Next big thing: A successful InvIT from NHAI is a hot idea - Moneycontrol.com |
- Next big thing: A successful InvIT from NHAI is a hot idea - Moneycontrol.com
- High Risk Merchant Accounts and How to Keep Them Safe from Chargeback - The Open News
- AMAG Files Definitive Consent Revocation Statement and Sends Letter to Shareholders - Yahoo Finance
- Business news live: Eurozone recession draws nearer as German private sector shrinks for first time since 2013 - The Independent
| Next big thing: A successful InvIT from NHAI is a hot idea - Moneycontrol.com Posted: 23 Sep 2019 12:08 AM PDT  Maadhav Poddar Infrastructure investment trusts (InvITs) of late have been attracting a lot of attention in India. For the uninitiated, InvITs are trusts, similar to mutual funds listed on a stock exchange, which raise funds from investors, acquire income yielding infrastructure assets, manage such assets and distribute regular yields to investors under a SEBI-regulated framework. InvITs can be privately placed or public – Both the formats have to be listed on an Indian stock exchange. While privately-placed InvITs can raise funds only from institutional investors and have relatively relaxed investment conditions, the public ones can do so from retail as well as institutional investors and have more diversified and low risk investment conditions. There is also a third format recently introduced by SEBI, which is a privately placed and unlisted InvIT. However, in this article, given the context, we have focussed more on public listed InvITs. While InvIT regulations were introduced by SEBI in July 2014 and related tax regulations through Budget 2015, InvITs as a product did not really take off until 2017. However, since 2017, there has been consistent activity in this space.
The Indian government is keenly exploring InvITs as a possible means to monetise its infrastructure assets, perhaps because of the myriad benefits it brings for all the stakeholders involved while contributing to infrastructure development. Government bodies such as NHAI and PGCIL (Power Grid Corporation of India) have been experimenting with the InvIT route to monetise their road and power transmission assets, respectively.
related newsAccording to recent media reports, while the proposal to monetise roads and highways through the InvIT route has been approved by NHAI, it is awaiting Cabinet approval. This InvIT is most likely to be a public InvIT, having private participation as well, and is expected to be cleared for implementation in the latter half of 2019, according to the reports. While action on the ground is more visible now, the idea of use of InvITs for monetisation of such assets has been under consideration for a couple of years. The late Arun Jaitley, the then finance minister, in his Budget Speech of 2018 had said: "The government and market regulators have taken necessary measures for development of monetising vehicles like InvIT and Real Investment Trust (ReIT) in India. The government would initiate monetising select CPSE assets using InvITs from next year." More specifically, in the context of roads and highways, he added: "To raise equity from the market for its mature road assets, NHAI will consider organising its road assets into special purpose vehicles and use innovative monetising structures like toll, operate and transfer (TOT) and infrastructure investment funds (InvITs)." There have been media reports in the recent past, citing that NHAI is under financial stress and its toll revenues may not be sufficient to service interest payments on its financial obligations. The Prime Minister's office (PMO) had also written a letter to NHAI in August 2019, suggesting discontinuing construction of roads by NHAI and encouraging the private sector to take over the running of completed projects. The idea is perhaps to overcome the unplanned and excessive expansion of roads and high costs for land acquisition and construction being incurred by NHAI. One of the suggestions to NHAI was also to monetise its existing assets through InvIT. Given the ambitious Bharatmala project for providing seamless connectivity of interior and backward areas and borders of the country, NHAI has a huge task ahead to achieve. The proposed InvIT will surely provide the much-needed capital for this programme and help the state-owned entity. While NHAI has also been looking at other modes for financing such as ToT, collaborating with NIIF (National Investment and Infrastructure Fund), issuance of bonds to LIC and central budgetary allocations, given the ambitious target of expansion of roads and highways the government has set for itself, InvITs could still play a very significant role. The proposed InvIT should help in attracting long-term and patient capital from foreign investors, who have shown a high degree of interest in other InvITs listed in India. In fact, InvITs have attracted foreign investors who had hitherto not invested in India. These foreign investors are typically pension funds, sovereign wealth funds and insurance companies which are hooked to the advantages InvITs offer in terms of corporate governance, stable long-term returns because of mandatory distribution rules, lower risks, high quality assets and tax benefits on income distributions. The InvIT should also provide a breather to the Indian banking sector by providing an aid to refinance existing high cost debt of NHAI with long-term low-cost capital from investors and help banks free up or reduce loan exposure to the road builder. It's seen to provide an efficient and optimum structure for financing and re-financing of road and highways projects and free up NHAI's capital for reinvestment in other avenues. A successful listing of such an InvIT by a marquee government body like NHAI could significantly boost investor confidence, which would help catalyse more InvITs in India, meaning more foreign capital. Given the potential benefits, the proposed InvIT by NHAI is the next big thing in the Indian landscape and should play a pivotal role in propelling infrastructure growth, contributing towards realisation of the dream of a $5 trillion economy. Maadhav Poddar is Tax Partner, Infrastructure and Real Estate, EY India. Views are personal.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app. | ||||||||||||||||||
