Tag: Motley Fool

The Australian Unity Office Fund (ASX: AOF) share price is trading higher in afternoon trade. 

Late yesterday, the real estate investment trust (REIT) announced the $31.5 million sale of one of its Brisbane properties. The fund also announced it would be suspending its dividend reinvestment plan (DRP) for this quarter.

Shares in Australian Unity are trading at $2.27, up 2.25%. For comparison, the S&P/ASX All Ordinaries Index(ASX: XJO) is up 0.8%.

What did Australian Unity announce?

Australian Unity announced it had reached an agreement to sell 241 Adelaide Street, Brisbane. The $31.5 million sale price is equal to the asset’s book value as of 31 December 2020.

Australian Unity is selling the building along with the lease to the Brisbane Club. 42 years are remaining on the lease.

Speaking on the deal, fund manager James Freeman commented:

[241 Adelaide Street] was identified as non-core to AOF and we are pleased to have entered into a conditional contract to dispose of this asset. The purchaser has also entered into arrangements with the Brisbane Club to acquire the freehold. AOF’s sale is conditional upon completion of the acquisition of the freehold. We are targeting settlement prior to 30 June 2021.

In addition to the asset sale, Australian Unity also announced the suspension of its DRP for Q3 FY21.

According to the Commonwealth Bank of Australia (ASX: CBA), a DRP is an alternative method for dividend payments. Instead of the company reimbursing you its profits through cash, it will automatically invest the payment into new shares for the owner. These shares are sometimes issued at a discount. No fees are associated with the issuance of new shares.

Finally, Australian Unity confirmed it would meet its FY21 FFO guidance of 18.3 – 18.7 cents per share.

Australian Unity share price snapshot

Shares in the fund crashed at the height of the COVID-19 pandemic, reaching a low of $1.50. While they have recovered since then, the share price is still 16.23% down on this time last year.

Australian Unity has a market capitalisation of $361.6 million.

More reading

• ASX stock of the day: Why Advance Nanotek (ASX:ANO) shares are rocketing 7%
• Vulcan Energy (ASX: VUL) share price up as revenue soars over 1,000%
• Morgans just added this ASX 200 share to its model portfolio
• Why the PPK Group (ASX:PPK) share price is climbing 8%
• Why Flight Centre, Northern Star, Southern Cross Media, & Treasury Wine are sinking

Motley Fool contributor Marc Sidarous 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 Vulcan Energy Resources Ltd (ASX: VUL) share price has fired up 5.6% at the time of writing to trade at $5.89.

This comes after the company released its half-year results yesterday.

Here’s a rundown of what Vulcan reported.

Vulcan Energy HY20 financials

For the HY20 period ended 31 December 2020, Vulcan posted revenue that beat the previous corresponding period (PCP) by 1,182%. Vulcan’s HY20 revenue totalled $372 thousand compared to $29 thousand in the PCP.

The lithium producer posted a total comprehensive loss of $6 million for HY20 vs a $1.8 million loss in HY19.

As of 31 December 2020, Vulcan held $5.8 million of cash and cash equivalents compared to $3.1 million in the PCP.

Expenses related to employee benefits and investor relations both increased as Vulcan expands its operation.

Vulcan continues to push battery production

The company commissioned a series of Direct Lithium Extraction (DLE) tests during HY20 to support its battery production efforts.

The results discovered that the geothermal brine produced from the company’s Upper Rhine Valley site in Germany had a lithium recovery rate that exceeded 90% on the first pass.

In the HY report, Vulcan emphasises its intention to provide an electric vehicle (EV) battery-quality lithium to suit the European market.

The EU is the fastest-growing adapter of EVs and has strict environmental restrictions on lithium. Currently, China is the largest provider of lithium-ion batteries to the EU. Vulcan is hoping to fill that spot.

Notably, from 1 January 2026, lithium-ion batteries in the EU will require a certain class label. From 1 July 2027, carbon thresholds will be added to environmental compliance measures.

Vulcan believes it is well-positioned within its strategy to meet these needs in the future.

Vulcan Energy share price snapshot

Over the past year, the Vulcan Energy share price has exploded 2,957% higher.

