The Vancouver Business Thread

[craneSpotter]

Vancouver loses first place in international tax ranking: KPMG

BIV Jenny Wagler
Tue Sep 25, 2012

Chennai, India, has displaced Vancouver as the world’s most competitive tax jurisdiction for a large international city, in a ranking released by KPMG this morning.

When KPMG last analyzed rankings two years ago, Vancouver came in first among major international cities.

However despite the comparative slip, Vancouver’s 2012 score on KPMG’s total tax index – which measures total taxes paid by corporations in a location – has improved this year.

This year’s study found that Canada is the second most tax-competitive country after India among 14 major global economies. Besides Vancouver’s second place ranking internationally among peer cities, Toronto (fifth) and Montreal (sixth) also ranked in the world’s top 10 major international cities for tax competitiveness.

[craneSpotter]

Target selects Glentel to provide range of mobile products and services

Cartt.ca
October 04, 2012 (link)

BURNABY, BC - U.S. retail giant Target says it has selected Glentel Inc., to offer a choice of network carriers and a variety of wireless devices to customers at the majority of Target locations set to open across Canada in 2013.

"We are proud to be selected by Target as the exclusive operator of its mobile communications products and services display fixtures at the majority of store locations across Canada," said Tom Skidmore, president and CEO, Glentel. "As Canada's largest independent multi-carrier mobile phone retailer, Glentel is well positioned and committed to delivering its premium wireless retail experience to Target's valued guests across Canada."

Under the agreement, Target Canada is licensing the operation of the mobile communication sales and services display fixtures within its stores to Glentel Inc. under the brand Target Mobile.

[hollywoodnorth]

Vancouver keeps Hootsuite from leaving the nest

http://www.theglobeandmail.com/news/brit...h-tech-company-hootsuite/article5556110/


great news and a good use of the ex police sub station on 8th at Ontario.

[craneSpotter]

Microsoft unveils new Vancouver game studio

BIV, Nov 29, 2012

Microsoft has lifted the veil on a Vancouver studio that is developing a new game franchise...Microsoft Studios quietly began assembling a team of engineers and animators for Black Tusk Studios earlier this year, and publicly announced the new project this morning.

Located in Yaletown, Black Tusk Studios already has a staff of 50 people and the new studio manager – former Electronic Arts senior development director Mike Crump – said the plans are to double the head count over the next year.

Black Tusk is the third studio that Microsoft has opened or acquired in B.C. It opened a new studio in Victoria in January, and owns BigPark Studios in Vancouver.

[craneSpotter]

Another Vancouver law firm goes global with merger

BIV Nov 30, 2012

Partners at Vancouver law firm Fraser Milner Casgrain LLP have approved a merger with Salans LLP and SNR Denton to create another new global law firm...Fraser Milner Casgrain is now Denton's Vancouver...The new mega-firm has 2,500 lawyers and professionals in 79 locations in 52 countries across Africa, Asia, Europe, the Middle East and North America...The merger is part of a trend, driven by increased global trade. In October, Fasken Martineau announced plans to merge with Johannesburg-based Bell Dewar.

[osirisboy]

Here is a link to an article from the sun with a nice list of all the projects planned for in BC... (apologize if this has been posted already)

http://www.vancouversun.com/business/bc2035/Proposed+planned+under+construction/7448680/story.html

[craneSpotter]

Sierra Wireless Adds Communications Research Lab at SFU

DigitalHome, Nov 30

The Sierra Wireless Mobile Communications Laboratory at Simon Fraser University is designed to place B.C. at the forefront of the wireless communications industry...

...With ongoing collaborations with industry and research partners across North America, the lab is one of the most advanced in Canada and is capable of high-speed antenna pattern mapping...

...Fifteen companies are using the Sierra Wireless Mobile Communications Laboratory for advanced research, including San Jose’s Fastback Networks, a US start-up that develops smart antennas. Fastback Networks has established a B.C. branch to hire locally trained engineers for research and development.

[craneSpotter]

Glentel Acquires 428 Verizon Wireless Retail Outlets

DigitalHome Nov 30

Vancouver’s Glentel (well Burnaby, BC)...has agreed to purchase 428 US-based Verizon Wireless franchise stores for $83.3 million (USD). Operating currently as the Wireless Zone, the acquired outlets fit in well with Glentel’s Diamond Wireless chain, which is also a Verizon Wireless National Premium Retailer in the United States....