| High Risk Merchant Accounts and How to Keep Them Safe from Chargeback - The Open News Posted: 23 Sep 2019 02:54 AM PDT Accepting debit card or credit card payments has become the standard these days. Gone are the days when merchants could operate as a cash-only business. However, if the business is considered to be high risk, it can be difficult to obtain a merchant account to be used for electronic payments. What is a High Risk Merchant Account?First of all, there would be costs associated to accepting credit cards as a form of payment. Some of the major card networks such as American Express, Discover, Master Card and Visa charge interchange fees for using their network and the Merchant Service Providers (MSPs) also charge processing fees for the connection of the card from the issuing bank to the acquiring bank through payment processors like TSYS or First Data. Since the processor and the merchant account provider assume the majority of the risk for a transaction, they would charge fees for the services, including the interchange fees which the card networks charge. High premiums are charged on merchant accounts to minimize the risks associated with risky merchant accounts. Generally, a high-risk merchant account is one for an industry or business which is notorious for fraud, chargeback and is considered to be risky by association. How to Know if One Is a High-Risk Merchant? Now that you have an idea of what a high-risk merchant account actually is, the risk level of businesses as determined by MSPs would be examined. When applying for a merchant account, there would be an underwriting process which the account provider would use to eliminate the risk of adding the account to the portfolio. Here are some of points that are taken into account.
The type of business that one operates would have a significant impact on the rates that they would have to pay for each credit card transaction. High-Risk BusinessesThe following are some of the high-risk businesses.
Options Available for High Risk Merchant AccountsIf a business falls within any of the high-risk categories as mentioned above, there is still hope. It is still possible to obtain a merchant account. However, the rates and terms of the contract would be less desirable as compared to other low-risk accounts. However, there is still good news because there are plenty of merchant service providers which specialize in accounts, that are high-risk. Besides, as the cannabis industry and online gambling makes it way towards national legalization, it wouldn't be a surprise for more high-risk account providers to prop up in the future. It is even possible for these types of businesses to lose their high-risk category altogether. Although, most of the MSPs advertise low-risk and standard merchant rates, when it comes to high-risk account fees, they are normally less transparent as there are more variables which need to be considered. However, one thing is for sure and that is the fact that high-risk merchants are expected to pay about 1-2 percent or more for every transaction. In addition to the above, it is likely that the account provider would require a reserve to be kept by you if you are deemed to be a high-risk business. MSPs offer three types of reserve accounts.
How to Keep Safe from ChargebacksThe following methods should be used to prevent chargebacks. Be Transparent and Upfront Whichever product that you sell, it is important to describe each component of the product in complete detail. Although, this seems obvious, many businesses fail to completely disclose the information about their products. It is advised to show interactive demos, images or free trials. It offers customers with plenty of information. Chargebacks can be mitigated by allowing customers to make more informed decisions. Have a Clear Merchant Name It is the name which appears on the customer's bank statement or credit card. You would be more likely to receive chargeback if the name is listed other than the business name when the transactions occur. The customer would question their transactions if they are not able to recognize the company name. Learn to Spot Fraud If you run a local shop, then there would be regulars. It means that if they use their spouse's card or parent's card then you might not be as alarmed. However, if you use an online storefront, then there would be extra legwork involved. Pay attention to suspicious details such as a mismatch between shipping address and billing, or incorrect credit card codes. | ||||||||||||||||||
| AMAG Files Definitive Consent Revocation Statement and Sends Letter to Shareholders - Yahoo Finance Posted: 23 Sep 2019 05:00 AM PDT Details Caligan Partners' Reckless Business Ideas and Inexperienced Director Nominees Urges Shareholders to Sign and Return AMAG's GREEN Consent Revocation Card WALTHAM, Mass., Sept. 23, 2019 (GLOBE NEWSWIRE) -- AMAG Pharmaceuticals, Inc. (AMAG) ("AMAG" or the "Company") today announced that it filed a definitive consent revocation statement with the U.S. Securities and Exchange Commission on September 20, 2019, and has sent a letter to AMAG shareholders. The letter contains AMAG's response to the consent solicitation made by Caligan Partners LP ("Caligan"), including AMAG's thoughts on Caligan's director nominees and Caligan's views on the Company's business and strategy. AMAG urges shareholders to sign and return AMAG's GREEN Consent Revocation Card and disregard any white consent cards received from Caligan. The full text of the letter is as follows: September 23, 2019 REJECT CALIGAN'S SELF-SERVING AND RECKLESS ATTEMPT Caligan's Nominees and Ideas for AMAG Show a Shocking Lack of Experience and Understanding of AMAG's Business and Put the Value of Shareholder Investment at Risk! Dear AMAG Shareholder, Just four months ago, AMAG held its 2019 Annual