Market Tracker weekly round-up—15 February 2019

15 Feb 2019 | 6 min read

Weekly round-up of the latest corporate announcements, including a strategic review by Stride Gaming plc, secondary offers by Segro plc and WANdisco plc, a reorgnisation by Cabot Energy plc, joint ventures by HomeServe plc and Mitsubishi Corporation, Renalytix AI plc and AKESOgen, and CYBG plc and Salary Finance Limited, a delisting of Halosource Corporation plc, a Class 1 transaction under the Listing Rules by Petropavlovsk plc, 4 returns of value to shareholders, and 6 AGM notices.

The weekly round-up covers all deals announced within our statement of scope until 12 noon on the Friday of the previous week. Any deals announced after this time will be included in the following day's round-up.

All transactions covered in this update are available on the Market Tracker deal analysis tool containing over 4,700 public company deal summaries.

The Market Tracker weekly bulletin looks in more detail at the latest transaction developments, mini trends and analysis of corporate deal documents. For trend reports and other analysis see our Trend Reports subtopic.

New deals (and AGMs) announced:

AGMs

Announcement dateCompanyIndustry sectorKey information
15 February 2019Millennium & Copthorne plcTravel, Hospitality, Leisure & TourismMillennium & Copthorne announced that its 2019 AGM will be held on 19 May 2019.
15 February 2019The Royal Bank of Scotland Group plcFinancial ServicesThe Royal Bank of Scotland Groupannounced that its 2019 AGM will be held on 25 April 2019.
14 February 2019ConvaTec Group plcHealthcareConvaTec has announced that its 2019 AGM will be held on 9 May 2019.
14 February 2019Microfocus International plcFinancial ServicesMicrofocus International has announced that its 2019 AGM will be held on 29 March 2019.
14 February 2019Whitbread plcTravel, Hospitality, Leisure & TourismWhitbread has announced that its 2019 AGM will be held on 19 June 2019.
12 February 2019Blue Prism Group plcComputing & ITBlue Prism Group has announced that its 2019 AGM will be held on 19 March 2019.

Capital reorganisations

Announcement dateCompanyIndustry sectorKey information
12 February 2019Cabot Energy plcOil & GasCabot Energy has announced a share capital reorganisation, whereby every 100 existing ordinary shares in the company will be consolidated into 1 new ordinary share. The company has also announced a proposed subscription and open offer to raise up to £2,852,899. As a result of the capital raising, the directors feel the company’s enlarged issued share capital would be much higher than similar sized AIM companies, and that this would negatively affect investors’ perception of the company. Through undertaking the share consolidation, the directors intend to raise the company’s share price and decrease the spread between the bid and offer prices.
The share capital reorganisation is subject to shareholder approval at the company’s forthcoming GM on 1 March 2019.

Delistings

Announcement dateCompanyIndustry sectorKey information
14 February 2019Halosource Corporation plcChemicalsHalosource announced its proposed delisting from AIM. The company stated that it has been unsuccessful in seeking additional funding to continue as a going concern. The company has sought to dispose of its assets in a manner that will allow it to settle amounts outstanding with creditors and effect a wind down of the business and the cancellation of its shares from trading on AIM.
It is expected the company’s shares will be cancelled from trading on 12 March 2019.

Joint ventures

Announcement dateDealIndustry sectorKey information
14 February 2019HomeServe plc and Mitsubishi CorporationProfessional ServicesHomeServe announced that it had signed an agreement with Mitsubishi Corporation to establish a joint venture in Japan. The joint venture will be called HomeServe Japan Corporation and will be 50:50 owned by HomeServe and Mitsubishi Corporation. HomeServe Japan Corporation will build a business to provide home emergency and repair services in electrics, plumbing, gas, heating, ventilation and air conditioning. The business will be based on a membership model, and will also offer on-demand services to residential customers.
13 February 2019Renalytix AI plc and AKESOgenHealthcareRenalytix AI has announced the completion of a joint venture partnership agreement with AKESOgen, an industry-leading commercial laboratory facility and provider of clinical trial precision medicine services located in Atlanta, Georgia. 
The joint venture, named RENX AI Labs, LLC, will provide services directly to health systems and pharmaceutical companies located in all regions of the United States.
12 February 2019CYBG plc and Salary Finance Limited Banking & FinanceCYBG has announced that Clydesdale Bank plc, a wholly owned subsidiary of CYBG, has entered into a joint venture with Salary Finance Limited to expand CYBG's personal lending business.
Salary Finance is an innovative FinTech platform that connects to the payroll of participating employers to provide financial wellbeing benefits to employees, including salary-deducted savings, and loans, as well as financial education.
Clydesdale and Salary Finance will each acquire a 50% stake in the JV, in return for an initial cash consideration of £0.5m each. Clydesdale will provide a 6-month rolling credit facility to the JV, subject to ongoing fulfilment of the JV's business plan. The debt funding provided by Clydesdale under the credit facility will be for an initial total commitment of approximately £100m, and may increase, subject to approval of the JV's total funding requirement by both Clydesdale and Salary Finance. 
Salary Finance will provide the JV with all of the services required for its business, including loan origination and management, marketing, cash management and other corporate services. 

LR/AIM Rules transactions

Announcement dateCompanyIndustry sectorKey information
15 February 2019Petropavlovsk plcFinancial ServicesPetropavlovsk announced a Class 1 transaction under the Listing Rules.

Returns of value to shareholders

Announcement dateCompanyIndustry sectorKey information
15 February 2019The Royal Bank of Scotland Group plcFinancial ServicesThe Royal Bank of Scotland Group has announced a special dividend of 7.5p per ordinary share
The special dividend is recommended by the directors and is subject to shareholder approval at the AGM on 25 April 2019. If approved, payment will be made on 30 April 2019.
14 February 2019Microfocus International plcFinancial ServicesMicrofocus International has announced it is continuing its buy back programme of Micro Focus ordinary shares. The extended programme instructs Citigroup Global Markets Limited to purchase an additional tranche of ordinary shares to a total value of up to £90 million taking the total buy back to £490 million.
14 February 2019Whitbread plcTravel, Hospitality, Leisure & TourismWhitbread has announced that it intends to return at least £2.5 billion to shareholders. The company began an initial share buyback programme in January 2019, which seeks to repurchase up to £500 million of shares by the end of April 2019.
8 February 2019Smith & Nephew plcHealthcareSmith & Nephew has announced the commencement of its quarterly share buyback programme. The company intends to repurchase up to 975,682 of its ordinary shares. The maximum pecuniary amount allocated to the programme is £16 million. The purpose of the programme is to reduce the share capital of the company in order to keep it broadly constant. Smith & Nephew intends to hold the repurchased shares in treasury, and then cancel them.

Secondary offers

Announcement dateIssuerIndustry sectorKey information
15 February 2019Segro plcPropertySegro announced a placing to raise approximately £450 million of gross proceeds to fund Segro’s pipeline of development opportunities.
14 February 2019WANdisco plcComputing & ITWANdisco announced the subscription of 2,489,499 ordinary shares in the company by existing shareholders at a price of 546 pence per share.
Admission of the shares to trading will be on 29 February 2019.

Takeovers

Announcement dateDealIndustry sectorKey information
11 February 2019Stride Gaming plcTravel, Hospitality, Leisure & TourismStride Gaming announced that it is currently reviewing all strategic options in order to maximise value for its shareholders.Stride Gaming is considered to be in an offer period.

 

Area of Interest