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The Sayona Mining Ltd (ASX: SYA) share price is pushing higher on Monday.

In morning trade, the lithium developer’s shares are up 3.5% to 22.25 cents.

This means the Sayona Mining share price is now up almost 70% over the last 12 months.

Why is the Sayona Mining share price pushing higher?

Investors have been bidding the Sayona Mining share price higher this morning after the company provided an update on the North American Lithium (NAL) project in Québec, Canada. This operation is co-owned with fellow lithium developer Piedmont Lithium Inc (ASX: PLL), with Sayona Mining holding a majority 75% interest.

According to the release, the company has been awarded the final permit for NAL’s restart ahead of the planned recommencement of production in the first quarter of 2023.

Management believes this has effectively de‐risked its NAL operation and follows an extensive process by Sayona Québec.

And when Sayona Mining says extensive, it means extensive! The latest regulatory approval is one of more than 130 permits that were required to resume mining operations. These were required to ensure the successful restart of NAL’s lithium mine and concentrator in compliance with all necessary environmental regulations and obligations.

NAL to help satisfy lithium demand

Sayona Québec’s CEO, Guy Laliberté, was pleased with the news. He commented:

Since acquiring the NAL complex in August 2021 in conjunction with Piedmont Lithium (SYA 75%; Piedmont 25%), our team has been working hard to quickly restart operations to establish ourselves as a leader in lithium production, while maintaining a small environmental footprint and exemplary community engagement. Global demand for lithium is increasing weekly and it is essential that NAL go into production to help satisfy this demand.

This sentiment was echoed by Sayona Mining’s managing director, Brett Lynch. He said:

Securing all the necessary permits for NAL’s restart is another important step in the de‐risking process, and I would like to congratulate our team in Québec for this new milestone. With the planned expansions of our resource base both at NAL and at our northern lithium hub, Sayona is well placed to become the leading lithium producer in North America, facilitating the EV and battery revolution in North America.

The post Sayona Mining share price higher on North American Lithium news appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares
• Why are ASX 200 lithium shares taking a lashing today?
• The Sayona Mining share price went backwards in November. What now?
• ASX index beaters: 5 shares that have supercharged portfolios in 2022
• Here are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The St Barbara Ltd (ASX: SBM) share price won’t be going anywhere on Monday.

That’s because this morning the struggling gold miner requested a trading halt.

Why is the St Barbara share price halted?

The St Barbara share price was placed in a trading halt this morning after the company announced plans to merge with Genesis Minerals Ltd (ASX: GMD).

According to the release, the two gold miners plan to merge their Leonora District operations in Western Australia to form a new gold company, Hoover House.

The release notes that the merger will result in the following:

• 7Moz Mineral Resources
• 2Moz Ore Reserves
• Fully funded “capital-light” base case production target +300koz per annum (almost double St Barbara’s Leonara production target)

After a year of struggles for the St Barbara share price, as you can see below, investors will no doubt be hoping this is the catalyst to getting its shares heading higher again.

What else?

As you may have noticed above, the merger will be focused on St Barbara’s Leonora District assets.

The remainder of its assets will be demerged to form a new junior gold company, Phoenician Metals, which is then expected to be listed on the ASX.

Phoenician Metals will be focused on realising the long-term value of a portfolio including the Atlantic (Canada) and Simberi (PNG) operations, which have 6.2Moz mineral resources and 3.7Moz ore reserves. It was also have a portfolio of St Barbara royalties, $34 million in listed ASX investments, and $85 million cash.

St Barbara shareholders will receive an in-specie distribution of shares in Phoenician Metals and Hoover House will retain a 20% shareholding as a supportive cornerstone investor.

Why merge?

St Barbara’s chair, Tim Netscher, believes the merger will deliver significant value for shareholders. He said:

I am confident that this unique transaction will deliver significant value for all shareholders. The merger with our Leonora neighbour, Genesis, to create Hoover House, will accelerate our Leonora Province Plan. Shareholders will reap the benefits of more production at lower cost and lower risk from this prolific mining district.

A significant component of the value delivered by the creation of Hoover House is the unique synergies delivered by the resultant combination of assets, such as the ability to sensibly stage the development of the various orebodies and to match one party’s ore to the other party’s mill capacity.

