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- š Another UK PLC Looks Set To Go Private
š Another UK PLC Looks Set To Go Private
Listed technology business Kape got a final offer from Teddy Sagi, Deliveroo revenues remained robust despite falling orders, Virgin Media O2 looks to raise funds with tower sale and thereās another potential private equity bid incoming.
Good morning. In todayās update - listed technology business Kape got a final offer from Teddy Sagi, Deliveroo sales remained robust despite falling orders, Virgin Media O2 looks to raise funds with a sale of its UK tower business and thereās another potential private equity bid incoming.
Markets
A mixed trading day for UK equities on Thursday as the FTSE 100 closed (very) marginally ahead, whilst the FTSE 250 (-0.3%) dropped for the second day running. Miners were on the back foot as metal prices fell and Rio Tinto (-1.6%) gave a mixed update to markets, cutting its copper output forecast after issues at US and Chilean units.
Top Stories
š Sagi submitted a final bid for Kape Technologies
Unikmind, the investment firm led by billionaire Playtech founder Teddy Sagi, had upped its bid for UKās Kape Technologies in a final offer for the business. The offer was increased from $3.44 to $3.60 - equivalent to about Ā£2.90 - valuing the entire business at just shy of $1.6bn. The latest offer represents an 26.5% premium on the share price prior to any offer announcement. Despite the increase, Kapeās directors are refusing to budge - the boardās response noted the final offer still āundervaluedā Kape. Sagi now owns around 67% of Kape shares and therefore only requires an extra 3% to finalise the deal. (Unikmind, Kape response)
šµ Revenue resilient at Deliveroo despite fall in orders
The cost of living crisis hit demand at Deliveroo as order numbers dropped 9% in Q1 compared to last year. A rise in the price of the average order wasnāt enough to offset the impact on gross transaction value (total value of orders), which dropped 1% over the same period. Despite this, revenue remained āresilientā, ticking up 4% due to a mix of increased advertising revenue and āfee optimisationā. (Official)
š Virgin Media O2 kicks off UK tower exit
In a bid to raise funds for its fibre broadband rollout, the group is looking to exit part or all of its stake in Cornerstone - the largest tower infrastructure business in the UK. Cornerstone are thought to be worth in the region of Ā£3bn, therefore a sale of Virgin Media O2ās 50% stake could raise around Ā£1.5bn. The group are currently looking at selling half their stake, but could be tempted to part with the whole chunk. Goldman Sachs and JP Morgan are advising.
š Sureserve set to become latest London-listed PE target
Sky reported that social housing energy services provider Surserve is set to announce a Ā£200m offer from French firm Cap10 on Friday, becoming the latest London-listed company to be targeted by private equity funds awash with dry powder. An offer at Ā£200m would represent a reasonable premium for shareholders, with Sureserve closing Thursday evening at a market value of around Ā£145m.
What Else Happened?
Economics / Politics / General
The FCA has ordered Link Fund Solutions, administrator of the stricken Woodford Equity Income Fund that was wound up in 2020, to repay Ā£235m to investors over Linkās ācritical mistakesā in managing the fundās liquidity. (FCA)
In a turnaround of strategy, Meta is planning to cut/relocate the majority of Instagramās London-based staff to New York.
Another twist in the CBI saga - the troubled business industry group reportedly gave new information to police on Thursday regarding a āserious criminal offenceā.
Deals
A setback for the London Stock Exchange - shares of Dowlais (the spinout of engineering giant GKNās automotive unit) dropped 20% on its first day of trading.
Holiday Extras - the travel ancillaries business who provide insurance, airport hotels and parking - are rumoured to be planning an IPO in London, valued at around Ā£100m.
Thursdayās top VC deals - Evermile, a delivery management platform for small businesses, raised $6m in seed funding; MetaGravity, a metaverse infrastructure developer, raised a $9.5m seed round; UK-based medicine delivery platform Pharmacierge raised Ā£2.4m (the majority of which came from private clinicians and app users).
Company News / Trading Updates
FTSE 100 consumer healthcare group Haleon (a spinout from GSK) gave an upbeat trading update to markets - the company now forecasts revenue growth at the top end of its guidance range - shares closed just shy of +3%. (Official)
Investment platform AJ Bell saw shares finish 2.7% higher despite recording a drop in Q2 net inflows compared to the previous year, as the company continued to grow both customer numbers and assets under management. (Official)
š Global Snapshot
Nokia shares sank 8% on Thursday after reporting disappointing Q1 financials; the telecoms business missed market expectations to post operating profits of ā¬479m (vs analyst forecasts of ā¬532m).
Recession risk in the US was potentially heightened on Thursday as weekly unemployment claims rose more than expected, to 245k.
In a further setback for BuzzFeed, the digital media business announced it would be cutting its news division and trimming its overall workforce by 15%; shares closed down 19.7%.
Blackstone to the rescue - the private equity giant is in talks with regional banks in the US about partnering with them to provide credit, in the wake of recent deposit outflows.
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