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The Serko Ltd (ASX: SKO) share price will be on watch on Thursday after the release of an update this morning.

What did Serko announce?

This morning the online travel booking and expense management software provider released an update on current trading conditions.

According to the release, the company has been experiencing a gradual improvement in booking volumes following the easing of border restrictions in Australia over the last few weeks.

Serko’s CEO, Darrin Grafton, commented: “Transaction volumes increased to 44% of prior year volumes for the month of November (up from 35% of prior year volumes for the month of October). The past week has seen some daily transaction rates around 50% of prior year volumes.”

“Australian domestic travel increased to 33% of prior year volumes for the month of November (up from 26% of prior year volumes for the month of October),” he added.

Things have been even better across in New Zealand, where volumes are close to pre-COVID levels.

The CEO advised: “New Zealand domestic travel increased to 85% of prior year volumes for the month of November (up from 76% of prior year volumes for the month of October).”

What about the future?

While management acknowledges that future trading patterns remain unknown because of the pandemic, it appears optimistic on the future as travel restrictions ease.

In addition to this, the new agreement with travel booking giant Booking.com is expected to give its performance a boost.

Mr Grafton said: “During our recent earnings announcement we also advised that it was expected that new customers wishing to set-up a business account on the Booking.com website would be directed to the new Booking.com for Business platform powered by Zeno in select markets imminently.”

“We are pleased to confirm that new customers in select global (predominantly English-speaking) markets, are now being directed to the new Booking.com for Business platform powered by Zeno. The rate of new organic sign-ups remain uncertain and will be dependent on local travel restrictions and trends in each relevant market,” he explained.

More reading

• Leading brokers name 3 ASX shares to buy today
• Why a2 Milk, ALS, Centuria Industrial, & Serko shares are dropping lower
• Serko (ASX:SKO) share price drops lower after half year results
• Wilson Asset Management thinks these 2 small cap ASX shares are a buy

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 Serko Ltd. The Motley Fool Australia has recommended Serko Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Serko (ASX:SKO) share price on watch after trading update appeared first on Motley Fool Australia.

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

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

What happened

Shares of Pfizer Inc (NYSE: PFE) and BioNTech (NASDAQ: BNTX) climbed on Wednesday after the pharmaceutical titan and biotech announced a major development in the battle against COVID-19. As of 2:40 p.m. EST, Pfizer’s and BioNTech’s stocks were up 3% and 5.6%, respectively.

So what

A phase 3 trial showed Pfizer’s and BioNTech’s vaccine candidate BNT162b2 to be as much as 95% effective at preventing COVID-19. And importantly, BNT162b2 was generally well tolerated with no serious safety concerns observed among the study’s participants to date. This promising data prompted the U.K. government to grant emergency authorization for the COVID-19 vaccine. 

“Today’s Emergency Use Authorization in the U.K. marks a historic moment in the fight against COVID-19,” Pfizer CEO Albert Bourla said in a press release. “This authorization is a goal we have been working toward since we first declared that science will win.”

Pfizer and BioNTech have agreed to supply the U.K. with 40 million doses of the vaccine. The healthcare companies will begin delivering the vaccine immediately, with the first doses expected to arrive in the coming days. 

Now what 

The U.K.’s decision is a major step forward in the war against the dangerous disease. COVID-19 case counts remain at alarmingly high levels in many areas of the world. A safe and effective vaccine could help to slow the spread of the disease and eventually help to bring about an end to the pandemic.

Pfizer and BioNTech stand ready to deliver their vaccine to more countries in the weeks ahead. They have requested emergency authorization from health regulators in the U.S. and Europe. The U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA) are expected to announce their decisions later this month.

“As we anticipate further authorizations and approvals, we are focused on moving with the same level of urgency to safely supply a high-quality vaccine around the world,” Bourla said. “With thousands of people becoming infected, every day matters in the collective race to end this devastating pandemic.”

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

More reading

• Which ASX travel shares performed the best in November? 
• 3 key advantages Moderna holds over Pfizer and AstraZeneca
• Why AstraZeneca’s potential vaccine is more exciting than you think
• Why Moderna Is Less Risky Than You Think
• With the Moderna (NASDAQ:MRNA) share price blasting up, have the forward-looking markets got it right?