...Glentel’s presence in the Eastern US is quite heavy now and reaches almost 65 percent of the American population...The Wireless Zone buyout now brings the total number of retail locations operated by Glentel in Canada, Australia, and the United States to more than 1,180.

In October Glentel was selected by Target Canada as the exclusive operator of its mobile communications products and services offerings. Glentel has a similar business relationship with Costco Canada. Definitely a company to watch...

[craneSpotter]

First Quantum dismayed by Inmet's refusal to engage

Reuters - Nov 29

Vancouver based First Quantum Minerals Ltd (FM.TO) said on Thursday it believed Inmet Mining Corp's (IMN.TO) board was selling shareholders short by refusing to enter into talks on a takeover proposal put forward by First Quantum earlier this month.

Toronto-based Inmet, which is building the Cobre Panama copper mine in Central America, said on Wednesday it had turned down a C$4.86 billion ($4.89 billion) unsolicited proposal from its larger rival, saying the offer was "highly conditional" and not in the best interests of its shareholders...

...First Quantum, which owns assets in Africa, Australia, South America and Europe, said it believes that Inmet shareholders would support a transaction that offers immediate and attractive cash value for the shares.

[craneSpotter]

Westport announces expansion of Ford product line

BIV, Dec 3, 2012

Vancouver’s Westport Innovations Inc. (TSX:WPT) (NASDAQ:WPRT) announced this morning that it will be expanding its product line with the introduction of natural gas-powered versions of two (more) Ford Super Duty Trucks...

...The trucks will be built at the company’s Westport Kentucky Integration Center (WKIC) in Louisville, which opened in June of this year. This facility is located next to Ford Motor Company’s Kentucky Truck Plant.

Westport Innovations plans to have the two new products available on the market by mid-2013.

[craneSpotter]

Petronas and Progress announce go-ahead for $9-billion LNG plant at Prince Rupert

Much larger facility to be built if Ottawa approves Malaysian giant's purchase of Canadian company

GORDON HAMILTON, VANCOUVER SUN DECEMBER 4, 2012

VANCOUVER — Malaysian Energy giant Petronas and Canadian natural gas company Progress Energy say they are going ahead with plans to develop a $9 billion-plus liquefied natural gas plant at Prince Rupert despite a decision by Ottawa to reject the Malaysian company’s $5.9 billion bid to buy Progress...

The two companies have agreed to go ahead with the LNG plant independently of the takeover bid, Progress president Michael Culbert said Tuesday. But the joint venture partners also offered a tempting carrot if Ottawa reconsiders its decision to block the takeover bid: a much larger investment in B.C.’s northeastern gas fields and in its proposed LNG plant...British Columbia would benefit through the development of a new industry capable of creating investment, jobs and tax revenues....

...The joint venture partners have named the company that is to develop the LNG plant - Pacific Northwest LNG. Culbert said the new company is to establish an office in Vancouver early in 2013, around the same time it submits its plans to Canadian regulators. Pacific Northwest LNG’s target start-up date is 2018.

[craneSpotter]

Lululemon sees slower fourth-quarter sales growth, plans Hong Kong store

The Globe and Mail
Published Thursday, Dec. 06 2012

...Lululemon Athletica Inc. saw profit and sales increase in the third quarter but is anticipating a slump in sales growth as the year winds down.

The retailer also said it plans to open its first full-product store in Hong Kong and to test markets in up to 15 countries over the next two years...

...Vancouver-based Lululemon posted net profit of $57.3-million (U.S.) or 39 cents per share in the third quarter, compared with profit of $38.3-million or 27 cents in the year-earlier period...

...Sales rose 37 per cent to $316.5-million from $230.2-million in the year-earlier period...

...Lululemon has experienced inventory problems over the past year as it tried to keep up with consumer demand...

So looks like Lulu is well inside the billion dollar a year revenue club now.

[craneSpotter]

UBC School of Economics adding new international degree program

BIV - Thu Dec 6, 2012

The University of British Columbia has announced an expansion of its School of Economics that will add 10 new faculty members, more than 300 new student spaces and a new undergraduate degree program with a focus on the global economy.

“UBC’s Vancouver School of Economics will expand UBC’s place as a global leader in economic policy,” said school director Michael Devereux.

