Daily Brief Australia: Webjet Ltd, Westgold Resources, Yancoal Australia and more

• Back on the 22 May, global travel outfit Webjet (WEB AU)  announced it was exploring the separation of its two divisions – Webjet and Webjet B2C – via a demerger. 
• If the demerger is implemented, shareholders will receive one Webjet B2C share for every Webjet share; plus retain their existing shares in Webjet (to be renamed WEB Travel Group).
• A demerger booklet has been dispatched, with a 17th September vote on the in-specie distribution. If approved, WEB Travel (ex-entitlement) and Webjet B2C commence trading on the 23rd September.  

• With 2 trading days left in the review period, there could be 30 adds/deletes across the S&P/ASX family of indices in September.
• Passive trackers will need to trade a lot of stock in the forecast changes, with the impact being especially large for the changes to the S&P/ASX 200 and S&P/ASX 300.
• The forecast adds have hugely outperformed the forecast deletes. Borrow recall on the deletes and increased borrow availability on the adds could result in underperformance following announcement of the changes.

• Company had strong half year results with 990 million in operating EBITDA and 420 million NPAT
• They have 1.55 billion in cash and are debt-free, with majority of revenue from thermal coal production
• Despite recent 20% drop in share price, company is on track and has good long-term prospects

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