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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Wes Maas came home to Dubbo after 5 years in Sydney playing reserve-grade rugby league.

He even got to play 2 top-level NRL games for the South Sydney Rabbitohs, but a busted shoulder forced his retirement at the age of 22.

His brothers had attained plumbing and building qualifications. He didn’t have anything when he returned to the central west of NSW.

Now, 18 years later, Maas will become one of the wealthiest self-made Australians when his company MAAS Group Holdings Limited (ASX: MGH) lists on the ASX on Friday.

He will be worth $347 million, according to the initial public offer (IPO) price of $2 per share.

Maas’ materials and equipment services provider business will have a market capitalisation of $529.9 million after raising $82 million through the IPO.

Not bad for a venture that started with one bobcat purchased with all his meagre savings after returning from Sydney.

Unusually for a professional footballer, he had a day job while playing and training in the big city.

“I always worked all the way through, which was not the norm,” Maas told The Motley Fool.

“I worked at a company named Shorco… which was later gobbled up by Coates Hire.”

The shoulder injury meant that he was pushed to the white-collar side of the business, learning about equipment hire contracts and return on capital.

In Dubbo, he hired out that first bobcat to building projects. A tip truck came next, then the business expanded out from there.

Now the MAAS Group runs 4 business segments collectively covering the entire nation, managing 760 pieces of equipment.

A publicly listed founder-led business

Maas told The Motley Fool that new retail investors could take comfort in that many of the people who run the company are also shareholders. 

“Founder-led ASX-listed business, which I would say would be in the top 300 or just outside that, would probably only be a few,” he said.

“We have a lot of skin in the game. Between myself, other founders and the executive staff, we’ll be holding about 75% of the stocks. We’re very invested and we really care about the business.”

Maas said that the moat for the business is that it does most of its work in-house rather than subcontract it out.

“Our model is quite different to others. We do just about everything ourselves,” he said.

“Across all our businesses, we carry at least 80% of the projects in-house – so we don’t have any margin slippage.”

The company is well-diversified across its 4 business units – construction materials, civil construction and hire, real estate, and underground equipment.

“Each segment contributes more than 20% of EBITDA, so we’ve got a fairly even spread,” said Maas.

“They’ve all (each) got a big addressable market.”

Maas Group saw a 16% jump in pro forma revenue from financial year 2019 to 2020. 

The business is already profitable, recording a net profit the last 3 years. The 2020 financial year saw $32.4 million of net profit after tax.

According to the prospectus, Maas Group expects to pay out a dividend yield of 2.5% from the very start.

The IPO was due to take place earlier this year but was withdrawn after the COVID-19 market crash in March.

More reading

• The Sensen (ASX:SNS) share price plummets 10% after AGM
• ASX stock of the day: Sensen Networks (ASX:SNS) rockets 27%

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Fortunately for growth investors, the Australian share market is home to a large number of companies with the potential to grow strongly over the coming years.

Two growth shares that have been tipped for big things are listed below. Here’s why they have been named as buys:

a2 Milk Company Ltd (ASX: A2M)

It has been a difficult few months for a2 Milk Company. Due to significant weakness in the daigou channel and pantry stocking at the height of the pandemic, the company’s sales have deteriorated materially in the first half of FY 2021. Management recently warned that first half revenue is expected to be in the range of NZ$725 million to NZ$775 million. This will be a 3.9% to 10.1% decline over the prior corresponding period.

While this is disappointing, one broker that believes investors should be looking beyond this short term headwind and focusing on its positive long term outlook is Morgans. It recently put an add rating and $17.28 price target on a2 Milk shares. The broker believes recent weakness in the a2 Milk share price is a buying opportunity.

Nearmap Ltd (ASX: NEA)

Nearmap is a leading aerial imagery technology and location data company. Its platform provides businesses with instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools.