Meeting of Shareholders, where AMAG shareholders overwhelmingly voted in support of AMAG's slate of experienced and accomplished directors by an average of more than 90% of the vote. Only a few weeks later, Caligan Partners LP, a new and inexperienced activist hedge fund, began to quickly accumulate shares in AMAG, and last month Caligan initiated what appears to be a rushed, aggressive and misleading scheme to seize near control of your AMAG Board. Now you are essentially being asked by Caligan -- as part of a rarely used corporate action called a consent solicitation -- to remove and replace four members of the recently-reelected Board as a precursor to risky and ill-informed changes that Caligan wants to make at AMAG. AMAG fears that the changes proposed by Caligan, a firm with zero pharmaceutical investment or operating experience, would be catastrophic to AMAG's ongoing strategic evolution which is focused on driving sustainable, long-term shareholder value by creating durable revenue streams through the development and commercialization of innovative therapies for patients in need. AMAG strongly urges you to reject Caligan's proposals and to discard any White Consent Cards you receive from them. AMAG IS EXECUTING ON AN AMBITIOUS AND CAREFULLY DEVELOPED STRATEGY AND HAS TAKEN ACTION TO POSITION SHAREHOLDERS FOR LONG-TERM VALUE CREATION In 2016, AMAG's Board and Management team correctly recognized the changing landscape for specialty pharmaceutical companies. At that time, AMAG had only two pharmaceutical assets: Feraheme, which had a limited label and could only address a portion of the target patient population; and Makena intramuscular formulation, which was facing loss of orphan drug exclusivity and likely significant generic competition. The need for an ambitious strategic realignment was clear. By early 2017, AMAG had begun executing on a five-year strategic plan aimed at extending the life of its current products -- the broad iron deficiency anemia (IDA) trial for Feraheme and the subcutaneous auto-injector for Makena -- while diversifying the portfolio to create opportunities for a new chapter of financial growth and long-term sustainable shareholder value creation. Fewer than three years into this five-year strategic evolution, AMAG has transformed itself from a two product company with limited growth opportunities to a six asset company with two durable core products, two innovative women's health products, and two development-stage therapies. The AMAG Board and Management team acknowledge that these types of transformations can impact financial performance and share price in the short-term. However, this transformation supports the potential to generate significant and durable revenue growth, aligned with AMAG's vision to identify new and better ways to help support patients and families along the path to health. AMAG has been successfully executing on a strategic evolution away from its previous "spec pharma" model, in comparison to several peers who have not successfully pivoted and today face uncertain futures (peers that Caligan has apparently ignored). A portfolio chart accompanying this release is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/90a9d9fd-34ad-438b-83e3-6920cdfb55f1 Caligan sits on the sidelines, casting exaggerated criticisms without proposing an actionable, constructive and forward-facing plan, and ignores significant accomplishments that have been realized in AMAG's strategic evolution. An example of this strategy and its strong execution is AMAG's success with Feraheme – the Company made the strategic decision to design and execute a 2,000 patient IDA trial for Feraheme in February 2016, at a cost of approximately $30 million, which has already provided a strong return on investment. AMAG achieved approval for the broad label a year ahead of schedule, has grown Feraheme revenue from approximately $100 million in 2017, to approximately $135 million in 2018 and the Company is on track to achieve approximately $165 million in 2019. This represents nearly $100 million of incremental revenue since the broad label was approved in February 2018. Since unveiling and commencing the strategic plan, AMAG has consistently executed against this plan, evolving its Board, Management, product portfolio and financial profile including by taking the following actions: Recently Enhanced Board of Directors
Diversified AMAG's Product Portfolio and Development Pipeline
Successfully Achieved FDA Approval of Three Products
Divested Cord Blood Registry (CBR) Business in August 2017
Strengthened Financial Profile and Balance Sheet, Substantially Reducing Debt
Even Caligan agrees about the Company's strong execution, and in their public materials state that "AMAG has a collection of valuable assets," acknowledging that "Feraheme and Makena subcutaneous auto-injector continue to grow market share" and the overall business "possesses several fundamental upside drivers." These successful commercial pharmaceutical products, along with valuable investigational treatments in the AMAG portfolio, were developed and launched by the AMAG Management team and Board that Caligan is looking to recklessly disrupt. Upon reviewing the full set of Caligan's proposed ideas, the Board and Management team were shocked at what they found. AMAG CONDUCTED A RIGOROUS REVIEW OF CALIGAN'S BUSINESS IDEAS AND FOUND SLOPPY RESEARCH, WILD ASSUMPTIONS, MISLEADING PEER GROUPS AND CALIGAN'S CONFUSION ABOUT AN ENTIRE BUSINESS CATEGORY Consistent with its fiduciary duties, AMAG's Board and Management team have thoroughly reviewed the proposals included in Caligan's consent solicitation with the assistance of independent financial and legal advisors. Following its review, AMAG's Board believes that Caligan's ideas are reckless and irresponsible and recommends that shareholders reject Caligan's proposals, because: 1. Caligan's suggestions represent a dramatic and fundamental misunderstanding of how value is created in the pharmaceutical industry and the value in AMAG's business model and strategic plan.