At the current share price, the company’s market capitalisation is $590 million. There are 107.5 million shares outstanding.

More reading

• Why the Vulcan Energy (ASX:VUL) share price is jumping 12% today
• The Vulcan Energy (ASX:VUL) share price has fallen 17% in 2 weeks
• Vulcan (ASX:VUL) share price slumps despite new partnership
• Why the Vulcan Energy (ASX:VUL) share price is charging higher again

Motley Fool contributor Gretchen Kennedy 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 Suncorp Group Ltd (ASX: SUN) share price is outperforming its peers after Morgans added it to its model portfolio.

The Suncorp share price jumped 1% to $10.67 during lunch time trade with the major banks lagging behind.

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price gained 0.5% and Commonwealth Bank of Australia (ASX: CBA) share price was flat.

Meanwhile, the Westpac Banking Corp (ASX: WBC) share price dipped 0.4% and National Australia Bank Ltd. (ASX: NAB) share price lost 0.1%.

The ASX ugly duckling turning into a swan?

But even today’s outperformance, the Suncorp share price is lagging behind the big four ASX banks. Shares in the banking and insurance group only managed a 3% rise over the past 12-months when the big banks rallied by at least 26%.

Even the S&P/ASX 200 Index (Index:^AXJO) is faring better with its 18% uplift.

However, this could leave the Suncorp share price with extra room to outperform as the shares is the latest addition to Morgan’s balanced portfolio.

Strong results justifies model portfolio addition

“SUN’s February result beat market expectations in all divisions, with supportive economic trends pointing to improved earnings into FY22,” said the broker.

“The group is benefitting from reduced impairments on an improving economic outlook, strong positive reserve releases, an ongoing focus on growth and efficiency through automation and digitisation, and an extremely robust excess capital position supporting future capital management/ special dividends.”

Suncorp share price looking cheap

The broker also pointed out that the Suncorp share price is trading on an undemanding price-earnings (P/E) multiple of around 15 times. If Morgans prediction of a near-term capital management initiative is true, the stock could be trading on a yield of around 5%.

As an aside, the ASX big four banks are also in the broker’s balanced model portfolio, which aims to have the best mix of ASX shares with income return and capital growth potential.

Getting cleaned away

But to make way for Suncorp, the broker dropped Cleanaway Waste Management Ltd (ASX: CWY) from its model portfolio.

“CWY has been a strong performer, and we think a large part of its premium rating reflects the performance of management in optimising the business in recent years,” added Morgans.

“We’re now cautious about CWY’s short term performance (and its market rating) as key management has now changed.”

More reading

• Why ASX income investors should consider this dividend ETF
• ASX 200 up 0.95%: Afterpay rises, Westpac’s APRA update, Qantas upgraded
• Westpac (ASX:WBC) share price higher following APRA update
• 435,000 Aussies bought their first shares during the pandemic
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, National Australia Bank Limited, and Westpac Banking. 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 PPK Group Limited (ASX: PPK) share price is surging by more than 8% today following two announcements from affiliates of the company.

Both the investment company’s subsidiary, Li-S Energy Limited, and its affiliate, Strategic Alloys Pty Ltd, had good news to share this morning.  

Let’s take a closer look at what has been announced.

Li-S moving to new, multimillion-dollar manufacturing hub

Li-S has confirmed it will be moving to a new home at Deakin University when a $20 million expansion of the university’s Geelong campus is complete.

The PPK subsidiary is in the process of developing its lithium battery insulation technology.

Li-S has announced it plans to work with Deakin to leverage the new technology at its proposed ManuFutures 2 advanced manufacturing hub.

Deakin Professor Iain Martin said the campus is becoming Victoria’s epicentre of research and innovation in advanced manufacturing, materials, energy, sustainability and technology.

Yesterday the university announced it will put a $10 million Higher Education State Investment Fund from the Victorian Government towards the expansion, which will double the size of the facility.

Li-S is one of the first confirmed tenants of the new addition.

A new commercialisation strategy for Strategic Alloys

Strategic Alloys is set to have a new line of customers, as its parent company partners with Rio Tinto Limited (ASX: RIO) to develop a supply chain.