Management believes the company is well-placed for growth thanks to its recent capital raising, new growth initiatives, geographic expansion, and the launch of its latest AI product. It is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

Analysts at Morgan Stanley are positive on the company’s prospects in the future. The broker recently retained its overweight rating and $3.10 price target on its shares. This compares to the current Nearmap share price of $2.20.

More reading

• Why healthcare, tech and consumer staples shares underperformed the ASX 200 in November
• 10 fantastic ASX shares to buy in December
• 2 exciting mid cap ASX shares to buy
• 2 fantastic ASX growth shares to buy
• Here are the 10 most shorted shares on the ASX

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 Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking for some generous dividends to boost your income next year, then you might want to take a look at the ASX shares listed below.

Here’s why these have been named as dividend shares to buy:

Accent Group Ltd (ASX: AX1)

Accent Group is one of Australia’s leading footwear-focused retailers. It owns a wide range of retail store brands such as HYPE DC, Platypus, and The Athlete’s Foot. It also has a couple of new brands, Australian Stylerunner and Pivot, which have just started to open stores.

Although many retailers have struggled this year because of the pandemic, Accent certainly wasn’t one of them. Thanks to its strong market position, in-demand brands, and its growing online business, in FY 2020 the company posted a 7.5% increase in net profit after tax to $58 million. It also recently revealed like for like sales growth of 15.7% for the first 20 weeks of FY 2021 excluding its Auckland and Victorian stores.

Analysts at Morgan Stanley have an overweight rating on its shares and are forecasting a fully franked 9.4 cents per share dividend in FY 2021. Based on the current Accent share price, this represents a 4.3% dividend yield.

BHP Group Ltd (ASX: BHP)

BHP is one of the globe’s biggest miners and the owner of a collection of world class, low cost assets. Pleasingly, thanks to favourable commodity prices, these operations are generating significant free cash flows at present. And given the company’s track record of returning excess free cash flow to shareholders, this bodes well for dividends in FY 2021.

Late last month analysts at Morgan Stanley retained their overweight rating on its shares. They also revealed that they are forecasting a fully franked ~204 cents per share dividend in FY 2021. Based on the latest BHP share price, this equates to a 5.2% dividend yield.

More reading

• Why Rio Tinto (ASX:RIO) and 2 other ASX iron ore mining shares sit at record highs
• Fund managers are snapping up these ASX stocks at a record pace
• 2 growing ASX dividend shares to buy this month
• How the biggest companies are the worst investments
• ASX 200 Weekly Wrap: ASX 200 on track for a top month

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Wednesday the S&P/ASX 200 Index (ASX: XJO) had a volatile day with plenty of ups and downs. The benchmark index ultimately ended the day 1.7 points higher at 6,590.2 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to rise.

The Australian share market looks set to rise on Thursday despite a weak night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 15 points or 0.25% higher this morning. In late trade in the United States, the Dow Jones is down 0.15%, the S&P 500 is down 0.1%, and the Nasdaq has fallen 0.35%.

UK approves Pfizer COVID vaccine.

Overnight the UK became the first country to authorise the Pfizer COVID-19 vaccine for emergency use. According to CNBC, the vaccine will now be rolled out in the country as early as next week. The UK is planning to start with elderly people in care homes and medical workers. Emergency use approval in the United States is under review by the Food and Drug Administration. A decision on that is expected next week.

Gold price rises again.

Gold miners including Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Ltd (ASX: NCM) could push higher today after another rise in the gold price. According to CNBC, the spot gold price is up 0.7% to US$1,831.60 an ounce. This was driven by hopes that a US COVID stimulus package will soon be approved.

Oil prices stormed higher.

Energy producers Oil Search Ltd (ASX: OSH) and Santos Ltd (ASX: STO) could have a solid day after oil prices rebounded. According to Bloomberg, the WTI crude oil price is up 1.7% to US$45.32 a barrel and the Brent crude oil price has climbed 1.9% to US$48.30 a barrel. Optimism that OPEC will make a deal on production cuts has lifted oil prices.

Worley rated as a buy.

