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AIM WINNERS & LOSERS: Hotel Chocolat, City Pubs surge on takeover bids

16th Nov 2023 11:07

(Alliance News) - The following stocks are the leading risers and fallers on AIM in London on Thursday.

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AIM - WINNERS

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Hotel Chocolat Group PLC, more than doubled at 364 pence, 12-month range 100p-368p. After a somewhat rocky year, the highstreet chocolatier agrees a takeover offer with US confectionery products manufacturer Mars Inc. Hotel Chocolat's shareholders will receive 375p in cash for each share, just short of triple the closing price of 139p on Wednesday, valuing the Hertfordshire, England-based firm at GBP534 million on a fully-diluted basis. "Mars believes it is well-positioned to support Hotel Chocolat's next growth phase with its international footprint, global supply chain and extensive commercial relationships, which could provide the Hotel Chocolat brand with an enhanced platform for growth in the UK and potentially in new geographies," the companies say.

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City Pub Group PLC, up 36% at 135.00p, 12-month range 69p-135p. The London-based owner and operator of 52 pubs agrees to a cash and shares takeover offer from fellow AIM-listing Young & Co's Brewery PLC worth around GBP162 million. Young's offer implicitly valued each City Pubs share at 145 pence each, a 46% premium to the closing price "at the last practicable date". City Pubs shareholders would receive 108.75p in cash plus 0.032658 new Young's shares for every City Pub share, based upon the "last practicable" closing price of 1,110p per Young's share. The takeover offer currently has 33% acceptances from City Pubs shareholders, and its directors encourage shareholders to vote in favour of the deal in upcoming meetings. "The board believes the transaction significantly accelerates the value that could be realised in the short term by City Pubs if it were to remain independent," City Pubs says. Shares in Young's fall 0.9%.

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AIM - LOSERS

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Craven House Capital PLC, down 27% at USD0.16, 12-month range USD0.07-USD0.45. The investment fund shares fall as it notes an announcement from failed consumer lender Amigo Holdings PLC. Amigo says that a potential rescue deal that was in the works with Craven House investees has been terminated with immediate effect. A month ago, Amigo entered an exclusivity agreement with Craven House Capital "and others". The parties were to discuss the idea of Amigo buying four businesses from Craven House that are in different fields from lending. This would have been in exchange for new shares in Amigo. Craven House also would have subscribed for new Amigo shares to invest at least GBP5 million. Craven House had explained that the businesses in question are part of investee companies Garimon Ltd and Honeydog Ltd, in both of which it holds a 29.9% stake. Amigo CEO Danny Malone says: "This is disappointing news as the transaction, in the form of a reverse takeover of Amigo, offered a solution that could have provided a future for shareholders, offering some small value that wouldn't be available otherwise."

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By Elizabeth Winter, Alliance News senior markets reporter

Comments and questions to [email protected]

Copyright 2023 Alliance News Ltd. All Rights Reserved.

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