2. Caligan uses cherry-picked and constantly changing peer groups in an apparent effort to mislead investors.
3. It appears that Caligan does not understand, or deceptively conflates, the difference between market opportunity and guidance.
4. AMAG believes that Caligan does not understand, or is actively trying to confuse shareholders about, an entire AMAG business segment.
____________ AMAG's Board and Management team believe Caligan's proposed ideas for AMAG are ill-informed and lack any rational path to creating shareholder value. Caligan's decision to focus their plan solely on a critique of AMAG's past highlights their apparent lack of experience in, and understanding of, the pharmaceutical industry. AMAG's highly-skilled and experienced Board and Management team are tirelessly executing on the Company's established five year strategic plan, and regularly explores and undertakes strategic opportunities for the entirety of its business, including a number of recent acquisitions, the divestiture of CBR, and structural optimizations. Any suggestion by Caligan that the AMAG Board hasn't reviewed and considered various alternatives for its portfolio and strategy is false. Further, it seems clear that any work Caligan is suggesting along the lines of a "Comprehensive Review of AMAG" by their proposed new Board members, only one of whom has any experience in the pharmaceutical industry, would be uneducated in its execution and likely destructive. THE AMAG BOARD HAS DETERMINED THAT CALIGAN'S NOMINEES ARE NOT QUALIFIED TO SERVE ON AMAG'S BOARD AMAG's Board reviewed the credentials of Caligan's nominees in a good-faith effort to assess if any might be qualified to be part of AMAG's ongoing Board refreshment process. Notably, the AMAG Board has a very rigorous Board-refreshment process focused on identifying specific experience needs, aimed at building a well-rounded Board with a balance of requisite competencies and expertise, underscored by the recent addition of two new highly-qualified directors to the AMAG Board. The Caligan nominees, however, appear to have minimal industry experience and at least one has a conflict of interest. For example, AMAG found that:
Furthermore, it is both alarming and concerning that Caligan has proposed to replace the Chairman and the Chair of every Committee on the AMAG Board (along with their combined decades of pharmaceutical industry and institutional knowledge), with its own nominees, who clearly lack any institutional knowledge of the Company. AMAG strongly urges you to reject these nominees, disregard the White Consent Card from Caligan and sign and return the Company's GREEN Consent Revocation Card. Caligan was formed just one year ago and is a relatively unknown quantity. Most of the global investment community doesn't know who Caligan is because there is only record of one prior investment in the entire history of their fund. Caligan has not provided AMAG investors, nor its own investors, with any insight into the mandate of their specific Caligan investment fund, nor its time horizon. However, even a cursory review of the founders of Caligan shows a suspect track record and conflated expertise. Here is what AMAG does know. Caligan has:
AMAG HAS A CLEAR PATH FORWARD TOWARD CREATING SIGNIFICANT AND SUSTAINABLE VALUE Creating a sustainable portfolio of pharmaceutical assets in the bio-pharmaceutical industry demands a long-term view and a thoughtful approach. The progress made to date on the strategic evolution of AMAG has positioned the Company with a favorable risk-reward profile. AMAG believes, and even Caligan agrees, that the inherent value of this favorable profile is not currently reflected in AMAG's share price. Very few of AMAG's peers have pipeline product candidates that hold the potential of a therapy for a medical condition where no treatments exist today and a potential next-generation therapy in a large and growing market; AMAG-423 is being investigated to treat severe preeclampsia, and ciraparantag is being reviewed as a potential best-in-class anticoagulant reversal agent. Not only is AMAG working to develop these important potential therapies, but the cash flow generation of AMAG's core commercial products – Feraheme and Makena subcutaneous auto-injector – will fund the clinical development and new product launch costs. AMAG generates its own cash flows to invest in its future, where many companies with promising new pharmaceutical companies are dependent on the constant sale of new equity to fund clinical development and new product launches. AMAG's newly-approved and developmental-stage therapies are forecasted to drive future revenue generation, positioning AMAG for significant growth and for the creation of significant shareholder value:
