Daily Roundup

Codan's Major Mission-Critical Expansion

Codan Limited is making a significant strategic move, agreeing to acquire Eventide Communications LLC for approximately $244 million through its Zetron subsidiary. Eventide, established back in 1971, brings serious credentials to the table—the company operates over 9,000 live recorders across 80 countries and specializes in mission-critical recording and analytics solutions. The deal will beef up Zetron's command-and-control ecosystem by integrating Eventide's recording, reporting, and operational insights capabilities. Codan plans to fund the acquisition through a mix of cash reserves, debt facilities, and deferred equity issuance, with the deal expected to close in early 2027. The company anticipates the acquisition will be mid-single digits EPS accretive in its first full year, while also driving geographic and vertical expansion opportunities.

Banking Sector Delivers Strong Results

ANZ Group Holdings has reported robust full-year results for the year ended 30 September 2026, with statutory profit climbing 23% to $7,270 million and cash profit surging 31% to $7,591 million. The bank proposed a final dividend of 83 cents per share, 80% franked, with a record date of 13 November and payment on 18 December.

Beyond the headline numbers, ANZ has been firing on multiple cylinders operationally. The group delivered a record $902 million in gross cost savings, exceeding earlier guidance. Return on tangible equity improved to 12.03%, while the Level 2 CET1 ratio held steady at 16.6%, demonstrating a solid balance sheet. The integration of Suncorp Bank is progressing well, with 60% of activities completed and a June 2027 finish line in sight. ANZ is also accelerating its single customer front-end rollout, with 45% complete and expectations to hit 80% by March 2027. The bank has further strengthened its non-financial risk management framework, making substantial progress on its Root Cause Remediation Plan.

Service Stream's Bold Acquisition Play

Service Stream Limited is stepping up in a major way, announcing plans to acquire Programmed for $975 million. The facility management and asset management services provider acquisition is expected to deliver over 20% EPS accretion on a pro forma FY27 basis, including $30 million in run-rate cost synergies. To fund the deal, Service Stream is raising $475 million through a $219 million placement and a $256 million entitlement offer, alongside debt facilities and existing cash. The company expects completion around 1 March 2027, subject to regulatory approval and standard conditions. This acquisition represents a step change in revenue and earnings growth for FY27, supported by positive momentum from recently mobilized agreements. The company requested a trading halt pending the announcement of the institutional component's outcome.

Data Center Investment and Mining Milestone

Goodman Group, in collaboration with Digital Realty, has acquired a 9.9% interest in NEXTDC through a 50:50 jointly owned special purpose vehicle at an average price of $9.22 per share. Both parties have no current plans for further engagement beyond this acquisition and don't intend to submit a control proposal or takeover offer, though they've reserved the right to reconsider if circumstances change. As experienced data center investors, both companies remain open to collaborating with NEXTDC's board and management.

Meanwhile, IGO Limited has successfully concluded mining and processing at its Nova Nickel Operation, finishing strong after nearly a decade of operation. The company exceeded its life of mine guidance across the board—nickel production reached 21,340 tonnes, 7% above the top end of guidance, while cash costs came in at A$3.90 per pound of payable nickel, 8% below the lower end of updated guidance. Copper and cobalt production also beat revised targets. IGO expects to complete the divestment of Nova to Global Lithium Resources Limited in the coming weeks.