Netscher also believes that the demerger of non-Leonora assets to form Phoenician Metals will realise value for shareholders. He added:

In parallel, select assets including Atlantic and Simberi will be de-merged to create Phoenician Metals. This will provide an opportunity for shareholders to realise the long-term value of this well-endowed portfolio in a dedicated vehicle with a high-quality management team. Phoenician Metals will attract stronger investor attention and valuation in a stand-alone entity, while allowing Hoover House to focus 100% on the Leonora District.

The post St Barbara share price halted amid major gold merger plans with Genesis Minerals appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• 3 ASX gold shares rocketing higher on Thursday
• Which ASX mining shares have had their dividend yields slashed the most in 2022?
• Why Beach, Block, Magellan, and St Barbara shares are dropping

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Quality S&P/ASX 200 Index (ASX: XJO) dividend shares will likely remain high on investor wish lists in 2023.

And that’s especially true for dividend stocks paying fully franked dividends.

With inflation looking to remain well above the RBA’s target range next year and governor Philip Lowe predicting more interest rate rises on the horizon, ASX 200 dividend shares should continue to offer investors reliable income streams.

According to Plato Investment Management’s managing director Don Hamson, “I think the current environment is quite similar to 1994 when global interest rates went up, inflation spiked, and there was negative returns on bonds and equity, yet dividends kept rising.”

ASX 200 shares to deliver a 6.0% gross dividend yield

Plato forecasts that ASX 200 shares will deliver a gross yield of 6.0% in 2023.

“Our modelling is projecting that at an index level in 2023, the ASX 200 will deliver a cash yield of 4.4%, and 6.0% when including franking credits,” Hamson said.

According to Hamson:

Despite much being said about the impact of rate rises on cash-backed asset classes like term deposits and bonds, investors who rely on them continue to lose money in real terms, with inflation rising faster than interest rates.

The Australian stock market is also one of a select few that pays imputation, or franking, credits, reducing investor tax burdens. And Hamson advises seeking out stocks offering 100% franked payouts.

“I think it goes without saying that favouring companies that pay fully franked dividends, where possible, in 2023 is a no-brainer,” he said.

Three specific ASX 200 dividend shares that Plato believes will be “strong dividend payers” in 2023 are:

• Macquarie Group Ltd (ASX: MQG), 3.8% trailing yield
• Woodside Energy Group Ltd (ASX: WDS), 9.0% trailing yield
• BHP Group Ltd (ASX: BHP), 9.8% trailing yield

A word of caution

Hamson adds that investors should be aware of dividend traps in the year ahead.

Remember, the yields you see (and those quoted above for the three ASX 200 dividend shares) tend to be trailing yields. That means they’re based on current share prices and the dividends paid out over the past 12 months. There are no guarantees those payments will be maintained in 2023.

According to Hamson:

We think many companies in the resources and financials sectors are likely to continue to be strong and sustainable dividend payers into 2023. However, it’s imperative investors avoid dividend traps – and there’ll be many to emerge over the coming year.

With that word of caution noted, Hamson added, “We believe investors must move to where the dividends are flowing.”

How have these three ASX 200 dividend shares been performing?

Atop their dividend payouts, here’s how these ASX 200 shares have been performing: the BHP share price has gained 16% over the past 12 months; Woodside shares have gained 53%; and the Macquarie share price has gone the other direction, down 17%.

You can see their performance in the charts below:

The post 3 ‘strong’ ASX 200 dividend shares for 2023 revealed: expert appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Could the VAS ETF outperform the BHP share price in 2023?
• Why did ASX 200 iron ore shares like BHP have such a cracking Friday
• The difference between uncertainty and risk’: 5 ASX shares this fundie is backing for 2023
• Forecast for ASX 200 iron ore shares in 2023: bull vs bear

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group. 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 Westpac Banking Corp (ASX: WBC) share price is in the red this morning amid news the bank is no longer pursuing Tyro Payments Ltd (ASX: TYR).

The bank said submitting an acquisition offer for the ASX fintech isn’t in its shareholders’ best interests for the time being.

Right now, the Westpac share price is 0.3% lower at $23.37.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.7% at the time of writing while the bank’s home sector, the S&P/ASX 200 Financials Index (ASX: XFJ), has slipped 0.34%.

Let’s take a closer look at today’s news from the ASX 200 bank share.

Westpac’s Tyro takeover talks binned

The Westpac share price is slipping alongside the broader market on Monday amid news the bank won’t be submitting a bid for ASX payments provider Tyro Payments.

Indeed, both parties previously on the hunt for the fintech have been cut from the race today.