According to a note out of Goldman Sachs, the Worley Ltd (ASX: WOR) share price could be going a lot higher from here. This morning the broker reiterated its conviction buy rating and $15.70 price target on the company’s shares. It believes the company is well positioned to capitalise on the energy transition. Goldman’s price target implies potential upside of almost 26% over the next 12 months excluding dividends.

More reading

• ASX 200 flat on Wednesday
• Why this fund manager believes Qantas (ASX:QAN) could emerge “larger and more valuable”
• Why the Oz Minerals (ASX:OZL) share price, up 61% this year, could run higher
• Santos (ASX:STO) share price rated top buy in sector by Citigroup
• Which ASX 200 sectors performed the best in November? 

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In this article are two defensive ASX dividend shares that pay reliable income.

The Reserve Bank of Australia (RBA) decided this week to maintain the official interest at just 0.10%.

Here are two ASX dividend shares that pay reliable income to shareholders:

Rural Funds Group (ASX: RFF)

Rural Funds is an agricultural real estate investment trust (REIT).

It owns a diversified portfolio of farming assets. The ASX dividend share has cattle farms, vineyards, almond farms, macadamia farms and cropping properties (sugar and cotton). It currently has 61 properties.

The properties are spread across different states and climactic conditions to add additional diversification to its real estate portfolio.

Most of Rural Funds’ tenants are large and listed entities. Some of its tenants include Treasury Wine Estates Ltd (ASX: TWE), Select Harvests Limited (ASX: SHV), Olam, JBS and Australian Agricultural Company Ltd (ASX: AAC).

Most of these tenants are on long-term leases, particularly the almond farms. Rural Farms has a weighted average lease expiry (WALE) of around 11 years at 30 June 2020. It had a gearing ratio of 29.7% at the end of FY20. 

The ASX dividend share aims to increase its distribution by at least 4% per annum. It has achieved this each year over the past several years since it listed.

Rural Funds has rental increases built into its rental agreements. One large group of rental agreements has a fixed 2.5% increase each year. Its other group of rental agreements have increases linked to CPI inflation. Some of those contracts have market reviews with them.

Rural Funds has been investing in productivity improvements at its farms, particularly the cattle properties, to boost the rental income and value of the farm.

For FY21 the ASX dividend share has provided distribution guidance of 11.28 cents per unit, this equates to a forward distribution yield of 4.4%. The FY21 adjusted funds from operations (AFFO) per unit, which essentially measures the cash net rental profit, is expected to come in at 11.7 cents.

Magellan Infrastructure Fund (ASX: MICH)

This is an exchange-traded fund (ETF) which gives investors exposure to infrastructure businesses around the world.

To be considered to make it into the portfolio, the underlying business must provide a service that is essential to the efficient functioning of a community, while generating cash flows that are not subject to external risks such as commodity prices.

On top of that, the ASX dividend share looks at other risks like gearing levels, sovereign risk, regulatory risk and reporting transparency. The businesses that remain should have reliable demand and generate predictable cash flows according to the infrastructure investor.

At the end of October 2020 its biggest holdings were (in alphabetical order): American Water Works, Atmos Energy Corporation, Crown Castle International Enbridge, Eversource Energy, Red Electrica Corporacion, Sempra Energy, Transurban Group (ASX: TCL), Vopak and Xcel Energy.

The COVID-19 decline has caused the net return over the past four years to drop to 5.5% per annum, though that it is still 4.2% higher than the benchmark, being the S&P Global Infrastructure Net Total Return Index. Whilst those figures include the fees, it must be stated that the annual management fee is 1.05% per annum.

Around 42% of this fund is invested in USA assets, with another 22% in Europe and 17% in the Asia Pacific region. The rest of the assets, apart from a 10% cash position, is invested in the UK, Latin America and Canada.

Based on the current Magellan Infrastructure Fund share price, it offers a trailing distribution yield of 4.1%.

More reading

• What big brokers think of the Treasury Wine (ASX:TWE) share price now
• Leading brokers name 3 ASX shares to sell today
• Why healthcare, tech and consumer staples shares underperformed the ASX 200 in November
• ASX 200 drops on Monday
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Treasury Wine Estates Limited. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool Australia has recommended Magellan Infrastructure Fund. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Sensen Networks Ltd (ASX: SNS) has seen yesterday’s share price gains sliced by more than 10% today after the company held its annual general meeting (AGM).