[hollywoodnorth]

Amazon to locate centre on Delta's Annacis Island
September 17, 2012

Amazon Canada Fulfillment Services announced plans Monday to locate a new fulfillment centre on Annacis Island in Delta.

The 200,000-square-foot facility will be the company's first on the West Coast and is expected to create more than 100 new full-time jobs.

http://www.delta-optimist.com/Amazon+locate+centre+Delta+Annacis+Island/7256260/story.html

[SFUVancouver]

Originally Posted by hollywoodnorth

Amazon to locate centre on Delta's Annacis Island
September 17, 2012

Amazon Canada Fulfillment Services announced plans Monday to locate a new fulfillment centre on Annacis Island in Delta.

The 200,000-square-foot facility will be the company's first on the West Coast and is expected to create more than 100 new full-time jobs.

http://www.delta-optimist.com/Amazon+locate+centre+Delta+Annacis+Island/7256260/story.html

Shame that isn't going to be built on Sea Island near the airport. With that said, I can see the attractiveness of cheap greenfield development land in Delta, even if their trucks are going to have to slog it out crossing the Fraser river crossings to reach the majority of the region's population. On the other hand, if the Amazon fulfillment is going to service the province as a whole, then a location close to the ferries to Vancouver Island and the South Fraser Perimeter Road/Hwy17 connection to Hwy 1 makes a whole lot of sense.

I wonder what the impact of tolls will be on the location preference of logistics firms that primarily serve the Metro Vancouver population, especially since the majority of the population is north of the Fraser. If growth projects hold up then that balance will likely reverse in the next couple decades. The slow progression towards tolls across the Fraser as new bridges are built will make south of Fraser locations incrementally more expensive than those on the other side. Would the advantage of cheap land and limited civic planning constraints in municipalities like Delta and Tswassen will be offset by bridge tolls?

[WarrenC12]

Originally Posted by hollywoodnorth

Amazon to locate centre on Delta's Annacis Island
September 17, 2012

Amazon Canada Fulfillment Services announced plans Monday to locate a new fulfillment centre on Annacis Island in Delta.

The 200,000-square-foot facility will be the company's first on the West Coast and is expected to create more than 100 new full-time jobs.

http://www.delta-optimist.com/Amazon+locate+centre+Delta+Annacis+Island/7256260/story.html

Now if only they could come anywhere close to amazon.com in terms of selection and prices, I might stop ordering things to Blaine WA...

[whatnext]

Vancouver's illustrious mayor has hopped on his latest bandwagon, this time calling for a slowdown on how much coal is shipped by Port Metro Vancouver. This follows hard on the heels of his joining First Nation bands calling for the defeat of Enbidge's Northern Gateway pipeline. No word yet on how the mayor plans to rev up the export of pixie dust.
http://www.cknw.com/news/vancouver/story.aspx?ID=1834584

[LeftCoaster]

Some more big M&A news for BC mining corps, with FQ continuing to persue Toronto based Inmet Mining:

First Quantum goes hostile with sweetened bid for Inmet
Mon Dec 17, 2012 10:15am EST

LONDON (Reuters) - Miner First Quantum (FM.TO: Quote) launched a sweetened offer for Canadian rival Inmet Mining (IMN.TO: Quote), taking to shareholders a deal that values the owner of the giant Cobre Panama copper project at about C$5.1 billion ($5.2 billion).

The offer of an improved C$72 per share, compares with two previous approaches that valued Inmet at C$70 and C$62.50 per share - both rejected by the miner's board.

The deal would create what First Quantum says would be one of the world's top copper producers.

Inmet's shares rose 5.58 percent to C$73.73 on Monday shortly after markets opened on the Toronto Stock Exchange. First Quantum's shares were down 3.2 percent at C$20.28.

First Quantum said in a statement on Sunday that its vision of a combined group was shared by Inmet's "key shareholders" - potentially crucial support, given the top four investors own almost 40 percent of Inmet shares.

Its bid for Inmet led some analysts and investors to question whether First Quantum was moving away from a strategy that has relied on its engineering and construction expertise to deliver mid-sized projects at below-average cost. But like others in the sector, the miner has battled a dearth of high-quality copper deposits needed to fuel growth.