Tyro confirmed neither Westpac nor competing suitor Potentia Capital Management was willing to post a bid its board considered fair value. Thus, the fintech has ceased discussions with both parties.

In October, the big four bank confirmed it was in takeover talks with the smaller financial stock. In a release to the ASX today, Westpac said:

Westpac has now undertaken due diligence on Tyro and has decided that submitting an offer is not in the best interests of Westpac shareholders at this time.

The bank initially said acquiring the fintech would strengthen its small business proposition, allowing it to better support customers and grow merchant acquisition. That would particularly be the case in the hospitality and healthcare sectors.

Tyro rejected a $1.27 per share bid put forward by a Potentia-led consortium in September. Today, it revealed the consortium put forward another rejected bid, this time for $1.60 per share – representing an enterprise value of around $875 million.

On both occasions, the company said the offer was materially below the company’s fundamental value and highly conditional.

Tyro today said it’s still open to takeover talks as long as any offer “represents compelling value”.

Westpac share price snapshot

The Westpac share price has outperformed in 2022. The stock is currently 8% higher than it was at the start of the year. It has also lifted 13% since this time last year.

Comparatively, the ASX 200 has slumped 5% year to date and 2% over the last 12 months.

The post Westpac share price slumps as Tyro takeover scrapped appeared first on The Motley Fool Australia.

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More reading

• Tyro share price crashes 22% after ending takeover talks with Westpac and Potentia
• Bought $1,000 of Westpac shares 10 years ago? Here’s how much dividend income you’ve received
• Could the VAS ETF outperform the BHP share price in 2023?
• Earn passive income with these strong ASX 200 dividend shares: brokers
• After sliding into the red last month, what’s the outlook for the Westpac share price in December?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tyro Payments. The Motley Fool Australia has recommended Tyro Payments and Westpac Banking. 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 global economy is made up of many different economic cogs. Things may be starting to change, which could affect some ASX shares more than others.

According to thoughts from Blackrock, this new period is “the most fraught global environment since World War Two”. Blackrock said:

We see geopolitical cooperation and globalisation evolving into a fragmented world with competing blocs. That comes at the cost of economic efficiency. Sourcing more locally may be costlier for firms, and we could also see fresh mismatches in supply and demand as resources are reallocated.

BlueScope Steel Limited (ASX: BSL)

BlueScope is one of the largest steel businesses in Australia. It also has operations in the US and New Zealand.

Steel is one of those commodities that can be produced worldwide, so in many ways, BlueScope is competing on a global stage. But, if western countries were to focus on just buying from western companies, or even just buying from domestic sources, then BlueScope could be a beneficiary.

While there may be fluctuations in demand, the ASX share could achieve stronger margins for its production.

However, it has recently come under pressure after judge Justice O’Bryan handed down a decision against BlueScope that it had engaged in “cartel conduct” as it “attempted to induce competitors to enter not price fixing arrangements” between September 2013 to June 2014.

The BlueScope Chair John Bevan said in an announcement to the ASX:

In the time since BlueScope first became aware of the conduct which led to the legal proceedings, BlueScope has implemented a number of steps to substantially strengthen its programs to enhance awareness of, and compliance with, competition law. The company has also made improvements to our organisational structure, internal systems and processes, training for employees, and developed in-house advisory capabilities in competition law.

Despite that ruling, the BlueScope share price is up 6% over the past month.

Transurban Group (ASX: TCL)

Transurban is a leading toll road builder, owner and operator. It has a number of toll roads in Australia and North America.

A lot of traffic goes on Transurban’s roads. People would still want to go places in a time-efficient manner, even if globalisation were to be reduced.

The ASX share is currently benefiting from a recovery from traffic after the impacts of COVID-19. It’s also seeing its tolls rise at a stronger rate because the indexation is linked to inflation, which is elevated at the moment.

Despite the higher interest rates, Transurban shares are flat for the year, and it has beaten the performance of the S&P/ASX 200 Index (ASX: XJO) by a small amount.

Cobram Estate Olives Ltd (ASX: CBO)

This may not be a familiar business to some investors, it is a farmer of olives and producer of Cobram Estate extra virgin olive oil, as well as other brands. It has a market value share of 49% in Australian supermarkets of extra virgin olive oil sales, and a 36% market value share of total olive oil sales.

A couple of months ago at its annual general meeting (AGM), the ASX share noted that the:

…vertically integrated model shields us from supply chain disruption. Unlike most food companies, our model extends from olive farming through to the sale of branded, locally grown extra virgin olive oil. The vast majority of our production and sales are within the two countries we operate – Australia and USA.

