Latest news with #GuyDebelle
Business Recorder
6 hours ago
- Business
- Business Recorder
Tech stocks drag Aussie shares lower as markets assess Xero's Melio deal
Australian shares slipped on Thursday, pulled down by tech stocks as IT major Xero dropped after announcing a deal to acquire U.S.-Israeli payments provider Melio Payments and a discounted share placement to fund it. The S&P/ASX 200 index lost 0.1% to 8,553.30 points by 0104 GMT. The benchmark had ended largely unchanged on Wednesday. Technology stocks on the local bourse dropped 2.7%, led by a 7% decline in accounting software major Xero when it resumed trade on Thursday, a day after announcing it would buy Melio for as much as $3 billion. The company with A$30 billion ($19.57 billion) market capitalisation asked institutional investors for A$1.85 billion to help pay for the purchase, with the placement representing a 9.4% discount to Tuesday's close. Xero went on a trading halt before markets opened on Wednesday, pending the announcement of a 'corporate transaction and an associated equity raising'. The deal was announced soon after. Analysts have given the deal a cautious endorsement. 'Xero's acquisition of Melio… comes with short-term earnings dilution, integration risks and heightened exposure to a competitive and evolving U.S. fintech landscape,' said Mark Gardner, CEO and Head of Equities Advisory at MPC Markets. Australian shares flat as banks offset mining drag; inflation data eyed Jefferies reduced its target price for Xero to A$176.90 from A$194.80, citing that Melio would still be '-12% dilutive to earnings on a per-share basis in FY28'. Bucking the trend, miners gained 0.3% as copper prices rose, supported by a tentative ceasefire between Iran and Israel. BHP and Rio Tinto added 0.4% and 0.2%, respectively. In company news, Australia's securities regulator appointed former central bank deputy governor Guy Debelle to an expert panel to investigate ASX's governance, capability and risk management frameworks. However, the bourse operator's stock rose 0.3%. New Zealand's benchmark S&P/NZX 50 index fell 0.2% to 12,432.41 points.
Reuters
11 hours ago
- Business
- Reuters
Australian regulator names former RBA deputy governor to ASX probe panel
June 26 (Reuters) - Australian regulator said on Thursday it has appointed former central bank deputy governor Guy Debelle to a three-member expert panel to investigate the local bourse operator ASX's ( opens new tab governance, capability and risk management frameworks. This appointment follows the Australian Securities and Investments Commission's (ASIC) launch of a broad investigation into ASX last week. ASIC has also appointed Rob Whitfield as the panel chair, with Christine Holman joining as a panel member alongside former Reserve Bank of Australia deputy governor Debelle. Whitfield currently serves as the independent non-executive director of Commonwealth Bank ( opens new tab, the largest-listed company on the ASX, while Holman is the non-executive director of Australian firms AGL Ltd ( opens new tab and Collins Foods ( opens new tab. "The inquiry panel will be asked to make recommendations to address any identified shortcomings or deficiencies in relation to governance, capability and risk management within ASX group," ASIC said in a statement. The inquiry panel is also expected to submit a report to ASIC by March 31, 2026, outlining its findings and recommending any necessary next steps for the regulator to take. ASX did not immediately respond to a Reuters request for comment. ASIC's probe into the country's main stock exchange operator escalated tensions that have simmered for years amid a botched software upgrade and a series of trade-processing glitches. After facing delays, expenses and mandatory industry consultations, ASX abandoned its original upgrade plan in 2022. The following year, it brought on India's Tata Consultancy Services to develop a new, phased upgrade. According to ASX, the first part is scheduled for delivery in 2026. ASX also attempted to rebuild its clearing and settlement software platform with custom blockchain-like technology from 2017.
