☕️ Lonely Contrarian

Good morning.

Kiwi accounting software giant and ASX tech darling, Xero, is experiencing a stellar run with stock up 20% this year against a 1.4% rise on the broader market.

As Capital Brief reports, Xero has pinned its long-term aspirations – and those of its investors – to successfully slicing up the largest possible addressable market. Morningstar’s Roy Van Keulen may be the only analyst in town who thinks Xero is in a bind and that its surging value could be dependent on the pipedream of US expansion.  

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Market movers

Shares in renewable energy developer Genex Power surged over 32% during trading yesterday to close at $0.25, on news that its had received an improved indicative non-binding takeover bid from Japanese partner J-Power. While the first offer was knocked back by the Genex board, the new offer will see J-Power acquire the Genex shares that it does not already own by way of a members’ scheme of arrangement for 27.5 cents in cash per share, valuing it at $381 million.

The quick sync

• European Commission hits Apple with a €1.8 billion ($3 billion) antitrust fine, arguing that the tech giant abused its market dominance for the distribution of streaming apps. (European Commission Press Release)

• Former chief of Macquarie Group, Nicholas Moore, has encouraged Aussie startups to consider expanding into Southeast Asian markets. (Capital Brief)

• Almost 15 years since Greece’s economic meltdown during the eurozone crisis, Athens has started the sale of its 27% stake in Piraeus Financial Holdings. (Wall Street Journal)

• Alinta Energy slams proposed government powers which would allow delays to the closure of coal power stations; opposition says it could corrupt signals for investors to commit new spending to the power grid. (The Australian)

• Bitcoin has surged to over US$66,000 ($101,120), edging closer to its previous all-time high. The cryptocurrency rose over 5% during trading overnight, bringing it within 5% of its record high of US$68,990.90 reached in November 2021. (CNBC)

Trading floor

M&A

• Saba Capital quietly expands its Australian portfolio, holding stakes in MFF Capital, Platinum Capital, WAM Global, and LICs. (AFR)

• EMR Capital mulls timing for Kestrel coal mine sale amid robust market. (The Australian)

• Woodside did not renew membership with the Carbon Market Institute last year. (AFR)

• JetBlue and Spirit Airlines terminate $3.8b merger. (Capital Brief)

• J-Power and Macquarie Capital propose a dual-track bid for Genex Power to counter Skip Capital's stake. (AFR)

• Amber Infrastructure seeks a capital partner for iseek data centre business. (AFR)

• AFT Pharmaceuticals partners with Microsize for Maxigesic Rapid distribution. (Capital Brief)

• Global Infrastructure Partners is set to sell Pacific National stake. (AFR)

• Accenture acquires Melbourne-based consultancy The Lumery. (BNA)

Capital Markets

• Bhagwan Marine plans $100m IPO amid maritime industry surge. (AFR)

• ASX hits Lendlease with a ‘please explain’ notice after posting an unexpected earnings downgrade last month. (The Australian)

• Acusensus shares drop amid setbacks in US speed camera program. (BNA)

• TDM Growth Partners faces valuation challenges with top investments. (AFR)

• Data shows that the ASX’s tech dream is fading, as de-listings and acquisitions begin to add up. (AFR)

VC

• Gridcog, a Perth-based clean energy asset software company, has secured a £3.3m ($6.4m) Series A funding round from British fund AlbionVC. (AFR)

• German solar tech developer 1komma5° announces its largest Australian acquisition with Arkana Energy Group. (PV Magazine)

• Victoria startup Jupiter Ionics raises $9m Series A for green ammonia tech. (Capital Brief)

People moves

• RBC Capital Markets appoints former JPMorgan executive James Cornell as director for research sales. (AFR)

• Fletcher Building's chair Bruce Hassall steps down with immediate effect. (Capital Brief)

• Craigs Investment Partners adds Goldman Sachs’ Justin Queale to the team. (The Australian)

The watercooler