Inmet owns Cobre Panama, one of the world's largest untapped deposits and one of the last not already in the hands of a major miner. But the project is also one of the world's most expensive - a cost First Quantum believes it could considerably reduce.

On current guidance, the cost of developing the $6.2 billion Cobre Panama project stands at $23,000 per tonne, according to analysts at Nomura, compared with an average capital intensity for the sector of $18,500 per tonne - and around $6,000 per tonne for First Quantum's greenfield Sentinel project in Zambia.

First Quantum is one of the few global miners primarily focused on copper, with operations in Zambia's copper belt, as well as in Australia, Finland and Mauritania.

Inmet, whose board has already adopted a rights plan it says would give it more time to evaluate bids, last week raised proven and probable reserves at Cobre Panama 27 percent.

"While the switch to a hostile approach may increase the chances of success, in our view execution risks also rise," Citi analysts said in a note.

"Without prior access to conduct due diligence, the ability of First Quantum to exploit its competitive advantage in capital cost management is likely to be reduced, increasing the risk of overpayment."

TURNING FRIENDLY?

First Quantum left the door open for Inmet's board.

"Our clear preference remains to engage with Inmet, as we believe strongly in the compelling strategic and financial merit of the transaction," Philip Pascall, chairman and CEO of First Quantum, said.

Inmet said in a statement on Monday that it had not yet received the formal offer from First Quantum and advised its shareholders to take no action at this time.

First Quantum said the combined company would be one of the world's fastest-growing copper producers, with the potential to produce more than 1.3 million tonnes per year by 2018.

According to details of the offer, Inmet shareholders can opt to receive either C$72 per share in cash, or 3.2962 First Quantum shares plus 1 Canadian cent. Inmet stockholders also have an option to go for a mix of C$36 cash plus 1.6484 First Quantum shares.

The offer value of C$72 per share is based on First Quantum's share price as of November 23, before its earlier formal proposal was made public. On current prices, it is worth C$70.5 per share.

The cash component of the deal will be financed through a combination of First Quantum's existing cash resources and a $2.5 billion facility that is being arranged specifically to implement the offer, the company said.

(Reporting by Clara Ferreira-Marques in London, Julie Gordon in Toronto and Sakthi Prasad in Bangalore; Editing by Mike Nesbit and Maureen Bavdek)

http://ca.reuters.com/article/businessNews/idCABRE8BG05220121217

[LeftCoaster]

And First Majestic Silver completed its takeover of Orko Silver, which didn't seem to well received by investors.

First Majestic Silver to Acquire Orko Silver; First Majestic Drops 8%, Orko Silver Jumps 55% Higher
By Midnight Trader, December,17 2012, 03:57:01 PM EDT

First Majestic Silver Corp. (FR.TO) and Orko Silver Corp. (OK.V) have entered into a definitive agreement whereby First Majestic has agreed to acquire all of the issued and outstanding common shares of Orko for consideration of 0.1202 of a common share of First Majestic plus $0.0001 in cash per Orko common share. The offer implies a value of C$2.72 per Orko share based on the closing prices of both First Majestic and Orko's common shares on the TSXV respectively, on December 14, 2012.

First Majestic is down 8.5% to $20.72, while Orko Silver has jumped 55% to $2.46.

http://www.nasdaq.com/article/first-maje...er-jumps-55-higher-cm199733#.UM-TeOQ8CSo

[GMasterAres]

Originally Posted by whatnext

Vancouver's illustrious mayor has hopped on his latest bandwagon, this time calling for a slowdown on how much coal is shipped by Port Metro Vancouver. This follows hard on the heels of his joining First Nation bands calling for the defeat of Enbidge's Northern Gateway pipeline. No word yet on how the mayor plans to rev up the export of pixie dust.
http://www.cknw.com/news/vancouver/story.aspx?ID=1834584

First nations just want money sorry to break it to people. If they get money from the projects they will be behind them. The Mayor on the other hand is all for the environment but unfortunately forgets that our entire world's economy is still run by gas and coal for the most part and while we are shifting to more sustainable energy, that will take _decades_ so why should Canada miss out in the near-term on money that eventually won't be there.

I don't think he has much of a say though given none of the coal would go through Vancouver itself. The Mayor's of Delta, Surrey, Langley and out would I'd imagine have a more valid opinion and say on the subject since trains will and do go straight through those jurisdictions.