Despite being positive about the company’s future, the Cobram Estate Olives share price is down around 25% in 2022.

The post Home grown: 3 ASX shares that could benefit from ‘de-globalisation’ appeared first on The Motley Fool Australia.

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More reading

• Buy these ASX shares for their dividends: analysts
• 5 ASX 200 shares Macquarie just recommended its clients buy
• Here are the top 10 ASX 200 shares today
• Will ASX 200 shares bottom before the year is out? Here’s Macquarie’s ‘best guess’
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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 Scott Phillips.

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ASX healthcare shares are an interesting sector to look at for investment opportunities. Not only do many businesses in the industry offer defensive shares, but they are also benefiting from long-term growth.

Investment group Blackrock recently commented on its investment thoughts for 2023, saying:

In equities, we believe recession isn’t fully reflected in corporate earnings expectations or valuations – and we disagree with market assumptions that central banks will eventually turn supportive with rate cuts. We look to lean into sectoral opportunities from structural transitions – such as healthcare amid aging populations – as a way to add granularity even as we stay overall underweight.

We like healthcare given appealing valuations and likely cashflow resilience during downturns.

Here are three ASX healthcare shares that could benefit from growing demand for healthcare:

Pro Medicus Ltd (ASX: PME)

Pro Medicus describes itself as a leading healthcare informatics company. It provides a “full range of medical imaging software and services to hospitals, imaging centres and healthcare groups worldwide”.

Visage Imaging is a medical imaging solution business. Its platform is “ultra-fast, clinically rich, and highly scalable”, the company says.

It is benefiting from society’s desire for increasing technological abilities to help medical practitioners and patients.

The ASX healthcare share is winning major new contracts as well as renewing existing contracts. One of the most promising factors about the renewals is that they are being negotiated at a higher transaction cost than the original pay-per-view contract. An example of this was the University of Florida, seven-year, $15.5 million renewed contract.

Over the last six months, the Pro Medicus share price has gone up by 50%. However, according to Commsec, the Pro Medicus share price is valued at 109 times FY23’s estimated earnings.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara predominately aims to help save families from breast cancer, with “advanced cancer screening science and protocols”. It’s focused on detection and increasing prevention for women while digitising and reducing waste for medical professionals.

The company said in its FY22 half-year result that approximately 40.5% of screened women in the US have had contact with at least one Volpara product in obtaining their images and data. In HY22, operating expenses only increased by 3.4%, while revenue grew by 37%.

The ASX healthcare share is aiming to grow its average revenue per user (ARPU) to have more Volpara products used on patient images. The company is also looking to reach operating cash flow breakeven by the fourth quarter of FY24.

After a 41% fall of the Volpara share price in 2022, it’s now at a much cheaper level than it was in 2021 despite its ongoing revenue growth. The business is also working on growing its presence in lung cancer screening.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is a leading pathology and radiology business on the ASX. The advancement of technology is enabling the company to provide a more detailed pathology service for patients and medical practitioners.

Its base revenue continues to grow. Geographic expansion, as well as wider service offers, can be a tailwind for the ASX healthcare share.

One of the intriguing elements of Sonic’s business is the 20% investment in artificial intelligence (AI) business Harrison.ai, which has an existing radiology AI product called Annalise.ai. This is a market leader in radiology AI, according to Sonic. A brain CT scan product has also been completed, with tools for other modalities to follow.

Franklin.ai is a joint venture between Sonic and Harrison.ai to develop ‘best-in-class’ diagnostic tools for pathology. It’s targeting a first product release within two years.

The Sonic Healthcare share price is down over 30% in 2022 to date. According to Commsec, this puts the business at 19 times FY23’s estimated earnings.

The post Why I’d invest in these 3 ASX shares to combat this one inflationary megatrend appeared first on The Motley Fool Australia.

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More reading

• 3 top ASX 200 dividend shares I think are bargain buys right now
• 3 ASX shares I think are primed to break out in 2023
• Want healthy dividend growth? Why I’d buy this ASX 200 blue-chip stock
• 5 ASX 200 shares with juicy gross profit margins
• Why I’m buying ASX shares in this once-in-a-lifetime market to try and retire early

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pro Medicus and Volpara Health Technologies. The Motley Fool Australia has positions in and has recommended Pro Medicus and Volpara Health Technologies. The Motley Fool Australia has recommended Sonic Healthcare. 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 Rio Tinto Ltd (ASX: RIO) share price is trading lower on Monday morning.