Strategic Alloys is owned by three entities – 45% of the company is owned by PPK and 45% is owned by Amaero International Ltd (ASX: 3DA). Deakin University owns the remaining 10%.

Amaero provides Strategic Alloys with the essential ingredients for its High Operating Temperature Aluminium Alloy (HOT AI), while PPK delivers the company with Boron Nitride Nano Tubes (BNNT).

BNNT’s are extremely flexible thermal conductors that are chemically stable. They are able to withstand extreme temperatures and are electrical insulators.

Strategic Alloys’ latest news is regarding Amaero’s partnership with Rio Tinto. Rio Tinto has agreed to provide alloy billets to Amaero to process into powder for 3D printing. The two companies will then work together to scale production of HOT AI domestically and internationally.

PPK Group share price snapshot

At the time of writing, the PPK share price is trading at $5.80, up 8.41% from yesterday’s closing price.

Over the past 12 months, the PPK Group share price has risen by more than 96%. However, year to date, the company’s shares have fallen by 3.2%.

Based on the current PPK share price, the company has a market capitalisation of around $476 million with approximately 89 million shares outstanding.

More reading

• Small-cap ASX minerals explorer inks JV agreement with Rio Tinto (ASX:RIO)
• Here’s why the Amaero (ASX:3DA) share price rocketed 20% on open
• Is it ok to buy ASX 200 shares at a 52-week high?
• 5 things to watch on the ASX 200 on Thursday
• Why the Rio Tinto (ASX:RIO) share price is among the worst performers today

The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In afternoon trade on Friday the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a strong gain. At the time of writing, the benchmark index is up 0.75% to 6,764.8 points.

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

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is down 4% to $18.64. This appears to have been driven by profit taking after a strong gain on Thursday following the Government’s announcement of a $1.2 billion stimulus package for the tourism industry. In addition, analysts at Citi have responded to the news by retaining their sell rating and $16.80 price target on the company’s shares.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price has fallen 3% to $9.46. Investors appear to be selling safe haven assets like gold miners on Friday and buying risk on assets such as tech shares. This follows a very positive night of trade on Wall Street, which saw the Nasdaq index rise 2.5%.

Southern Cross Media Group Ltd (ASX: SXL)

The Southern Cross Media share price has plunged 9.5% to $2.00. The media company’s shares have come under pressure today after Channel Nine advised that it will not be extending its regional affiliation with Southern Cross Media after it expires in June. Nine Entertainment Co. Holdings Ltd (ASX: NEC) has instead signed a deal with WIN.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price is down over 3% to $11.11. This decline means that the wine company’s shares have now given back almost all their gains from earlier this week. A mixed response to its plans in the Americas has been behind the volatility. Yesterday Citi retained its sell rating and $9.30 price target on the company’s shares.

More reading

• ASX 200 up 0.95%: Afterpay rises, Westpac’s APRA update, Qantas upgraded
• Why the Southern Cross Media (ASX:SXL) share price is tumbling 14%
• Can the Flight Centre (ASX:FLT) share price recover in 2021?
• Top brokers name 3 ASX shares to sell today
• Should the JobKeeper payment be replaced with discounted airfares?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. 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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ASX growth shares have had a rather tumultuous few weeks. We’ve seen something of a readjustment in this area as rising bond yields have forced investors across both the United States and here on the ASX to re-evaluate growth shares’ valuations. Luckily, that also means it’s a great time to take a second look at this formerly high-flying space.

So here are 2 ASX growth shares that might be worthy of such consideration today:

Bubs Australia Ltd (ASX: BUB)

The Bubs share price hasn’t had a great month, or a great six months, for that matter. The Bubs share price is today (at the time of writing) trading at 52 cents a share, down over 16% over the past month. It’s down an even nastier ~35% since mid-September and is more than 50% down from the all-time high we saw back in May last year.

Like it’s competitor A2 Milk Company Ltd (ASX: A2M), Bubs has been hard hit by the narrowing daigou trade to China sparked by the coronavirus pandemic. Daigou involves customers buying Bubs’ products in Australia and shipping them to China to be resold or distributed. However, in its half-year earnings report released last month, Bubs reported that the other parts of its business were performing well. Its Australian market share has tripled with Bubs’ strong product presence across supermarkets and pharmacies, and its balance sheet remains strong.

