Good evening,

A predicted strong start to the week for Australian shares sets the scene for equity capital market deals to make a comeback, after a slower-than-expected reporting season and quiet fortnight since.

Fund managers reckon Citi’s equities desk was readying clients for a deal as early as Monday, which had bankers scrambling at the weekend trying to work out exactly what it was.

The one that bankers have been watching is Santos Ltd, and its near 10 per cent shareholder Great Multitude Ltd, which is owned by a handful of entities linked to China’s ENN Ecological Holdings and related entities. The stake’s been out of a voluntary escrow for more than 12 months, while the holder’s just become eligible for another dividend.

The other one worth watching in equity capital markets is toll roads group Atlas Arteria, which has been running the numbers on the Chicago Skyway motorway in the United States.

Two of Skyway’s three shareholders are keen to get out, and have been taking bids for their combined 67 per cent stake. Atlas Arteria’s been in the auction, which is due to come to a head. A successful bid would likely mean a funding call, including debt and equity components.

Elsewhere, Street Talk’s caught wind of a deal in the works at the newly listed APM International, which is considering acquiring a competitor in the Australian jobs services market.

And we have a new big name that’s stalking Nitro Software as part of a private equity consortium.

Happy reading,

Anthony Macdonald, Sarah Thompson and Kanika Sood
Street Talk editors