At the time of writing, the mining giant’s shares are down 1% to $115.90.

Why is the Rio Tinto share price falling?

The Rio Tinto share price is falling today after weakness in the materials sector offset the release of a positive update on its proposed takeover of Turquoise Hill Resources.

The mining giant is aiming to acquire the Canadian miner in order to increase its stake in the massive Oyu Tolgoi copper and gold project in Mongolia to 66%.

According to today’s update, things have taken a major step forward after Rio Tinto received the required support from Turquoise Hill Resources shareholders for its proposed acquisition of the approximately 49% of the issued and outstanding shares of Turquoise Hill that it does not currently own.

What’s next?

Due to the transaction is being conducted by way of a Canadian plan of arrangement, it remains subject to the final approval of the Supreme Court of Yukon. A hearing has been scheduled for 14 December.

If all goes to plan, completion of the acquisition is expected in the days following court approval, after customary closing procedures.

Rio Tinto’s Copper chief executive, Bold Baatar, was pleased with the news. Baatar commented:

We welcome the support from minority shareholders, which is a key milestone in our acquisition of TRQ. This transaction will deliver significant benefits for all shareholders, and allow us to progress the Oyu Tolgoi project in partnership with the Government of Mongolia with a simpler and more efficient governance and ownership structure.

The post Rio Tinto share price falls despite Turquoise Hill takeover progress appeared first on The Motley Fool Australia.

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More reading

• Could the VAS ETF outperform the BHP share price in 2023?
• Here’s how I’d invest $20,000 in ASX 200 shares for a 7% dividend yield
• Why did ASX 200 iron ore shares like BHP have such a cracking Friday
• Brokers name 3 ASX shares to buy today
• Why Beach, Chalice Mining, Nitro, and Rio Tinto shares are rising today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re wanting to boost your passive income with some dividend shares, then you may want to look at the two named below.

Here’s what you need to know about these buy-rated ASX dividend shares:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share for income investors to look at is footwear and youth fashion retailer Accent.

It owns a growing stable of brands including HypeDC, Platypus, Stylerunner, The Athlete’s Foot, and Glue Store.

The team at Bell Potter is positive on the retailer and has put a buy rating and $2.10 price target on its shares. Its analysts were pleased with a recent update, commenting:

Accent Group (AX1) provided a trading update for the first 18 weeks of FY23, Group owned sales +52% on pcp and Gross margins +570bps vs down 700bps in the pcp. We see this as a solid start and expect AX1 to be well positioned as tougher comps are faced in Nov/Dec. We view the performance into the key seasonal period to be supported by the company’s healthy inventory position as per company’s commentary.

In respect to dividends, Bell Potter is expecting fully franked dividends of 10 cents per share in FY 2023 and then 12 cents per share in FY 2024. Based on the current Accent share price of $1.79, this would mean yields of 5.6% and 6.7%, respectively,

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

Another ASX dividend share to look at is Dalrymple Bay Infrastructure. It is an Australian infrastructure company and the long term operator (99-year lease) of the Dalrymple Bay Coal Terminal (DBCT), which provides terminal infrastructure and services for producers and consumers of Australian coal.

Given the very favourable outlook for Australian coal, Dalrymple Bay Infrastructure appears well-placed to deliver strong earnings in the near term. This is expected to lead to some bumper dividend payments in the coming years.

Morgans is a fan and has an add rating and $2.67 price target on its shares. It recently commented:

DBI holds the 99 year lease to the 85 Mtpa Dalrymple Bay Coal Terminal, of which c.80% of throughput is metallurgical coal (used in steelmaking). DBCT offers the cheapest export route-to-market for users within its Bowen Basin catchment region. DBCT is fully contracted from 2023 to 2028. In the current low interest rate environment, income-oriented investors will be attracted to DBI’s high cash yield and commitment to 1-2% [now 3% to 7%] pa DPS growth.

As for dividends, its analysts are forecasting dividends per share of ~21 cents in FY 2022 and FY 2023. Based on the latest Dalrymple Bay Infrastructure share price of $2.40, this will mean yields of 8.75%.

The post Need a passive income boost? Experts say these ASX dividend shares are buys appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Tyro Payments Ltd (ASX: TYR) share price is under pressure on Monday morning.

In early trade, the payments company’s shares are down 22% to $1.15.

