ASX:CGF

Challenger to Merge Fidante With Channel Capital

Challenger (ASX:CGF) entered a binding agreement to combine its Fidante multi-affiliate funds management business with Channel Capital, creating a new entity to be named Channel Group, according to a Thursday filing with the Australian bourse.Fidante, which oversees AU$86 billion in assets, will merge with Channel Capital under Channel Group to form an active investment platform managing roughly AU$150 billion across equities, fixed income, and alternative assets, per the filing.The company will retain a 45% equity stake in the new group, receive up to AU$172 million in cash payments, and anticipate a pre-tax gain on sale of around AU$100 million in fiscal 2027, the filing said.Completion is anticipated in the first half of fiscal 2027, pending regulatory approvals.The company will enter a transitional services agreement of up to 24 months and expects separation and transaction costs of about AU$5 million to AU$8 million in fiscal 2027, the filing added.

ASX Preview: Australian Shares Set to Fall as US Fed Signals Tighter Stance; Challenger to Merge Fidante With Channel Capital

Australian shares are poised to fall on Thursday after the US Federal Reserve signaled a tighter policy outlook under new Chair Kevin Warsh, keeping interest rates steady while flagging potential hikes ahead.Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average fell 1.2%, 1.3%, and 1%, respectively.In the macroeconomy, investors are eyeing Australia's upcoming consumer price index report, due next week.In corporate news, Challenger (ASX:CGF) entered a binding agreement to combine its Fidante multi-affiliate funds management business with Channel Capital, creating a new entity to be named Channel Group.Washington H. Soul Pattinson (ASX:SOL) agreed to divest its interest in certain Brickworks (ASX:BKW) property division industrial joint venture trust assets to Goodman Australia Industrial Partnership and related Goodman Group (ASX:GMG) entities for AU$1.89 billion under a binding agreement.Australia's benchmark index rose 0.5% or 48.6 points to close at 8,966.30 on Wednesday.

Ventia Services Group Says Challenger Raises Stake

Ventia Services Group (ASX:VNT, NZE:CGF) said Challenger (ASX:CGF) raised its voting power in the firm to 6.24% from 5.03%, as of May 29, according to Tuesday filings with the Australian and New Zealand bourses.Challenger now holds 51.2 million shares in the firm.Ventia's shares rose nearly 2% in recent trading on the New Zealand bourse.

ASX Biggest Losers

Here are the ASX-listed companies with the biggest losses on Tuesday.ASX (ASX:ASX): -12%, AU$51.51Elevra (ASX:ELV): -7%, AU$12.75PEXA Group (ASX:PXA): -7%, AU$10.67Infratil (ASX:IFT): -5%, AU$12.29Yancoal Australia (ASX:YAL): -4%, AU$6.69Telix Pharmaceuticals (ASX:TLX): -4%, AU$12.82Challenger (ASX:CGF): -4%, AU$8.89Whitehaven Coal (ASX:WHC): -4%, AU$8.51Netwealth Group (ASX:NWL): -3%, AU$21.69Paladin Energy (ASX:PDN): -3%, AU$11.13

Challenger's Fiscal 2026 Q3 Update Missed Consensus Across Key Life Metrics, Jarden Says

Challenger's (ASX:CGF) fiscal 2026 third-quarter update missed consensus across key Life metrics, with FM outflows significantly worse than expected, driven by institutional equity mandate attrition in both Australian and global equities, according to a Tuesday note by Jarden.The firm's redemption of all CGFPC notes on May 25 simplifies the capital structure, reduces the AT1 coupon burden, and is earnings-per-share accretive.Jarden sees balanced risk/reward for Challenger in the future, with catalysts including capital management flexibility from the Australian Prudential Regulation Authority reform, as well as expanding retirement partnerships across superfunds.It lowered its fiscal 2026 sales forecast to reflect weaker institutional fixed-term sales, partially offset by higher retail annuity sales as partnerships come online.The investment firm retained its neutral rating on Challenger and raised the price target to AU$8.70 per share from AU$8.60 per share.

Jarden Research Adjusts Challenger's Price Target to AU$8.70 from AU$8.60, Keeps at Neutral

Challenger Reports Lower Fiscal Q3 Assets Under Management, Tightens Fiscal 2026 Normalized EPS Outlook; Shares Tumble 5%

Challenger (ASX:CGF) reported fiscal third-quarter assets under management of AU$116.28 billion, down from AU$125.63 billion a year earlier, according to a Tuesday filing with the Australian bourse.The company said it has tightened its fiscal 2026 normalized basic earnings per share guidance range to between AU$0.66 and AU$0.70.Challenger previously guided for normalized basic EPS of AU$0.66 to AU$0.72 when it reported fiscal first-half results in February.The company's shares tumbled 5% in recent Tuesday trade.

Challenger to Redeem All Outstanding Challenger Capital Notes 3

Challenger (ASX:CGF) will redeem all of its outstanding Challenger capital notes 3 on May 25 at their face value of AU$100 each in cash, according to a Tuesday filing with the Australian bourse.The redemption has been approved by the Australian Prudential Regulation Authority.A final distribution of AU$1.47 per note is expected to be paid on May 25 to all registered holders as of May 15, the company said.