SoftBank to the rescue
WeWork founder out
SoftBank announced a new $9.5bn (£7.4bn) rescue package for WeWork, the floundering office space disrupter, which abandoned its plans to go public and has since seen its valuation plummet. SoftBank’s commitment includes $5bn in new financing and the launching of a tender offer of up to $3bn for existing shareholders – it will also speed up an existing $1.5bn funding commitment. “SoftBank has decided to double down on the company by providing a significant capital infusion and operational support,” confirmed Masayoshi Son, SoftBank’s chairman and chief executive officer. WeWork founder Adam Neumann will surrender the voting rights to his shares, but will remain a board observer.
Ofgem flexes muscles
Suppliers face tougher checks
With last month’s collapse of Eversmart Energy marking the sixth energy supplier to go bust this year, Ofgem is considering introducing new tests to ensure “more responsible and appropriate behaviour”. Under the proposed reforms, growing suppliers could be prevented from taking on further customers if they fail to demonstrate they can effectively serve their existing customer base. The regulator would also have the power to request independent audits to assess suppliers’ customer service operations and financial health. Currently at the consultation stage, the watchdog is looking to implement its proposals before the end of next summer.
DNEG set to list
November admission expected
DNEG – a leading digital visual effects, animation and stereo conversion company for feature film and TV – has confirmed its intention to float on the London Stock Exchange. This followed an ‘expected intention’ announcement on 15 October. DNEG’s customers include the likes of 21st Century Fox and Disney (US:DIS). The IPO offer price will be determined after a book-building process, with admission expected in November. The offer will comprise newly issued shares (raising expected gross proceeds of £150m) and existing shares sold by shareholders, directors and employees. DNEG’s total income (revenue plus other operating income) was $309m for the year to March 2019.
Green number plates
Government consults
The government has opened a consultation on the introduction of green number plates for ultra-low-emission vehicles (ULEVs) as it seeks to help road users and authorities identify cleaner vehicles. The Department for Transport (DfT) said that it was keen “normalise the idea of clean vehicles on our roads, encouraging a shift to cleaner vehicles” and “help local authorities to identify ULEVs and bring in local incentives for electric vehicles”. The consultation, which closes on 14 January 2020, follows the government’s ‘Road to Zero’ strategy, which it hopes will help the UK achieve its ambition that all new cars and vans will be effectively zero emission by 2040.
Energy switchers rise
Up a tenth
Trade body Energy UK revealed that 603,400 customers moved to a new energy supplier last month, which represents a 10 per cent rise on September 2018. The increase in switchers lifts the total number of electricity switches to 4,741,454 so far this year, which is up 11 per cent on the same time last year – when a record 5.8m customers switched their energy supplier. Lawrence Slade, chief executive at Energy UK, said: “It is brilliant to see that every month more and more consumers reap the benefits of increased competition.”
Under Armour replaces CEO
Founder gets new role
American sportswear giant Under Armour (US:UA) announced that its founder, Kevin Plank, will become executive chairman and brand chief, creating space for its president and chief operating officer Patrik Frisk to succeed Mr Plank as the company’s new chief executive officer on 1 January 2020. Mr Plank has served as chairman and CEO since establishing Under Armour in Maryland in 1996, while his successor joined the business in 2017 – Mr Frisk will retain his title of president. Under Armour has encountered headwinds in North America this year, reporting quarterly low-single-digit revenue declines in the region.
GSK sells vaccines
Bags €1bn
GlaxoSmithKline (GSK) sold two vaccines to Danish biotechnology company Bavarian Nordic for €955m (£822m) as the pharmaceutical giant seeks to increase its focus on its key growth areas and commit resources towards research and development. GSK is selling travel vaccines Rabipur and Encepur, which are used to prevent rabies and tick-born encephalitis, respectively – it acquired these brands from Novartis in 2015. GSK will receive an upfront payment of €301m and milestone payments of €495m, along with the proceeds from the sale of inventory worth around €159m, bringing the total proceeds of the deal to nearly €1bn.
Sterling embarked on a rapid series of swings this week, as prime minister Boris Johnson attempted to win parliamentary support for the UK’s exit from the EU by the end of the month.
The pound reached its highest level since May – reaching $1.298 against the greenback – after MPs backed Mr Johnson’s deal with the EU, the first time parliament has backed a withdrawal deal. However, those gains were pared back slightly after MPs voted against proposals for an accelerated Brexit timetable.
