Australia’s major banks settle class actions, Core Lithium’s shares surge and AGL board defeated
CBA, Westpac and ANZ will payout a combined $126 million as part of a class action alleging they were misleading and deceptive towards customers over credit insurance products.
Three of Australia’s major banks have announced the settlement of separate class action lawsuits totalling $126 million with compensation and class action law firm Slater and Gordon.
Slater and Gordon first took the banks to court two years ago over the sale of credit insurance products.
The law firm filed the suits against the Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corporation (ASX: WBC), and Australia and New Zealand Banking Group (ASX: ANZ), on behalf of around one million customers.
Slater & Gordon alleged the banks made customers believe policy payments were “compulsory or provided value to them”, while also misleading and being deceptive towards customers.
Commonwealth Bank, along with associated parties, including Colonial Mutual Life Assurance Society (CMLA) and AIA Australia, will pay up to $50 million to customers.
ANZ, along with QBE Insurance, OnePath Life and OnePath General Insurance will fork out a total of $47 million, with ANZ contributing towards $42 million of that amount.
Westpac also looks set to pay $29 million towards its customers as a result of the alleged actions.
Slater & Gordon senior associate Alex Blennerhassett said the cash settlement was the best way impacted customers could receive compensation for the banks’ wrongdoings.
“Taking on the big banks was never going to be easy but we are pleased that we have been able to resolve these group proceedings and that eligible customers will benefit,” she said.
Core Lithium
Core Lithium’s (ASX: CXO) shares surged on Monday – helped by news China will ease some of its COVID-19 restrictions moving forward.
China hasn’t removed all restrictions, but it has been reported the nation will ease quarantine times for close contacts and halt recording secondary contacts.
Core’s share price shot up on Monday also following the announcement that the company’s chief financial officer is stepping down, but leaving it in a strong position.
The outgoing chief financial officer said his time in the role was the “highlight of his career” to-date.
“It has been hugely rewarding to see the company move from an exploration opportunity to a project and now an operating mine.”
“I am pleased to be leaving the business in very sound financial shape,” he added.
Core chief executive officer Gareth Manderson said Mr Iacopetta’s longstanding efforts have contributed to the company’s successes today.
“While disappointed when Simon told me of his decision, I appreciate and acknowledge his hard work over the past four years and the rapid progress Simon and the Core team have made to develop the Finniss mining operation,” he said.
The company confirmed a global hunt is underway for a new chief financial officer calling on specialist executive search firm Korn Ferry.
AGL Energy
After a drawn-out battle, AGL Energy’s (ASX: AGL) shareholders have chosen to elect all four board candidates nominated by leading shareholder, billionaire Mike Cannon-Brookes at the annual general meeting held this week.
The decision is part of AGL’s effort to strengthen the nation’s largest greenhouse gas emitter’s decarbonisation plans moving forward.
AGL’s chair Patricia McKenzie has now acknowledged the election of all four candidates Mr Cannon-Brookes had nominated via his investment company Grok Ventures: Mark Twidell, Kerry Schott, Christine Holman and John Pollaers.
The board had rejected three of the four candidates, with Ms McKenzie saying their skill sets were already present within the board or not required.
“After careful consideration, the board determined that, although the other candidates nominated by entities associated with Grok Ventures are respected directors in their own right, their skill set was either already present on the board or not aligned to the priority skills that were being sought through the existing board renewal process,” she said.
Shareholders apparently disagreed with the board’s decision, as the election of the new directors was sealed by proxy votes received before its AGM on Tuesday.
Despite initially disagreeing, Ms McKenzie says the board will welcome the new elected members and offer full support.
“The board welcomes these new directors to the board and will work constructively with them in the best of interests of shareholders,” she said.
It is believed the latest additions now add growing pressure to the giant to further prioritise its switch to renewable-energy sources.
Yancoal
Australian start-up Green Gravity has signed a memorandum of understanding (MoU) with Yancoal (ASX: YAL) to run a pre-feasibility study aiming to explore the use of its technology in decommissioned ventilation shafts, commencing at Yancoal’s closed Austar mine in NSW.
Led by former BHP Group (ASX: BHP) executive Mark Swinnerton, Green Gravity announced Austar as the first test site for its gravity energy storage system (GESS), which will use up to 30 tonnes of steel coil lowered into vertical mine shafts.
The company aims to complete the study in 2023, working to understand the tech’s potential for working in the NSW grid as a long duration energy storage provider.
Green Gravity said Yancoal’s site was adequate for testing its technology.
“The Yancoal mineshafts are in the 400-500m depth range and we consider this depth to be supportive of commercial scale operations for the technology,” it said.
Yancoal Australia chief executive officer David Moult said the company continues to explore renewable energy opportunities – prioritising post-mining land use.
“This MoU with Green Gravity is a demonstration that we are serious in assessing potential renewable energy opportunities and in collaborating with innovative partners to progress our strategy and vision for Yancoal’s future,” he said.
Beach Energy
Beach Energy (ASX: BPT) has won Warrego Energy (ASX: WGO), after agreeing to a scheme implementation deed with the Perth-based company.
Warrego’s board has urged investors to vote in favour of Beach’s offer, which has been preferred to Strike Energy’s (ASX: STX) merger proposal, which has been on the cards for a number of years.
The board said it planned to unanimously recommend the Strike merger to shareholders after successful due diligence, but the offer from Beach was too good to turn down.
Warrego managing director and chief executive officer Dennis Donald said the offer put forward by Beach was the right opportunity.
“The premium offered to our share price recognises the strong underlying value of our assets as well as providing the ability to realise further upside from the future potential sale of Warrego’s assets in Spain,” he said.
The deal now awaits court approvals, meaning the door is potentially open for a greater offer if Strike decides to table an increased bid.