Investments in the launch of Vyleesi and the development of the Company's late-stage clinical products will allow AMAG to bring additional innovative therapies to patients in need and build a new chapter of durable, sustainable growth for shareholders. The AMAG Board strongly objects to Caligan's gross misrepresentation of the Company and urges AMAG shareholders to reject its short-sighted attempt to destroy AMAG's progress. The reality is that shareholders already voted in favor of directors with support of its directors by an average of more than 90% of the vote just four months ago. Consistent with that vote, AMAG urges you to support your Company's Board by signing, dating and returning the enclosed GREEN Consent Revocation Card TODAY. If you receive a White Consent Card from Caligan, please disregard it. REJECT CALIGAN'S ATTEMPT TO PUSH ITS STRATEGY UPON YOU DO NOT SIGN OR RETURN ANY CALIGAN WHITE CONSENT CARDS If you have any questions or require assistance, please contact AMAG's proxy solicitor, Innisfree M&A Incorporated, by calling toll-free at (877) 750‐0926 or collect at (212) 750‐5833. Sincerely,
Important Additional Information and Where to Find It In connection with the consent solicitation initiated by Caligan, the Company has filed a consent revocation statement and accompanying GREEN consent revocation card and other relevant documents with the Securities and Exchange Commission (the "SEC"). SHAREHOLDERS ARE STRONGLY ENCOURAGED TO READ THE COMPANY'S DEFINITIVE CONSENT REVOCATION STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), ACCOMPANYING GREEN CONSENT REVOCATION CARD AND ALL OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders may obtain a free copy of the definitive consent revocation statement, any amendments or supplements to the consent revocation statement and other documents that the Company files with the SEC at the SEC's website at www.sec.gov or the Company's website at http://ir.amagpharma.com as soon as reasonably practicable after such materials are electronically filed with, or furnished to, the SEC. Forward-Looking Statements This communication contains forward-looking information about AMAG within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Any statements contained herein which do not describe historical facts, including, among others, the belief that any corporate action taken must be for the benefit of all Company shareholders and must be rooted in a strong understanding of the pharmaceutical industry, AMAG's business and its important milestones ahead, beliefs about AMAG's strategy and long-term value creation, beliefs about AMAG's strategic plan and implementation thereof, beliefs about AMAG's financial profile and its Board and expectations as to and beliefs about the consent solicitation are forward-looking statements which involve risks and uncertainties that could cause actual results to differ materially from those discussed in such forward-looking statements. Such risks and uncertainties include, among others, the impact and results of the consent solicitation and other activism activities by Caligan and/or other activist investors; as well as those risks identified in AMAG's filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2018, its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2019 and June 30, 2019 and subsequent filings with the SEC which are available at the SEC's website at www.sec.gov. Any such risks and uncertainties could materially and adversely affect AMAG's results of operations, its profitability and its cash flows, which would, in turn, have a significant and adverse impact on AMAG's stock price. AMAG cautions you not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. AMAG disclaims any obligation to publicly update or revise any such statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements. About AMAG AMAG is a pharmaceutical company focused on bringing innovative products to patients with unmet medical needs. The company does this by leveraging its development and commercial expertise to invest in and grow its pharmaceutical products across a range of therapeutic areas, including women's health. For additional company information, please visit www.amagpharma.com. AMAG Pharmaceuticals Contacts: Innisfree M&A Incorporated Media: Sard Verbinnen & Co  | ||||||||||||||||||
| Posted: 23 Sep 2019 01:22 AM PDT  Thomas Cook collapse leaves couple's £40,000 wedding in jeopardy A bride and groom whose wedding party paid £40,000 for flights and hotels through Thomas Cook are nervously waiting to find out if their marriage can go ahead following the collapse of the travel giant.
"Heartbroken" Amy Wright, 27, and a wedding party of around 40 people were due to travel on 3 October to the island of Kos in Greece. "My sister got a phone call from the travel agent at 7 o'clock this morning. She's been helpful and said she'll put us at the top of the list," she said. "Thomas Cook staff have been really helpful but it's the people from above who aren't telling people what to do." | ||||||||||||||||||
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