Takeover bids sent EQT Holdings sharply higher, while Ovanti collapsed after leaving the buy now, pay later market. Strong results from lenders and fund managers were offset by steep falls in several stocks.
Investors also weighed dividends, buy-backs, cost cuts and regulatory risks across a busy week of company news.
- EQT Holdings (ASX:EQT) rose 25.21% after receiving competing takeover proposals.
- Ovanti (ASX:OVT) fell 33.33% after quitting the global buy now, pay later market.
- Iress (ASX:IRE) dropped 19.97% despite an 85% rise in first-half profit.
- Financial companies reported strong growth, led by Cuscal, L1 Group, AFG and Judo Bank.
- Several companies raised dividends or buy-backs, including Challenger, Credit Corp and HUB24.
Ovanti (ASX:OVT) was the week's biggest faller, dropping 33.33% after it exited the global buy now, pay later market. EQT Holdings (ASX:EQT) jumped 25.21% as BGH Capital and TPG Global each proposed cash takeover prices. Iress (ASX:IRE) fell 19.97%, even though its first-half profit rose 85%.
Takeover bids lift EQT
EQT received a non-binding offer of $24.75 per share from BGH Capital. TPG Global then proposed $24.55 per share. Neither proposal is a firm deal.
Investors bought EQT shares because a completed takeover could deliver a cash payment well above the earlier trading price. The board has not backed either bid. It is still checking the proposals and has not given shareholders any action to take.
The buying continued after the stock reopened at $1.15 following a trading halt. It then rose 12.61% from that reopening price. That sustained buying suggests investors are weighing the chance of a higher offer, but the deal could still fail during checks or regulatory reviews.
Financial firms report strong growth
Cuscal (ASX:CCL) rose 8.82% after statutory profit climbed 49% to $42.7 million. The Indue and Paymark purchases expanded its payments business across Australia and New Zealand. Management expects underlying profit and transaction volumes to grow by about 20% in FY27.
Australian Finance Group (ASX:AFG) gained 3.90% after profit increased 39% to $48.5 million. Its broker network passed 4,300, while its manufacturing loan book grew 30% to $7.1 billion.
Judo Bank (ASX:JDO) added 5.95% after profit before tax rose 34% to $168.1 million. Loans grew 18% and deposits rose 24%. The result shows continued demand from small and medium-sized businesses, although higher bad-debt charges remain a risk.
Fund managers reward investors
L1 Group (ASX:L1G) climbed 17.19% after statutory profit rose 79% to $145.2 million. Merger savings beat the original target, which was lifted to $43 million for FY27. The shares also moved 12.61% from their reopening price after a trading halt.
Regal Asian Investments (ASX:RG8) rose 6.11% after its portfolio returned 52.6%. Asian semiconductor holdings benefited from strong demand linked to artificial intelligence. The company bought back more than eight million shares and lifted its final dividend to 10 cents.
HUB24 (ASX:HUB) delivered record platform inflows of $18.9 billion and lifted underlying earnings by 30% to $211.4 million. Its shares nevertheless fell 12.50%. Investors may have wanted stronger guidance or questioned the price already reflected in the stock. The fall shows that a good result does not always bring more buyers.
Restructures and rule changes unsettle stocks
Ovanti's exit from buy now, pay later was a major change. The company will focus on its iSentric business in Southeast Asia after its United States BNPL unit entered bankruptcy. Investors sold the stock because the move removes the business that once offered the biggest growth story. The stock reopened at $0.002 and recorded no recovery from that level.
Iress reported higher profit after cutting costs and selling businesses. Revenue fell 16.9% to $247 million. Investors focused on the smaller business and the challenge of producing growth after those sales. That concern outweighed the better profit result.
Bendigo and Adelaide Bank (ASX:BEN) fell 6.17% after the banking regulator imposed conditions over weaknesses in non-financial risk controls. The bank will spend $70 million over three years to fix the problems. Its capital position remains strong, but the work could cost more than expected.
Dividends and deal dates matter
Challenger (ASX:CGF) reported 3% growth in normalised profit to $468 million, raised its dividend by 7% and increased its buy-back to $450 million. Its shares still fell 2.02%. Zip Co (ASX:ZIP) also posted record cash earnings, but fell 5.86% after announcing the closure of its New Zealand operations.
Credit Corp (ASX:CCP) rose 6.31% after agreeing to buy HSBC Australia's credit card run-off book for about $150 million. The deal lifted FY27 profit guidance by 10%, subject to approval and completion.
Steadfast Group (ASX:SDF) gained 6.20% as its consortium extended exclusivity while final checks continued. The stock reopened at $5.51 and then rose 2.54%. Investors are still waiting for a binding agreement, so the price could change if talks fail.
Bottom Line?
Company news remains event-driven into the next reporting dates. EQT is due to release FY26 results on 20 August, while Steadfast's extended exclusivity ends on 21 August. PEXA will discuss its FY26 results and FY27 outlook on 28 August, and Excelsior Capital is scheduled to suspend trading and delist on 28 August. NZX's new chief executive starts on 14 September.
Questions in the middle?
- Will EQT Holdings receive a higher or binding takeover offer before its 20 August results?
- Can Iress turn its cost savings into lasting revenue growth after selling several businesses?
- Will Ovanti's iSentric business provide enough income after the company leaves BNPL?