AUB deal shows cheap stock never out of fashion | Elanor chases Kiwi real estate hot shot Jasper | Retail Zoo says Betty’s Burge rs adds the sizzle

Good evening,

M&A Monday’s back, courtesy of insurance broking group AUB and TPG Telecom.

AUB signed its well-flagged deal to acquire UK group Tysers and funded it with the year’s biggest investment bank underwritten equity funding package, a $350 million deal via Goldman Sachs and Macquarie Capital.

While equity markets are wobbly, AUB showed cheap stock never goes out of fashion. Investors snapped up the shares at a 13 per cent discount.

Over at TPG, it surprised the market with a deal to sell its mobile telco towers to Canadian giant OMERS.

While we all knew TPG was assessing options for the towers, it went down the bilateral talks’ path with a very well-known buyer, and had its deal ready come Monday morning.

The other talking point on Monday was Chrysos, which shed another 6 per cent in the day’s trade.

The stock’s now down 40 per cent in its first two days’ trade.

In Street Talk tonight, we have spotted ASX-listed Elanor Investor Group chasing down a material acquisition across the Tasman, and obtained Retail Zoo’s “business update” to fund managers ahead of its potential listing.

We also have an update on AusSuper’s interest in Ramsay Health Care.

Happy reading,

Anthony Macdonald, Sarah Thompson and Kanika Sood

Street Talk editors