Afterpay Ltd (ASX: APT)

The Afterpay share price is having a great day today (up close to 4%). However, this buy now, pay later (BNPL) pioneer is still in one of its worst corrections in years. Afterpay shares have fallen dramatically from the all-time high of $160.05 the company set just last month. At today’s price of $115.22 (at the time of writing), the company is down around 30% from those highs.

And yet, Afterpay continues to grow at breakneck speed. In its half-year earnings report also released last month, Afterpay reported that gross sales volumes were up 106% to $9.8 billion. Big numbers there. But Afterpay’s surge in earnings before interest, tax, depreciation and amortisation (EBITDA) was even bigger at 521%. Pleasingly for the company, its North American expansion plans also seem to be booming. Afterpay reported that its customers from this region were up 127% year on year to more than 8 million. It’s also putting in rapid plans to expand into Europe and Asia.

More reading

• ASX 200 up 0.95%: Afterpay rises, Westpac’s APRA update, Qantas upgraded
• Why Afterpay, Piedmont Lithium, ResApp, & Santos are charging higher
• 5 things to watch on the ASX 200 on Friday
• ASX 200 unmoved, Flight Centre soars, Afterpay keeps falling
• Will the Afterpay (ASX:APT) share price bounce back?

Sebastian Bowen owns shares of A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended 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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As most of us would be aware, some ASX shares have a reputation for paying out relatively large dividends. Our unique system of franking is partially responsible.

When a company can get a tax deduction from a dividend, it’s hard for it to deny this to its clamouring shareholders.

That’s why the vast majority of S&P/ASX 200 Index (ASX: XJO) shares start paying dividends as soon as they can, and by as much as they can. But this is a rather unusual paradigm when you zoom out and look that the rest of the world. Especially in the United States.

All ten of the ASX 200’s top ten companies pay a dividend. And yet only five of the largest ten companies in the US S&P 500 Index (SP: .INX) do the same.

Sure, Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), Facebook Inc (NASDAQ: FB), Berkshire Hathaway Inc (NYSE: BRK.A) (NYSE: BRK.B) and Amazon.com Inc (NASDAQ: AMZN) could pay a dividend if they wanted to. Each of these companies has tens of billions of dollars on their balance sheets. But they choose not to.

That’s why an exchange-traded fund (ETF) that covers this index, such as the iShares S&P 500 ETF (ASX: IVV), offers a pretty miserly trailing yield of 1.46% today.

Looking at this yield, it’s no wonder that many ASX dividend investors don’t bother with investing in US shares.

But it doesn’t have to be this way.

A juiced-up US dividend ETF

The BetaShares S&P 500 Yield Maximiser Fund (ASX: UMAX) is an ETF that aims to solve this problem. Yes, it invests in the same S&P 500 Index as IVV does. And yet it offers investors a trailing yield of 7.2% today. More than four times that of the iShares product.

How is that possible? Well, UMAX employs what’s known as an options strategy to squeeze a little more yield from the S&P 500 than a regular index-tracking ETF.

The fund writes call options on the S&P 500 that expire around three months from when written. According to BetaShares, these options are “expected to be approximately 2% to 5% above the then-current level of the index”.

If the index performs outside these expectations that the call options assume, the fund makes additional income, which it uses to juice up the dividend distributions it can pay.

Now if that’s all over your head, I wouldn’t blame you. It’s a bit of a neat trick the fund is attempting to pull off. But it does work to increase the income you can expect from a basket of US shares.

There’s no free lunch though

However, there’s no such thing as a free lunch. BetaShares states the following on this matter:

The Fund’s strategy is expected to outperform a strategy of holding the Share Portfolio alone (i.e. without writing index call options), in falling, flat andgradually rising markets. However, the Fund’s strategy can be expected to underperform in a strongly rising market.

And the fund is being a little optimistic, even here. BetaShares’ own data shows that UMAX has returned an average of 7.28% per annum over the past five years. The pure S&P 500 Index has returned an average of 13.61% per annum over the same period.

So long story short, it seems investors are giving up a disproportionate level of capital growth for a smaller boost in income. UMAX also charges a management fee of 0.79% per annum, whereas IVV charges just 0.04%.