The Sensen share price rocketed up 27% yesterday on news that the artificial intelligence (AI) analytics company had acquired Snap Network Surveillance. Snap is an AI-powered multi-camera tracking software company based in Adelaide.

However, the Sensen share price is currently trading at 12.5 cents, paring back some of yesterday’s gains.

Highlights from today’s AGM

Sensen reported that internal initiatives made as a result of COVID-19 have led to a record year of financial metrics for the company.

The company says that as of November, contracted total revenue has grown to around $6 million for FY21, up from previous guidance of $5.6 million. Annual recurring revenue (ARR) makes up $3.3 million or 55% of its total revenue estimate.

Sensen says that it has 21 customers on its books generating this ARR, which has grown from 16 in FY20, and 8 in FY19. The average client contributes $160,000 per year to its ARR figures.

With two more quarters to go, the company is optimistic that it is well placed for a record year in both total revenue and ARR.

Growth despite COVID-19

Sensen’s global workforce has grown to 100 software engineers in FY21, despite market difficulties caused by the pandemic. 

The company attributed the growth mainly to sales of its “Gemineye” smartphone-based smart city monitoring software, a disruptive price-based SaaS solution.

Growth for the year was also underpinned by high profile customer wins such as the City of Las Vegas, and orders from casino operators, despite slowdowns in that sector.

Acquisition of Snap

Just yesterday, Sensen announced its acquisition of Snap Network Surveillance.

Sensen notes that Snap, an AI-powered surveillance camera manufacturer, has been making inroads into the casino market, especially in the United States. This is an area Sensen is targeting for growth. The company told investors that it planned to integrate Snap’s technology into its SenDISA platform. 

The takeover will involve Sensen acquiring all intellectual property including patents, trademarks and know-how from Snap, for a price of $1 million. 

That news appears to have been the driving force behind yesterday’s 27% rise in the Sensen share price.

How has the Sensen share price performed in 2020

The Sensen share price has risen by around 20% in 2020, including today’s movements. The company currently commands a market value of $63 million.

Sensen is an AI (artificial intelligence) company focusing on video-IoT (Internet of Things) analytics, and AI-driven software solutions.

More specifically, the company calls itself a “world-leading, data-fusion enterprise” that applies “ingenuity to develop AI-powered products and solutions that address the needs of our increasingly urbanising society”.

More reading

• ASX stock of the day: Sensen Networks (ASX:SNS) rockets 27%

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Mesoblast limited (ASX: MSB) share price was one of the best performers on the ASX 200 in November.

The biotechnology company’s shares raced a massive 33% higher over the month.

Why did the Mesoblast share price zoom higher in November?

The catalyst for the strong gain by the Mesoblast share price in November was the announcement of a major deal with pharma giant Novartis.

That deal has seen Novartis sign an exclusive worldwide license and collaboration agreement for the development, manufacture, and commercialisation of Mesoblast’s mesenchymal stromal cell (MSC) product remestemcel-L for the treatment of COVID-19 Acute Respiratory Distress Syndrome (ARDS).

According to the release, Novartis will pay US$50 million upfront and then upwards of US$1.25 billion in milestone payments.

This news went down very well with analysts at Bell Potter. They described it as a “fantastic deal” for Mesoblast. Furthermore, they like that it provides greater certainty in relation to the manufacturing and commercialisation of the product for COVID-19 ARDS.

Can the Mesoblast share price go higher?

This month, Bell Potter has looked closer at the deal and adjusted its price target accordingly.

The broker has a (speculative) buy rating and $7.40 price target on the company’s shares. This is up from $7.00 previously and compares to its last close price of $4.43.

According to the note, Bell Potter has lifted its FY 2021 earnings forecasts to reflect the deal.