What’s going on with the Tyro share price today?

Investors have been selling down the Tyro share price following the release of a takeover update.

According to the release, the company has ended takeover talks with both Potentia and Westpac Banking Corp (ASX: WBC).

The release notes that following extensive discussions with these parties and careful consideration by the board with assistance from its external advisers, it has decided to end current discussions in relation to a possible change of control transaction.

This is because it believes those discussions have not resulted in a proposal that fairly values Tyro. That’s despite Potentia lifting its offer to $1.60 per share, which values the company at an enterprise value of approximately $875 million on a fully diluted basis.

Management notes that this is still materially lower than where the Tyro share price has traded this year. For example, its 52-week high is almost double Potentia’s offer price at $2.93.

Westpac has also notified the company that it has decided that submitting an offer to Tyro is not in the best interests of its shareholders at this time.

What now?

Tyro advised that it remains open to engaging with any credible change of control proposal it receives that represents compelling value for shareholders.

For now, though, the company’s board and management will continue to focus on executing on Tyro’s current strategy.

Positively, Tyro confirms that it is tracking towards the top end of guidance for all operating metrics and is making good progress executing on its three strategic priorities for FY 2023. These are Tyro Go, Tyro Pro, and automated customer onboarding.

The post Tyro share price crashes 22% after ending takeover talks with Westpac and Potentia appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tyro Payments. The Motley Fool Australia has recommended Tyro Payments and Westpac Banking. 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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Coles Group Ltd (ASX? COL) shares haven’t done that much in 2022 compared to many other ASX shares which have fallen significantly. The supermarket giant’s share price is currently down 6% in the year to date.

However, I don’t think a business should be judged on short-term price movements. Instead, I think a company’s long-term plan needs to be evaluated.

Coles’ strategy

The business points to consistent growth throughout economic cycles with an average compound annual growth rate (CAGR) of 4.8% and liquor retailing CAGR of 7% over the last two decades.

The company has a number of goals, hopefully, all of which can help Coles shares in the long run.

Coles wants to be Australia’s most sustainable supermarket group. It’s working on transitioning to renewable energy by FY25. It’s also aiming for 100% recyclable, reuseable, or compostable own-brand packaging in Australia by 2025.

Another area of focus is to “win in food and drink”, with a strong omnichannel offering. It’s investing in a “unified customer experience” through website enhancements and increased investment with e-commerce partner Ocado, targeting an FY24 launch. Coles is also aiming for net new space growth of around 1.5% per annum.

The business wants to offer great value exclusive brands, as well as be a destination for health and convenience. It’s looking to expand its ‘exclusive to Coles’ range to around 40% of sales. Coles also wants to improve its ‘Coles Kitchen’ and ‘I’m free from’ brands.

Perhaps the most important element of the longer-term plan is ‘smarter selling’. Indeed, this could have a major impact on Coles shares. The company wants to achieve a long-term structural cost advantage through programs including data, automation, and technology partnerships.

Smarter selling

It’s working on further automating its supply chain and operations through German logistics company Witron and Ocado enhancements. Coles wants to accelerate self-service transformation in-store and invest further in technology, artificial intelligence (AI), and data.

The company says that it’s on track to deliver cumulative smarter selling benefits of $1 billion by the end of FY23 under its four-year program. In the first quarter of FY23, it opened three new supermarkets, taking the total network to 838, while also opening seven liquor stores.

Strategies include front-of-store loss prevention, ‘dynamic markdowns’, e-commerce van optimisation, and energy savings.

It’s spending a total of around $1.4 billion on the Witron and Ocado transformation projects. It’s a big spend but, hopefully, it helps Coles shares in the long term.

The company says the $1.04 billion spent on Witron is expected to deliver: safer working environments with improved service at a lower cost, reduced lead time to deliver better availability of stock, and a doubling of the volume on half the footprint with around two-thirds of the operating costs of a standard site. There are two warehouses being built – the one in Queensland is expected to be completed in the third quarter of FY23, while the NSW one is expected to be completed in the third quarter of FY24.

With Ocado, Coles hopes to achieve a seamless digital customer experience, improved product availability and freshness, greater product range, and increased network capacity.

Coles share price valuation

Looking ahead to FY24, according to Commsec, Coles shares are valued at under 21 times FY24’s estimated earnings and could pay an annual dividend per share of 66 cents per share, which is a grossed-up dividend yield of 5.6%.

The post Where will Coles shares be in 5 years? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group. 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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