Still, if dividend income is a priority for you and your investing strategy, this ETF remains worthy of consideration. And it also offers the benefits of increasing the diversification of an ASX dividend portfolio by including US companies, some of which are the best in the world.

More reading

• ASX 200 up 0.95%: Afterpay rises, Westpac’s APRA update, Qantas upgraded
• 435,000 Aussies bought their first shares during the pandemic
• 5 things to watch on the ASX 200 on Friday
• ASX 200 unmoved, Flight Centre soars, Afterpay keeps falling
• 3 blue chip ASX shares with dividend yields over 5% today

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares) and Facebook. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Amazon, Berkshire Hathaway (B shares), and Facebook and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), long January 2022 $1920 calls on Amazon, short January 2022 $1940 calls on Amazon, and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia owns shares of and has recommended BetaShares S&P500 Yield Maximiser. The Motley Fool Australia has recommended Alphabet (A shares), Amazon, Berkshire Hathaway (B shares), Facebook, and iShares Trust – iShares Core S&P 500 ETF. 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 Vitalharvest Freehold Trust (ASX: VTH) share price is flat today despite an ongoing fight to take over the company.

The lacklustre performance of the Vitalharvest share price also comes despite the All Ordinaries Index (ASX: XAO) trading 0.99% higher for the day so far and after a Macquarie Group Ltd (ASX: MQG) subsidiary upped its offer to take over the company.

At the time of writing, the agribusiness’ share price is sitting at $1.095.

What’s going on with the Vitalharvest share price?

The Sydney Morning Herald (SMH) is reporting Macquarie Infrastructure and Real Assets (MIRA) and private equity firm Roc are battling it out to takeover Vitalharvest. MIRA approached Vitalharvest back in November with an offer of $1.00 per share for the trust. The Vitalharvest share price back then was 96.5 cents.

Since that time, the share price has shot up by around 13% to be 9% higher than MIRA’s initial offer. Roc then entered the fray for the company, offering $1.08 per share. Macquarie has matched that price and offered a 2.5 cent distribution per unit for rental income for the six months to December.

Despite the added incentive of the dividend equivalent, shareholders do not seem to be convinced, with many apparently selling their shares at today’s market price – 1.5 cents above the MIRA offer.

In a statement to the SMH, a MIRA spokesperson said:

MIRA’s proposal delivers compelling value to Vitalharvest unitholders of $1.105 per unit, a 41% premium to the undisturbed trading price of VTH units. Our proposal is fully funded, ready to implement, recommended by the RE and Independent Expert and has the support of both the manager and the Trust’s sole tenant.

What is Vitalharvest?

Vitalharvest is a real estate investment trust (REIT) that focuses on real agriculture property assets. It leases its property to Costa Group Holdings Ltd (ASX: CGC). Costa is a major fresh fruit and vegetable supplier with operations both domestically and overseas. The company gave its blessing to Vitalharvest to sell the trust.

Agriculture commodity prices are predicted to continue their upward swing, much like they did last year.

Vitalharvest share price snapshot

This time last year, the Vitalharvest share price had a going rate of 68 cents. At today’s price, an investor would be seeing a 61% return on investment.

Vitalharvest has a market capitalisation of around $201.7 million.

More reading

• ASX 200 unmoved, Flight Centre soars, Afterpay keeps falling

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO and 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 Betashares Climate Change Innovation ETF (ASX: ERTH) made its ASX debut yesterday, opening at $12.72. At the time of writing, ERTH shares have pushed 3.2% higher. This is, in part, thanks to a strong overnight performance in US and European markets. 

What’s so special about ERTH? 

The ASX ERTH ETF comprises a portfolio of up to 100 leading global companies. These companies derive at least 50% of their revenues from products and services that aim to tackle climate change and other environmental challenges. 

Many have pointed to tackling climate change as the next investment megatrend, including leading rare earths producer Lynas Rare Earths Ltd (ASX: LYC). The Lynas share price was one of the best performing ASX 200 shares last year, surging some ~80%. The company sees continued demand for its minerals through areas such as the accelerated demand for electric vehicles, expanding global wind and solar capacity and a growing consumer electronics market.