It commented: “Over the next 12 months we expect MSB to receive US$32.5m in milestones from partner Grunenthal for back pain product and US$105m from partner NVS for successful results from Phase 3 trial and approval for COVID-19 ARDS for remestemcel-L. In addition, US$35m is available to MSB on its existing debt facilities, which provides a runway to at least year end FY22.”

What else did it say?

There are also a number of catalysts on the horizon which it feels could take its shares higher.

“Phase 3 COVID-19 ARDS trial has surpassed recruitment of 180 patients required for third and final interim analysis, which we expect to be completed by mid-Dec’20. The trial is now expected to complete recruitment in early 1QCY21, with results later in 1QCY21. Results from both Phase 3 back pain and heart failure trials are expected in Dec’20, which we expect will be key catalysts for the stock, given these indications account for the majority of our valuation for MSB,” it concluded.

More reading

• ASX 200 flat on Wednesday
• Why Laybuy, Mesoblast, Sandfire, & Telix shares are charging higher
• ASX 200 down 0.2%: Zip’s November update, Mesoblast jumps, Westpac’s asset sale
• Mesoblast (ASX:MSB) share price jumps 19% on FDA update
• Flight Centre and Mesoblast were among the most traded shares on the ASX last week

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) was almost flat today, rising slightly to 6,590 points.

Here are some of the highlights from the ASX:

Westpac Banking Corp (ASX: WBC)

Westpac revealed today that it is going to sell Westpac General Insurance Limited and Westpac General Insurance Services Limited to Allianz and enter into an exclusive 20-year agreement for the distribution of general insurance products to Westpac’s customers.

The sale price of $725 million represents a multiple of 1.3x FY20 gross written premium and is estimated to result in a small post-tax gain on sale in FY21. The sale of the general insurance business adds around 12 basis points to Westpac’s common equity tier 1 (CET1) capital ratio.

The transaction also includes contingent payments subject to integration milestones and business performance over the next five years, as well as ongoing payments in accordance with the distribution agreement.

The new distribution arrangement expands the ASX 200 bank’s existing partnership with Allianz, which has seen Westpac distribute a range of Allianz’s products to customers including auto, travel, boat and business insurance since 2015.

Westpac group CEO, Peter King, said: “This transaction is another step in simplifying our business while continuing to help customers with their general insurance needs.

“General insurance products are important for many Australians and we are pleased to be entering a long-term partnership with a global insurance expert to continue to help customers protect the things they value.”

Westpac will retain responsibility for certain pre-completion matters and provide protection to Allianz via a combination of provisions, warranties and indemnities.

Completion of the transaction is subject to various regulatory approvals and is expected to occur in the second half of 2021.

The Westpac share price finished up by 0.2% in reaction to this news.

Mesoblast Limited (ASX: MSB)

The Mesoblast share price went up around 7% today after making an announcement saying that the US Food and Drug Administration (FDA) has granted ‘fast track’ designation for remestemcel-L in the treatment of acute respiratory distress syndrome (ARDS) due to COVID-19 infection.

The ASX 200 share said that fast track designation by the FDA is intended to facilitate development and expediate the review of therapies to treat serious and life-threatening conditions with no or limited treatment options so that an approved product can reach the market quickly. Under the fast track designation, a biological license application (BLA) for remestemcel-L is eligible for both rolling submission and priority review.

Downer EDI Limited (ASX: DOW)

Only a couple of weeks ago Downer announced it was selling its blasting services business for $62 million. Today, the company announced that it was going to divest 70% of its laundries business for $155 million.

The proposed buyer of the majority shareholding is Australian private equity outfit, Adamantem Capital.

Grant Fenn, the CEO of Downer, said that this deal represented a significant step in Downer’s urban services strategy:

“The sale of 70% of laundries achieves the objective of removing one of the most capital-intensive businesses from the Downer balance sheet. Laundries continues to perform well as it recovers from the COVID-19 lockdowns in New Zealand and Victoria and by retaining a 30% interest we will participate in this ongoing recovery.

“We look forward to working closely with Adamantem and its management team providing market-leading services for our customers and employment opportunities for our people.”

More reading

• Why this fund manager believes Qantas (ASX:QAN) could emerge “larger and more valuable”
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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