23rd Aug 2019 10:31
(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Friday.
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FTSE 250 - WINNERS
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Entertainment One, up 30% at 575 pence. US toymaker Hasbro late Thursday said it had agreed to acquire the maker of the Peppa Pig children's TV show producer in an all-cash transaction valued at GBP3.3 billion. Under the terms of the agreement, Entertainment One shareholders will receive 560p in cash for each share, which represents a 31% premium to the company's 30-day volume weighted average price as of Thursday. The board of directors of Entertainment One, after consultation with its financial advisors as to the financial terms of the transaction and its legal advisors, unanimously determined that the transaction is in the best interests of the company and has recommended that Entertainment One shareholders vote in favour of the deal.
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Computacenter, up 3.5%. The IT services provider reiterated its recently-upgraded guidance for 2019 despite a marginal reduction in profit in first half. The computer services provider reported a 2.3% decline in pretax profit in the six months to the end of June to GBP50.8 million from GBP52.0 million a year earlier, despite revenue jumping by 21% to GBP2.43 billion from GBP2.00 billion. On a constant currency basis, revenue increased by 22%. Computacenter declared an interim dividend of 10.1 pence, up 16% from 8.7p paid the year prior.
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FTSE 250 - LOSERS
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Woodford Patient Capital Trust, down 6.5%. The trust noted that Link Fund Solutions, which values the portfolio of the trust, will reduce the valuation of its holding in IH Holdings International. The valuation adjustment reflects a reassessment of the current progress of the business, and is expected to hit the trust's net asset value per share by 3.4p per share. At the beginning of June, Neil Woodford took the decision to suspend withdrawals from his equity income fund due to "an increased level of redemptions", with the fund now needing time to "reposition" its portfolio invested in unquoted and less liquid stocks into more liquid investments.
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OTHER MAIN MARKET AND AIM - WINNERS
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Adept4, up 80%. The IT-as-a-service firm said it has signed non-binding heads of terms to acquire cloud technology firm Cloudcoco in an all-share deal. Adept4 anticipates issuing 218.2 million shares, around 49% of Adept4's enlarged capital, for buying Cloudcoco. The deal would not be considered a reverse takeover under AIM rules but would need shareholder approval. Adept4 expects that the deal will need to be condition on a waiver which would otherwise oblige Cloudcoco to make an offer for Adept4, which will also need to be approved by shareholders. At present, Adept4 has GBP5 million unsecured loan noted held by the Business Growth Fund. The fund has agreed to sell the loan notes to MXC Capital, 29.9% Adept4 shareholder, for GBP3.5 million if the Cloudcoco buy goes ahead. This would reduce Adept4's liability.
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Jersey Oil & Gas, up 17%. The oil and gas firm said it has been awarded full ownership and operatorship of an additional block within the Oil & Gas Authority's 31st supplementary offshore licensing round. The block in question is block 21/2a within the UK Continental Shelf region of the North Sea, which contains the Glenn oil discovery that is estimated to add 14 million barrels of oil equivalent in discovered mean recoverable resources. The licence in respect of Block 21/2a comprises a two-year initial term with certain firm work obligations, principally comprising geotechnical studies, with a drill or drop well obligation at the end of the term.
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OTHER MAIN MARKET AND AIM - LOSERS
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Stilo International, down 45%. The software and cloud services provider proposed cancellation of its admission on AIM, subject to shareholder approval, following a swing to loss in the first half of 2019. Under the AIM rules, it is a requirement that de-listing is approved by the requisite majority of shareholder voting, being not less than 75% of the votes cast. Subject to the resolutions approving the de-listing being passed, it is anticipated to become effective on October 8. Stilo noted that it recognises that not all shareholders of the company will be able or willing to continue to own shares following the de-listing. Subject to the tender conditions being satisfied, shareholders will, therefore, have the opportunity to tender all or some of their shares, the company noted. Under the tender offer, Stilo said it will purchase up to 14.7 million shares, representing 15% of the shares in issue, at a price of 1p per share. Stilo said it swung to pretax loss of GBP29,000 in the six months to the end of June compared to GBP42,000 profit reported a year earlier, as revenue slipped to GBP638,000 from GBP707,000.
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