The Transurban share price has jumped higher in early trade on the news, giving the company a $37.32 billion market cap on current prices.

More reading

• Why the Fortescue (ASX:FMG) share price is up 28% in December
• These are 10 of the best performing ASX tech shares of 2020 so far
• Here’s why the Altium (ASX:ALU) share price is on watch today
• ASX 200 Weekly Wrap: ASX 200 hits a 6! Thank iron ore
• Quarterly rebalance: Afterpay (ASX:APT) added to ASX 20, Kogan (ASX:KGN) joins the ASX 200

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban 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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