Alibaba's Ma steps down
Jack Ma, founder of Alibaba, China’s most valuable company, ended speculation this week by confirming he would step down from his role as chairman. Mr Ma will be replaced by Daniel Zhang, who will add the role to his current position as chief executive. Mr Zhang is taking the reins at a time when margins are coming under pressure from the tech giant’s pivot to 'new retail', which has required increased spending on a physical estate with longer lead times than its digital operations. Founded by Mr Ma 19 years ago in his apartment, Alibaba’s market value now stands at just over $408bn.
Unilever investors to vote
FTSE 100 exit
Unilever (ULVR) shareholders gained further clarity over the consumer goods giant’s plans to move its headquarters to Rotterdam, after it published the shareholder prospectus. Shares in the new, single holding company will still be listed on London’s main market, as well as Euronext in Amsterdam and the New York Stock Exchange. However, they will not remain in the FTSE 100 index, if the proposals are passed via two separate shareholder votes on 25 and 26 October. Some fund managers have expressed concerns about the move, as it could affect whether they can still hold Unilever as part of their mandate.
Burford's challenger
Vannin plans IPO
Is wonder stock Burford Capital (BUR) about to have some competition for investors wanting to tap into the burgeoning litigation finance market? Vannin Capital has announced its intention to list on the main market of the London Stock Exchange, via the issue of £70m in new share capital and a partial sale by existing shareholders. Part of the net proceeds will be used to repay a £27.2m shareholder loan note to Litigation Funding, owned by co-founder Dan Craddock. Admission is expected to take place in October. Alongside the offer, Vannin announced it had appointed former Allen & Overy managing partner David Morley as chairman.
End is nigh
Sky for sealed bids
Sky’s (SKY) takeover saga will soon be settled almost two years after Rupert Murdoch tried to buy the 61 per cent of the broadcasting group he did not already own. A competitive sealed bids auction – administered by the Takeover Panel – will take place unless there is a best and final offer for Sky by 22 September. Comcast’s £14.75-a-share offer is the highest on the table, versus Twenty First Century Fox’s £14 bid. However, with Sky’s shares trading at £15.45 at the time of going to press, it looks as though shareholders are anticipating a higher offer still.
Packaged up
RPC takeover mooted
Consolidation within the packaging industry intensified as RPC (RPC) confirmed Bloomberg reports that it was in early-stage talks with private equity groups Bain Capital and Apollo Global Management over a potential takeover. The packaging specialist has pursued a vociferous acquisition strategy in recent years, which has helped more than double revenue during the past three years alone. However, the group has faced criticism – most notably from asset management Northern Trust – that the spate of bolt-on purchases served to mask disappointing capital returns and free cash flow. Both companies have until 8 October to announce their intention to make a firm offer for the group or walkaway.
Risers and fallers (%)
| KAINOS GROUP | 17.81 |
| RPC GROUP | 16.78 |
| CONNECT GROUP | 15.43 |
| CONVATEC GROUP | 11.58 |
| FIRST GROUP | 11.51 |
| SIRIUS MINERALS | -22.38 |
| JUST GROUP | -15.8 |
| WEIR GROUP | -14.84 |
| PETROPAVLOVSK | -14.81 |
| ENQUEST | -14.02 |
Week to 11 September 2018
Carney sits tight
Tenure extended
Following his appearance before the Treasury Select Committee last week, Bank of England governor Mark Carney confirmed that he would remain in his position until the end of January 2020, extending his tenure by seven months longer than planned. Mr Carney said he was “willing to do whatever I can to promote both a successful Brexit and an effective transition at the Bank of England”. Mr Carney’s latest extension is his second since he took over from Mervyn King in 2013, when he agreed a five-year term with the option of extending for another three.
Sports Direct feels heat
Chairman resigns
News that the High Court had ordered Sports Direct (SPD) to hand over documents relating to the Financial Reporting Council’s (FRC) investigation into its auditor, Grant Thornton, drove the shares down 6 per cent on the day. The FRC launched an investigation into the auditor after it was revealed in 2016 that it had signed off a contentious business arrangement between the sportswear chain and Barlin Delivery, a company owned by chief executive Mike Ashley’s brother, John. While Sports Direct said in a statement it was not the subject of the investigation, it added that it had “obtained leave to appeal certain aspects of the judgement from the judge, and intends to appeal additional aspects of the judgement in due course”. That came just a day before chairman Keith Hellawell resigned following pressure from activist investor Glass Lewis.
