UBS has this morning estimated that 16% of Macquarie Bank’s revenue in
the latest half year came from its purchase, repackaging and then float
of the Dyno Nobel explosives business. We’re talking net revenue of
$365 million on just one deal, which is breathtaking in itself.

However, this leads to the inevitable question of what the next Dyno
will be? With all those wannabe millionaire mouths to feed, the
pressure is on Macquarie to move further up the risk curve and take big
principal bets using its own balance sheet.

Dyno was almost certainly the best “buy, turn and sell” Macquarie has
ever pulled off, but today’s mooted $700 million capital raising, which
is yet to materialise and has left the stock suspended for almost two
days so far, is all about beefing up the balance sheet for even more
audacious plays.

There’s no doubt that Macquarie likes to massage its profits to produce
steady increases of between 10-20% each year. This can be done through
asset sales because at the moment the bank has an estimated $588
million in unrealised gains to be crystallised.

To that end, it has identified $1.34 billion worth of assets that will
be sold before September 30, when it closes the books on the first
half. They are as follows:

Peter Fray

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Peter Fray
Editor-in-chief of Crikey

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Region Asset Acquisition Date book value
US Baldwin County Bridge Dec 05 $95m
Europe Brussels Airport Dec 04 $27m
Europe UK Broadcast Jan 05 $66m
Asia CJ Cablenet June 05 $36m
Europe European Directories June 05 $168m
Europe Creative Broadcast Services July 05 $97m
Europe Isle of Man Ferries Oct 05 $87m
NZ Global Retirement Trust Dec 05 $99m
Global Smarte Carte Feb 06 $198m
US Icon Parking Feb 06 $174m
Asia HK Properties Oct 05 $145m
Asia Chinese Shopping Malls Oct 05 $145m
Total 7.3 months average