8th Sep 2022 19:14
(Alliance News) - Frasers Group PLC will return to London FTSE 100 benchmark next week, replacing Meggitt PLC which is on its way out after accepting a takeover bid.
In August 2021, the aerospace components said it had accepted a GBP6.3 billion takeover offer from Parker-Hannifin Corp.
It will be deleted from the FTSE 100 index next week, index operator FTSE Russell said. Frasers, formerly known as Sports Direct International, will take its place.
Frasers was booted out of the blue-chip index back in March 2016. It has not returned since.
Replacing Frasers in the FTSE 250 will be WAG Payment Solutions PLC. The company, also known as Eurowag, processes toll and fuel payments for trucks around Europe. It listed just under a year ago, pricing its float at 150 pence per share. The stock has fallen 37% since.
The index changes will come into effect on Tuesday.
Separately, FTSE Russell said Cineworld Group PLC will be deleted from FTSE SmallCap Index and the FTSE All-Share Index, after it filed for US bankruptcy.
The company on Wednesday said it has begun chapter 11 bankruptcy proceedings in the US Southern District of Texas.
"As part of the chapter 11 cases, Cineworld, with the expected support of its secured lenders, will seek to implement a de-leveraging transaction that will significantly reduce the group's debt, strengthen its balance sheet and provide the financial strength and flexibility to accelerate, and capitalise on, Cineworld's strategy in the cinema industry," Cineworld said.
The picturehouse operator cautioned that the de-leveraging transaction will result in a dilution of shareholder equity.
It added: "Cineworld currently anticipates emerging from Chapter 11 during the first quarter of 2023 and is confident that a comprehensive financial restructuring is in the best interests of the group and its stakeholders, taken as a whole, in the long term. Cineworld looks forward to working with its creditors and stakeholders to advance the group's efforts to restructure its balance sheet."
By Eric Cunha; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.