16th Sep 2015 09:37
LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.
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FTSE 100 - WINNERS
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SABMiller, up 23%. The brewing giant confirmed that Anheuser-Busch InBev, the owner of Budweiser and Becks, has informed it that it intends to make a bid for SABMiller. It said no further details about the terms of such a deal have been received as yet and said it will review and respond as appropriate once further details are forthcoming. AB InBev is the world's largest brewer, with SABMiller the second largest.
Glencore, up 1.1%. The multi-commodities miner and trading house said it has raised USD2.5 billion via a share placing, part of a wider plan the group has undertaken to improve its financial position following a year plagued by commodity price falls and a slowdown in the Chinese economy. The company said it has issued 1.30 billion shares, 22% of which were subscribed for by its senior management team. The new shares represent 10% of its previous total.
Aberdeen Asset Management, up 3.3%, Burberry Group, up 2.4%. The emerging markets-focused fund manager and the luxury goods company were trading higher after Chinese shares surged at the close on Wednesday following an uncertain opening. The benchmark Shanghai Composite Index rallied in late afternoon trading Wednesday, closing up 4.9%. Aberdeen has a heavy exposure to the Chinese market in its funds, while Burberry generates a significant portion of its sales from the country.
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FTSE 100 - LOSERS
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Inmarsat, down 2.3%. The satellite communications company was downgraded to Sell from Hold by investment bank Berenberg, which also cut its target price to 870 pence from 900p. The bank said the risks involved in Inmarsat's strategy have not been priced into its shares, particularly the competitive pressures which could squeeze margins in the aviation sector and the entry of another player into part of the maritime sector.
Mondi, down 2.6%. The Anglo-South African paper and packaging company was downgraded to Sell from Neutral by Goldman Sachs, which also cut its target price to 1,300p from 1,380p.
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FTSE 250 - WINNERS
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Entertainment One, up 7.7%. Marwyn Value Investors said it has struck a deal with Canada Pension Plan Investment Board to sell its remaining 18% stake in the media company for GBP142.4 million. Marwyn will sell the stake for 269.00 pence per share. Entertainment One welcomed the deal, and the addition of the Canada Pension Plan Investment Board to its shareholder base. Marwyn Value Investors shares are up 3.8%.
Serco Group, up 1.4%. The outsourcer said it has struck a deal to sell its offshore private-sector business-process outsourcing operations to a fund managed by private equity house Blackstone for around GBP250.0 million. "This disposal will not only strengthen further our balance sheet but also enable us to focus on the group's five core markets. Overall this gives us greater financial and operational flexibility to move forward, doing what we do best," Soames added.
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FTSE 250 - LOSERS
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Galliford Try, down 1.1%. The construction and housebuilding group was trading lower, despite saying its pretax profit pushed higher in the first half as its revenue grew on the back of strong performances on both of its main divisions. Galliford said its pretax profit for year to the end of June was GBP114.0 million, up from GBP95.2 million a year earlier, as its revenue increased to GBP2.35 billion from GBP1.77 billion. Including the contribution from its joint ventures, revenue was up to GBP2.43 billion from GBP1.85 billion. Based on the results, Galliford Try raised its final dividend to 46.00 pence per share, meaning its total dividend increases to 68.00 pence, up 28% year-on-year.
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MAIN MARKET AND AIM - WINNERS
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Alkane Energy, up 41%. Balfour Beatty Infrastructure Partners, a fund in which Balfour Beatty invests, said it has agreed a deal to acquire Alkane in a deal valuing the energy company at GBP61.4 million. Balfour Beatty Infrastructure Partners, a mid-market infrastructure investment firm which operates independently of Balfour Beatty PLC, said it has agreed to pay 36 pence per share for Alkane, a 44% premium to the closing price the day before the deal was revealed. Alkane, which operates mid-sized "gas to power" electricity plants, intends to recommend the deal to its shareholders.
Copper Development, up 34%. The company said it has agreed the sale of its Philippines operating subsidiary and said the move will mean it will turn itself into an investing company. Copper Development said it will sell CDC Philippines Holdings, its wholly-owned subsidiary in the country, for USD500,000 in cash. The subsidiary owns a 93% stake in the Hinoba-an copper project, which was the original asset on Copper Development's books when it floated in London in December 2010. As a result of the sale, Copper Development will become an investing company, meaning it will now be required to make an acquisition or undertake a reverse takeover within 12 months of the upcoming meeting at which it shareholders will vote on the change of its make-up.
Galantas Gold, up 18%. The gold miner said it has received high grade gold results from its exploration programme at the Omagh gold project in Northern Ireland. Galantas said it discovered high grade boulders of 30.4 grammes of gold per tonne, 34.4 grammes of gold per tonne, 39.4 grammes of gold per tonne and 44.3 grammes of gold per tonne. "We have the opportunity to expand the known resources on Joshua and Kearney veins (the main veins) at depth. These new results mean we can also examine the possibility of a new vein within the mining area and look at southerly continuations of the main veins, which already have a strike length of around 850 metres," said Roland Phelps, president and chief executive of the company.
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MAIN MARKET AND AIM - LOSERS
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SeaEnergy, down 24%. The company, which provides strategic and technical advice and products to the oil and gas, renewable energy and other industries, said it will not meet its full-year expectations and said it expects to make an operating loss in 2015 before returning to profitability in 2016. "The company considers that it is no longer confident that it can meet its previous expectations of performance and now anticipates an operating loss for 2015 before a recovery into profitability in 2016," it said. SeaEnergy reported a GBP2.9 million pretax loss in the first six months of 2015, significantly wider than the GBP105,000 loss reported a year earlier as revenue dropped to GBP1.9 million from GBP2.5 million.
Imaginatik, down 16%. The self-styled "full-service innovation firm", which provides consultancy and technology products, said that Chairman Matt Cooper has agreed to lend it USD110,000 for its short term working capital requirements as it awaits funds from "certain clients" and to cover "minor delays" in closing out several renewal contracts.
Imagination Technologies, down 6.1%. The chipmaker said its first half revenue will come in lower than previously expected and said it is not sure this will be made up in the second, even as it expressed a degree of confidence in its medium-term outlook. It said a combination of market softness and short-term timing gaps seen in chip replacement leads Imagination to expect its revenue for the first half to the end of October to be lower than previously forecast, which will likely mean it posts a loss for the period. While the group does expect the second half to be stronger than previous guidance, due to the strength of its licensing pipeline and upcoming product launches by its partners, it said it is difficult to predict whether the second half will compensate for the first half shortfall.
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By Sam Unsted; [email protected]; @SamUAtAlliance
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