3rd Nov 2025 07:52
(Alliance News) - BP sells stakes in US onshore midstream assets for USD1.5 billion, Empiric Student Property says it will be challenging to deliver its occupancy target for this academic year, while M&C Saatchi rejects a GBP50 million approach from Brave Bison for one of its divisions.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called up 0.1% at 9,727.45
GBP: higher at USD1.3147 (USD1.3135 at previous London equities close)
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BROKER RATINGS
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UBS cuts Vodafone to 'sell' (neutral) - price target 80 (72) pence
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Citigroup cuts Pennon to 'neutral' (buy) - price target 542 (539) pence
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RBC raises Dunelm to 'outperform' - price target 1,300 (1,200) pence
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COMPANIES - FTSE 100
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BP divests non-controlling interests in the Permian and Eagle Ford midstream assets for USD1.5 billion. The London-based oil major sells the interests to funds managed by private investor Sixth Street. The consideration is structured in two phases, with around USD1 billion paid upon signing with the balance expected by the end of the year, subject to regulatory approval. The midstream assets encompass bpx energy's pipelines and facilities in the Eagle Ford and Permian basins, including four Permian central processing facilities. bpx Energy is BP's US onshore oil and gas business. Its ownership interest in the Permian midstream assets will move to 51%, from 100%, while its Eagle Ford ownership interest will fall to 25% from 75%. Sixth Street will hold the remaining, non-operating interests. BP says the transaction delivers a "material contribution" towards its 2025 expected divestment proceeds and target of USD20 billion of divestments by the end of 2027. "We recognised early on that investing in midstream would be an important ingredient to our success in these basins in terms of driving value, flow assurance, and lowering emissions," says bpx Energy Chief Executive Officer Kyle Koontz. "This transaction reinforces that we are on track to maximise the return on our investment in these basins and allows us to continue operating them safely and efficiently."
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COMPANIES - FTSE 250
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Empiric Student Property says the booking cycle for the 2025/26 academic year has "continued to moderate" with occupancy standing at 89%, compared to 95% in October 2024. Like-for-like rental growth is in line with guidance at 4.5%, the London-based student accommodation provider says. The firm says there has been a slowdown in the pace of reservations since September 9. "Assuming that current conditions do not change, delivery of the company's occupancy target for this academic year will be challenging," it says. The company says it has experienced a reduction in the number of Chinese students booking stays this year. Empiric declares a dividend of 0.925 pence per share for the third quarter and reconfirms its target dividend of 3.7p for the year. Unite notes the update and says it had assumed lower occupancy and rental growth than the previous academic year. Unite says Empiric's occupancy for the academic year is "slightly below" these expectations while rental growth is in line with its expectations. Empiric in August agreed to a takeover offer from Unite, valuing Empiric at roughly GBP710 million, or GBP723 million including dividends. Unite reaffirms confidence in earnings and dividend accretion from the acquisition, which it expects to be supported by annual run-rate synergies of at least GBP13.7 million. Empiric says it continues to expect the takeover to become effective in the first half of 2026. The UK Competition & Markets Authority started a phase one investigation into the merger last month. Empiric Chief Executive Officer Duncan Garrood says: "Rental growth remains in line with guidance and we are well positioned for January sales activity. All the while, we have continued to improve the quality of the portfolio whilst delivering on capital deployment commitments."
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OTHER COMPANIES
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M&C Saatchi confirms it has received an unsolicited approach for its M&C Saatchi Performance division, or MCSP, from London-based marketing technology firm Brave Bison. M&C Saatchi, the London-based advertising and communications agency, says the board believes the offer "fundamentally undervalues" the division and "does not reflect the future prospects for the division which forms a core element of the company's growth plans". Therefore, it says no discussions are ongoing. Brave Bison notes press reports and confirms it submitted a non-binding proposal with an enterprise value of GBP50 million. Brave Bison says it intends to combine MCSP with its existing performance marketing operations. It says the combined business would be one of the largest independent performance marketing companies outside the US. In 2024, the M&C Saatchi Media division generated net revenue of GBP26.8 million with 8% growth. Brave Bison says MCSP accounts for the "vast majority" of net revenue in the Media division. Should the acquisition complete, Brave Bison expects MCSP to contribute a minimum of GBP8 million adjusted earnings before interest, tax, depreciation and amortisation. This would increase the enlarged Brave Bison pro-forma adjusted Ebitda by more than 80% to GBP17 million. MCSP is a performance marketing business, headquartered in Singapore. Brave Bison plans to fund the acquisition with a new bank facility of up to GBP25 million, for which it has received a letter of support from a UK lender, and a placing of new shares to existing and new investors. "There can be no certainty that the acquisition will conclude nor the terms on which any acquisition will conclude," Brave Bison notes.
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Ryanair lifts its annual traffic growth view after "strong" demand in the first half, but it cautions that comparisons get trickier as the year progresses. The budget carrier adds that it is "too early provide meaningful" profit guidance but it does expect to "recover all of last year's 7% full-year fare decline". Dublin-based Ryanair says pretax profit in the first half ended September 30 increases 40% to EUR2.89 billion from EUR2.07 billion. Revenue rises 13% to EUR9.82 billion from EUR8.69 billion. Net profit increases 42% to EUR2.54 billion from EUR1.79 billion. "Fares benefitted from having the full Easter holiday in Q1 (with weak prior-year comps) and we achieved a full recovery of the 7% fare decline we suffered in last years Q2. Ancillary revenue was solid," Chief Executive Officer Michael O'Leary says. Ryanair expects full-year traffic to increase by more than 3% to 207 million passengers, up from a previous forecast of 206 million. This is due to "earlier than expected Boeing deliveries and strong H1 demand". The firm says third quarter booking are slightly ahead of the year prior, "particularly across the October mid-term and Christmas peaks". However, it notes "more challenging" comparatives in the second half are looming. "As is normal at this time of year, we have zero Q4 visibility and there is no Easter benefit in this year's Q4," it adds.
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Winvia Entertainment starts trading on London's AIM market with a placing price of 195p per share. The London-based technology-led entertainment business is focused on the large and "highly fragmented" UK prize draw market, and the regulated Romanian online gaming market. Winvia says the placing comprises of 20.5 million placing shares, giving an enlarged share capital after admission of 105.1 million shares. The company says the market capitalisation of the comping at the placing price on admission is GBP205.0 million. Winvia CEO Mihai Manoila says: "Today's admission to AIM marks a major step for Winvia Entertainment. We've built a highly profitable, technology driven business across two fast-growing markets, UK prize draws and regulated online gaming, and we see considerable scope to accelerate our growth strategy in the UK Prize Draw market through organic and inorganic opportunities. We were delighted by the strength of investor demand for the Placing which resulted in it being substantially oversubscribed and reflects confidence in what we've achieved so far and in the scale of the opportunity ahead. I'd like to thank our team and other stakeholders for their commitment throughout this process as we now focus on delivering the next phase of growth as a listed company."
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By Michael Hennessey, Alliance News reporter
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