TIP UPDATES:
Rathbone Brothers (RAT) has confirmed press speculation over its potential all-share merger with Smith & Williamson. The latter offers investment, accountancy and tax planning services. Shares in Rathbones were up slightly during early morning trading. Buy.
St Modwen’s (SMP) joint venture with Vinci has sold its interest in its 10-acre Nine Elms Square site. Shares in the property developer were up 2 per cent during early trading. Buy.
Shares in video game developer Frontier Developments (FDEV) are up 16 per cent in early trading following an announcement the group will launch a game based on the film franchise Jurassic World in Summer 2018. The share price jump comes less than a month after Chinese tech Giant Tencent bought a 9 per cent stake in the group. Buy.
Shaftesbury (SHB) has entered into a contract with PMB Holdings to acquire a long-leasehold interest in 90-104 Berwick Street, Soho for £38.5m. The property is currently being redeveloped to provide 12,500 sq. ft of retail, a 5,500 sq. ft. supermarket, a 2,000 sq. ft. restaurant and a 110 bedroom hotel. Both the hotel and supermarket have been pre-let. The redevelopment is expected to complete in 2018. Buy.
Ophir Energy (OPHR), together with its partners in the Fortuna development, have selected commodity trading outfit Gunvor as its preferred buyer of the project’s LNG. Under the terms of the principle commercial agreement, Gunvor will buy 2.2mmtpa (million metric tonnes a year) on a Brent-linked basis for 10 years, leaving a third of capacity to be marketed elsewhere. The shares are up 10 per cent today, but flat on our buy call, which is under review.
KEY STORIES:
About a month after Eco Animal Health Group (EAH) received marketing authorisation for its Aivlosin product in the US from the Centre of Veterinary Medicine of the Food & Drug Administration, the animal pharmaceutical products company has received a marketing authorisation from the Drug Authority of the Ministry of Health of Egypt for the use of Aivlosin in chickens laying eggs for human consumption.
Shareholders in Jimmy Choo (CHOO) have until 14 September to vote on the terms and conditions of the takeover by Michael Kors. The deal values Jimmy Choo at £896m, or 230p per share that would be paid in cash. This is a 36.5 per cent premium to the 168.5p that shares closed at on the day Jimmy Choo announced it was up for sale. Shares were flat in early trading.
OTHER COMPANY NEWS:
Shares in Global Ports (GPH) fell more than 8 per cent in early trading, after the operator of cruise and commercial ports reported a fall in sales and pre-tax losses of $6.53m in the first half - greater than the $2.3m loss seen in the first six months of 2016. These are the first set of results to be released by the company since it listed in May 2017. Management cited a loss of passenger volume in higher margin Turkish ports as a contributor to lower cruise revenues and passenger yields. An interim dividend of 21.6p was announced.
Shares in Kosmos Energy (KOS) started trading on London’s main market this morning, after the Atlantic Margin-focused oil and gas explorer completed its secondary listing. The company, which has a $2.5bn market capitalisation in New York, made a net loss of $284m in 2016, on total revenues of $385m.
Total (Fr:FP) has bought AP Moller-Maersk’s (APMM) oil and gas division in a deal worth $7.45bn, in one of the largest deals in the energy sector since oil prices sank three years ago. Under the terms of the transaction, Total will award APMM $5bn of shares, with the remainder paid for in cash raised through short-term debt financing. The French oil major will also take over all of Maersk Oil’s $2.9bn of decommissioning obligations.
