M&A is back for London-listed firms, with private equity firms out in force. This morning we got an update from Middle Eastern credit card processor Network International on the size of an offer proposal from a consortium including CVC. Scottish engineering firm Wood Group also updated markets on its artful dodging of Apollo, saying it has finally relented to engage with its suitor.
(Bloomberg) — M&A is back for London-listed firms, with private equity firms out in force. This morning we got an update from Middle Eastern credit card processor Network International on the size of an offer proposal from a consortium including CVC. Scottish engineering firm Wood Group also updated markets on its artful dodging of Apollo, saying it has finally relented to engage with its suitor.
Here’s the key business news from London this morning:
In The City
Network International Holdings Plc: The Middle Eastern credit card processor received a non-binding proposal from CVC Advisers and Francisco Partners regarding a possible cash offer of 387 pence per share. The price represents a 27.7% premium to Network’s closing share price on April 14 and values the company at about £2.06 billion.
- Bloomberg reported on Sunday that the consortium had been discussing a potential offer of around 380 pence a share and that Network had been seeking an offer closer to 400 pence a share
John Wood Group Plc: The company decided to engage with Apollo Global Management Inc. to see whether a firm offer can be made for the Scottish engineering firm.
- Apollo earlier this month submitted a final £1.66 billion proposal for Wood, which had already spurned four takeover approaches from the private equity firm
- The date by which Apollo is required to announce a firm intention to bid has been extended to May 17
Ashmore Group Plc: The asset manager recorded its seventh straight quarter of outflows as the emerging markets specialist struggles to contain a client exodus that has cost it tens of billions of dollars in assets.
- Clients pulled $1.1 billion in the three months through March, while overall assets under management rose as performance gains of $1.6 billion in the period offset outflows
In Westminster
Rishi Sunak is expected to receive a boost this week as inflation slips back into single digits, raising hopes that the quickest series of interest-rate increases in three decades is coming to an end. More than half of economists in a Bloomberg News survey now think the Bank of England will refrain from raising its key rate again. Figures this week are expected to show inflation dipping below 10% for the first time since August and a cooling in the red-hot labour market.
Later today, the prime minister will criticise an “anti-maths mindset” that he says is holding back the British economy. In a speech in London, Sunak will say that numeracy is “every bit as essential as reading” and take aim at a “cultural sense that it’s ok to be bad at maths,” according to extracts released by his office.
In Case You Missed It
Teck Resources Ltd. should entertain offers from potential suitors only after it completes the spinoff of its coal assets, according to Norman Keevil, the Canadian miner’s chairman emeritus and controlling shareholder. The 85-year-old magnate delivered his clearest public message to date on how he views the company’s future, as it fights to block an unsolicited $23 billion takeover proposal from Glencore Plc and proceed with its own breakup plan.
The UK’s biggest aviation companies are asking the government for more support to stimulate local production of sustainable aviation fuel in order to meet a goal of reaching net-zero carbon emissions by 2050.
Looking Ahead
EasyJet Plc’s first-half update will be in focus tomorrow. The airline should benefit from travellers trading down during the cost-of-living squeeze, says Bloomberg Intelligence’s Conroy Gaynor. At the same time, EasyJet needs to do more to bring down its own costs, which are higher than those of low-budget peers Ryanair Holdings Plc and Wizz Air Holdings Plc. Barclays analysts recently upgraded the stock to overweight, saying they expect European airlines to have performed well through the quarter and to remain “very confident about trading into summer 2023.”
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