Azzet reports on three ASX stocks with price moving updates today.
Eagers Automotive jumps after announcing equity raise and Canada acquisition
Shares in Eagers Automotive (ASX: APE) were up around 9.9% by 1:45 pm AEST (3:45 am GMT) after the diversified automotive retail group announced the completion of its $452 million equity raise to acquire a 65% stake in dealership group CanadaOne Auto for around $1 billion to expand into North America.
The deal is the first major overseas move for Eagers - which has around 14% of Australia’s dealership market - and will leave CanadaOne Auto’s founder Priestner with 35% of the business.
The stock entered into a trading halt on Wednesday in the wake of today’s announced update.
Overall, Eagers will pay $658 million in cash for the stake, to be largely funded by a $502 million equity raising and a $386 million issue of shares to an entity controlled by Priestner.
The deal is expected to give CanadaOne an enterprise value of $2.7 billion.
The Institutional Entitlement Offer raised around $143 million at the offer price of $21.00 per new share and is understood to have been well supported with take-up of over 98% by eligible institutional shareholders.
New shares under the Strategic Placement and Institutional Entitlement Offer - expected to be issued on 14 October 2025 – represent a 28.4% discount to the last traded price of $29.32 on Tuesday, 30 September 2025.
New shares under the Strategic Placement are being issued to Mitsubishi Corporation at $18.00 per share.
Meanwhile, the Retail Entitlement Offer is expected to raise $309 million, including the pro-rata entitlement for Director Nick Politis, who owns around 30% of Eagers, and entities associated with him of around $128 million.
Eligible retail shareholders, being a registered holder of Eagers shares as at 7 pm AEST (9 am GMT) on Friday, 3 October 2025, will be able to take up their entitlement to New Shares at the $21.00 Offer Price, on the terms and conditions outlined in the Retail Offer Booklet.
Commenting on today’s update, Eagers Automotive CEO, Keith Thornton told the market that CanadaOne represents an ideal partner in a highly attractive and fragmented market, providing plenty of runway for growth.
“The participation of Mitsubishi Corporation underscores their belief in our company and our shared goal of developing a strategic alliance that will fuel long-term business opportunities across our platform,” he said.
Founded in 1993, CanadaOne has 42 dealerships across British Columbia, Alberta, Saskatchewan, Manitoba and Ontario and sells both new and used cars across 20-plus brands from Toyota to BMW.
Commenting on the Eagers acquisition of CanadaOne, Wilson Asset Management believes the choice of Canada for expansion makes strategic sense.
“Canada’s market is 50 per cent larger than Australia’s, structurally more profitable, and remains highly fragmented,” said Wilson.
“It is also encouraging to see long-term alignment, with Nick Politis and CanadaOne founder Pat Priestner investing alongside shareholders.”
Eagers Automotive has a market cap of $7.8 billion; the share price is up 176% in one year and up 10% in the last month.
The stock is in a strong bullish trend confirmed by multiple indicators.
Consensus is Hold.
DigiCo Infrastructure REIT soars on new guidance
Shares in DigiCo Infrastructure REIT (ASX: DGT) were up 13.7% after the data centre operator announced new customer wins and said its earnings would be up over 25% on last year's result.
Shares in HMC Capital (ASX: HMC), which controls a 19.4% stake in DigiCo, also lifted 6.6% to $3.34.
Customer wins across DigiCo’s Australian data centre platform are 57% higher than the previous target of 26MW, which was only released in August.
Specific customer wins, including Hyperscale, Neocloud, enterprise and government, which are collectively expected to increase its contracted IT capacity to 41 megawatts by mid-2026, up from a previous target of 27 megawatts.
While these new customer wins are primarily at the SYD1 site, they also include new signings at the REIT’s Brisbane and Adelaide sites.
Based on strong market demand for larger and denser deployments, DigiCo is accelerating the expansion of SYD1 and utilisation of its 120MVA of allocated power.
The REIT’s CEO Chris Maher guided to underlying earnings for the 2025–26 financial year of between $120 million and $125 million, compared with last year’s result of $99 million.
Maher also guided to capital expenditure of $160-180 million, reflecting the larger capacity expansion at SYD1, to be funded through existing cash reserves and undrawn debt facilities.
Maher also flagged FY26 distributions totalling 12 cents per security.
“The Australian pipeline, customer demand and scale of deployments has continued to track ahead of expectations at the time of the IPO in December 2024,” Maher said.
“DigiCo is uniquely positioned to meet surging demand for high-density AI infrastructure.”
Today’s update follows the appointment of Chris Maher - head of digital infrastructure at HMC Capital - as CEO back in August.
DigiCo chief financial officer Simon Mitchell recently told the market that the REIT finished FY25 ahead of PDS guidance with annualised earnings of $99 million, liquidity of $740 million and gearing at the lower end of the 35% to 45% target range.
“This robust capital position provides the flexibility to progress our SYD1 development program, advance our U.S. campus developments and execute on capital partnering initiatives that will enhance balance sheet capacity for future growth," Mitchell said.
DigiCo Infrastructure REIT has a market cap of $1.7 billion; the share price is down 37% in one year and up 13% in the last week.
Consensus is Moderate Buy.
Mesoblast lifts on Ryoncil update
Shares in Mesoblast (ASX: MSB) were up 8.1% after Ryoncil, its therapy to treat children for complications that could occur during bone marrow transplants, got formal recognition from the United States Medicare & Medicaid Services.
Within its market update today, Mesoblast told the market that Ryoncil's "J-Code" from the U.S. Medicare and Medicaid Services (CMS) had become active for billing and reimbursement from October 1.
“Formal recognition by CMS is a significant milestone for Ryoncil as the product becomes easier to bill and pay for,” the company noted.
“The new permanent J-Code, J3402, provides a standardised, clear, permanent, and specific billing pathway for Ryoncil by Medicaid, facilitating reimbursement and broader patient access for this important therapy. Additionally, commercial payers look to the permanent J-code to update their coverage systems.”
It’s understood that Ryoncil is the first mesenchymal stromal cell product approved by the U.S. Food and Drug Administration for any indication, and the only treatment approved for children under 12 for steroid-refractory acute graft-versus-host disease (SR-aGvHD).
Commenting on today’s update, Mesoblast Chief Executive Dr Silviu Itescu described the J-Code becoming active as a significant milestone for the company.
“A permanent J-Code is a critical element for successful commercialisation of rare disease products, ensuring more efficient billing and enabling timely access to Ryoncil for children with life-threatening SR-aGvHD,” he said.
Last week the company reminded the market that its cell therapy products would not be subject to the 100% tariff on pharmaceuticals announced by US President Donald Trump, as they were manufactured in the U.S.
Back in August the company reported annual revenue from stem cell therapy products at US$17.2 million - up 191% for the year, with US$11.3 million coming from sales of Ryoncil.
Mesoblast also noted that the total addressable market for SR-aGvHD was about $1 billion.
Mesoblast has a market cap of $3.5 billion; the share price is up 106% in one year and up 38% in the last month.
While the stock’s 200-day moving average is trending upwards and highlights long-term investor interest in the stock, investors, the 20-day moving average is falling as upwards momentum wanes.
Consensus is Strong Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
