Equities have regained some poise overnight, helped by a positive showing from the US markets on the back of supportive Federal Reserve comments and a stabilising oil price, allowing traders to brush off Greek election results going against the pro-EU government. Click here for The Trader Nicole Elliott’s take on the markets.
IC TIP UPDATES:
Simon Thompson Bargain Shares pick Fortune Oil (FTO) has attracted a takeover offer from a consortium, known as Fortune Dynasty, which already owns almost 57 per cent of the company. The offer is pitched at 10p a share plus a contingent value share note which could pay out a further 5p in the event of the sale of a significant proportion of Fortune Oil or China Gas’ shares in China Gas Holdings in the next 12 months.
Galliford Try’s (GFRD) Integrated Solutions business has been appointed to the Ministry of Defence’s Next Generation programme for capital works in Scotland. The four year framework could be worth up to £250m. Buy.
NewRiver Retail (NRR) has agreed to acquire the Sands portfolio, which includes a shopping centre in Morecambe and five UK high street assets for a total of £19m. The assets were last sold separately for an aggregate £40m between 2005 and 2007 and are being sold by a distressed seller. We keep our buy rating.
KEY STORIES:
London Stock Exchange (LSE) has updated on decent trading over the first 11 months of the year during which £41bn was raised, up from £26.7m last year with 193 new issues compared with 140 in the same period in 2013. UK equity trading volumes rose by 12 per cent and fixed income cash markets by 35 per cent.
Balfour Beatty (BBY) has reached financial close on the acquisition of the Thanet offshore transmission project in which the company will invest £20m of equity. The project connects the offshore 300MW Thanet wind farm with the grid.
Severfield (SFR) reports £43m worth of contract wins including a flagship contract to provide the steelworks for the expansion of Liverpool Football Club’s Anfield ground.
OTHER COMPANY NEWS:
Real Good Food’s (RGD) half year results were held back by a pricing dispute between its Napier Brown sugar business and British Sugar which meant revenues dipped and the company recorded losses of just shy of £3m. But stripping out the Napier Brown and Garrett Ingredients businesses, the rest of the business performed positively. Trading in October and November is reported to have been ahead of last year.
Industrial property specialist Hansteen (HSTN) has announced the sale of 11 UK industrial assets from the Ashtenne fund in which it holds a 36.7 per cent stake. The assets were sold in three separate transactions for a combined £43.9m.
Incadea (INCA), which provides software and services to the global automotive industry, has attracted a 190p a share offer from Dealertrack Technologies which values the entire business at £121.6m.
Solo Oil (SOLO) says that partner Aminex (AEX) has updated its internal estimates of resources in place at the Rovuma Petroleum Sharing Contract offshore Tanzania from 2.3 trillion standard cubic feet to 3.2 trillion standard cubic feet. Solo has a 25 per cent interest in the contract.
