14th Jul 2025 07:54
(Alliance News) - DCC announced a deal to sell a part of its technology arm for GBP100 million, GSK is pursuing US approval for expanded use of its RSV jab, while South32 warned of an impairment at an aluminium smelter in Mozambique.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called down 0.1% at 8,932.82
GBP: lower at USD1.3454 (USD1.3503 at previous London equities close)
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Bitcoin continued to rise at the start of the week, surpassing the USD120,000 mark early on Monday for the first time since it first came onto the market some 15 years ago. On the Bitstamp trading platform, the price rose to USD121,488, after nearly hitting the USD120,000 mark over the weekend. Analysts attribute the oldest and best-known cryptocurrency's steady increase in value to the new political landscape in the US following Donald Trump's return to the White House in January. Trump had been very negative about bitcoin during his first term in office, from 2017 to 2021, but actively courted the crypto community in last year's re-election campaign. Since the US election in November, the value of bitcoin has risen by around three quarters.
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BROKER RATINGS
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JPMorgan places IAG on 'positive catalyst watch'
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COMPANIES - FTSE 100
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DCC announced it has agreed a deal to sell its Info Tech technology arm in the UK and Ireland to private equity investor Aurelius in a deal worth around GBP100 million. The sales, marketing and support services group said that what would remain from DCC Technology is its Pro Tech business, "principally based in North America". "The divestment of Info Tech in the UK and Ireland is a further material step in simplifying our Group and focusing on our high growth, high return, energy business. It follows the sale of DCC Healthcare announced in April 2025. We have made huge strategic progress this year," DCC CEO Donal Murphy said. DCC said the deal values the units being sold at roughly GBP100 million on an enterprise basis. The Info Tech business in the UK and Ireland achieved revenue of GBP2 billion in the year ended March 31, contributing roughly 1% to DCC's continuing operating profit. "The net cash proceeds to DCC of the transaction are not material, reflecting the working capital seasonality, and the supply chain financing associated with the business. DCC also retains freehold title of our UK national distribution centre in Burnley, England. The transaction is subject to receipt of customary regulatory approvals and expected to complete in the fourth quarter of this calendar year," the company added.
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GSK said it has submitted a US regulatory application for the expanded use of its Arexvy respiratory syncytial virus vaccine. The drug maker said the US Food & Drug Administration has accepted for review an application to extend the indication of Arexvy to adults aged between 18 and 49 who are at "an increased risk". The jab is currently approved in the US for the prevention of respiratory tract disease caused by RSV in adults aged 60 and older, and for those aged 50-59 who are most at risk. "A regulatory decision by the FDA on this submission is expected in H1 2026. GSK is continuing to seek expanded indications for its RSV vaccine in other geographies including in the European Economic Area and Japan," GSK said.
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COMPANIES - FTSE 250
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Primary Health Properties said its possible acquisition of Assura has received regulatory backing in Ireland. The deal got "foreign direct investment", meeting the "Irish regulatory condition" connected with the acquisition, the investor in primary healthcare premises said. In June, healthcare property investor and developer Assura recommended a cash and shares offer from peer Primary Health. Assura shareholders would receive 0.3865 new Primary Health Properties shares and 12.5 pence in cash. In addition, Assura shareholders would be entitled to receive a special dividend of 0.84p per Assura share. Based on the PHP closing price on the trading day prior to that announcement, the deal valued Assura shares at 53.3p each. That was a premium of 5.8% to the value of the best and final cash offer of 50.42p per Assura share, made by Sana Bidco, a consortium made up of Kohlberg Kravis Robert & Co and property investor Stonepeak Partners. In addition, Assura shareholders were entitled to a pair of quarterly dividends of 0.84p each. That meant that the PHP bid, in addition to the special and quarterly dividends, valued Assura's issued and to be issued share capital and GBP1.79 billion.
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OTHER COMPANIES
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South32 warned of "increased uncertainty" over the electricity supply at its Mozal aluminium smelter in Mozambique. The minerals and metals producer cautioned that it expects to book an impairment in its results for the year ended June 30. Most of the electricity for Mozal has been generated in Mozambique by a hydro-electric power generator majority owned by the government there. When the generator is unable to meet all of Mozal's needs, South African state-owned electricity producer Eskom steps in. South32 said it has been working with Eskom, the hydro-electric power generator and the government of Mozambique to "secure electricity supply to Mozal beyond March 2026". "To date, Mozal has been unable to agree an affordable electricity price tariff," South32 warned. Drought conditions also threaten to impact the generator's ability to produce sufficient electricity. "These factors have resulted in increased uncertainty regarding future electricity supply to Mozal," the company added. "We are assessing the carrying value of Mozal given the increased uncertainty regarding future electricity supply and expect to recognise an impairment expense in our FY25 results. We will provide the quantum of the impairment expense when this assessment is completed." Output guidance at the asset for the current financial year is under review.
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Pri0r1ty Intelligence reported a "potential breach" of a lock-in agreement by fellow AIM listing and former investor in the company Primorus Investments. The software company, which focuses on artificial intelligence and growth services for small to medium enterprises, renamed itself from Alteration Earth and joined AIM from the Main Market in December. It said that Primorus entered into a 12-month lock-in period from the date of the AIM admission, on December 30. Save for "limited circumstances" Primorus Investments "agreed not to dispose of ordinary shares in the capital of the company" during the lock-up, Pri0r1ty Intelligence said. Primorus in June announced it disposed of 11.7 million Pri0r1ty shares for gross proceeds of GBP977,000. "The company no longer has a shareholding in Pri0r1ty Intelligence," Primorus said at the time. Pri0r1ty said on Monday: "The company and its advisers are continuing to investigate the circumstances surrounding Primorus Investments PLC's disposal of its shareholding in the company and in that context the company announces that it has sent a letter of claim to Primorus Investments PLC reserving its rights to commence legal proceedings against that entity seeking appropriate relief. The company awaits a substantive response from Primorus Investments PLC and will decide on next steps when it has received and considered that response."
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By Eric Cunha, Alliance News news editor
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Related Shares:
International AirlinesGlaxosmithklineDCCSouth32AssuraPrimary HealthPri0r1ty IntPrimorus Inv.