ERTH aims to provide its investors with exposure to this emerging megatrend where demand for environment-related goods and services is anticipated to rise strongly over the long term. 

Investors will be exposed to a broad range of clean solutions including clean/renewable energy, green transportation, water and waste improvements, decarbonisation-enabling solutions and sustainable products.

What companies does ERTH hold? 

The ASX ERTH ETF currently holds 90 companies and is heavily US concentrated (42.9%), likely due to the breadth and depth of companies available. The ETF has allocated approximately 60% of its funds into three sectors: capital goods, semiconductors and automobiles.

Its top ten holdings that make up approximately 40.3% of the fund include: 

• Trane Technologies PLC (NYSE: TT)
• Infineon Technologies AG (ETR: IFX)
• Zoom Video Communications Inc (NASDAQ: ZM)
• Cie De Saint-Gobain SA 
• DocuSign Inc (NASDAQ: DOCU)
• Tesla Inc (NASDAQ: TSLA)
• East Japan Railway Co 
• Nio Inc (NYSE: NIO)
• Vestas Wind Systems 
• Plug Power Inc

ERTH dodges recent market selloff

The recent tech and growth related selloff may have had a significant impact on the ASX ERTH ETF share price had it listed earlier. 

Renewable-related ETFs including the Global X Lithium & Battery Tech ETF (NYSEARCA: LIT), iShares PHLX Semiconductor ETF (NASDAQ: SOX) and Invesco Solar ETF (NYSEARCA: TAN) all slumped around 5%-20% in mid-February before staging a rebound in early-March. 

The ERTH ETF has been able to capture the recent rebound. At the time of writing, ERTH shares are up 3.13% to $13.19.

More reading

• Is the “rollercoaster over” for Lynas Rare Earths (ASX:LYC)?
• International Women’s Day: Which ASX companies are fighting gender inequality?
• Morgan Stanley reveals some investment trends to watch in 2021
• Shocking photo shows how quickly electric cars could take over
• Lynas (ASX:LYC) share price jumps 6% to new 52-week high

Motley Fool contributor Kerry Sun owns shares of Lynas 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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The Coca-Cola Amatil Ltd (ASX: CCL) share price is pushing higher on Friday after releasing an update on its takeover approach.

At the time of writing, the beverage company’s shares are up almost 0.5% to $13.47.

What did Coca-Cola Amatil announce?

This afternoon Coca-Cola Amatil revealed that the Supreme Court of New South Wales has approved the convening of a scheme meeting.

At this scheme meeting, independent shareholders will be able to consider and vote on the company’s proposed acquisition by Coca-Cola European Partners (CCEP).

This follows the receipt of a $13.50 cash per share offer from CCEP in February, which was increased from a previous offer of $12.75 per share in November.

According to today’s release, shareholders will now have an opportunity to vote on the proposal next month. The company has announced that its scheme meeting will be held at 10am on 16 April.

What now?

The Supreme Court has also approved the distribution of an explanatory statement providing information about the scheme to independent shareholders. This will include a scheme booklet and also a copy of the independent expert’s report.

The Coca-Cola Amatil Independent Directors’ and Group Managing Director’s recommendation is that shareholders should vote in favour of the scheme.

They commented: “In the absence of a Superior Proposal and subject to the Independent Expert continuing to conclude that the Scheme is fair and reasonable and in the best interests of Independent Shareholders: the Amatil Related Party Committee continues to unanimously recommend that Independent Shareholders vote in favour of the Scheme; and the Amatil Group Managing Director, Ms Alison Watkins, also continues to recommend that Independent Shareholders vote in favour of the Scheme.”

Each Coca-Cola Amatil Related Party Committee Member and Ms Watkins intend to vote the shares they own or control in favour of the scheme.

More reading

• International Women’s Day: The female CEOs of the ASX
• Coca-Cola (ASX:CCL) pays out dividend, but what’s the catch?
• Why Atomos, Bendigo and Adelaide Bank, Coca-Cola Amatil, & Nearmap are racing higher
• Why is the Coca-Cola Amatil (ASX:CCL) share price gaining today?

Motley Fool contributor James Mickleboro 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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