Market Tracker weekly round-up—6 July 2018

06 Jul 2018 | 7 min read

Market Tracker weekly round-up—6 July 2018

Weekly round-up of the latest corporate announcements, including a recommended offer by Kerridge Commercial Systems Group Limited for Electronic Data Processing plc and an all-cash offer by Stafford Capital Partners Limited for Phaunos Timber Fund Limited, possible offers by China Grand Enterprises, Inc. and its affiliate company Huadong Medicine Co. for Sinclair Pharma plc, by Consort Medical plc for Carclo plc and by Volcan Investments Limited for Vendata Resources plc, IPOs by Nucleus Financial Group and Kropz plc, secondary offers by Ceres Power Holdings plc, Sound Energy plc, Bigblu Broadband plc and Savvanh Resources plc, a joint venture between Modern Water plc and Hangzhou Shangtuo Environmental Technology Co. Ltd, returns of value by Glencore plc, by Superdry plc and AA plc, a related party transaction by Ceres Power Holdings plc, a Class 1 transaction by Micro Focus International plc and AGM notices from Majestic Wine plc, Superdry and Auto Trader Group plc.
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.The information contained in the weekly round up is republished in the monthly round up at the end of the month. The Market Tracker monthly round-up—June 2018 is currently available. To access previous monthly round ups please visit the Monthly deal round-ups archive.All transactions covered in this update are available on the Market Tracker deal analysis tool containing over 3000 public company deal summaries.

For trend reports and other analysis see our Trend Reports subtopic.

New deals (and AGMs) announced:

AGMs

Announcement date Company Industry sector Key information
6 July 2018 Majestic Wine plc Retail & wholesale trade Majestic Wine announced that its 2018 AGM will be held on 8 August 2018.
5 July 2018 Superdry plc Retail & wholesale trade Superdry announced that its 2018 AGM will be held on 11 September 2018.
2 July 2018 Auto Trader Group plc Media & telecommunications Auto Trader Group has announced that its 2018 AGM will be held on 20 September 2018.

IPOs

Announcement date Issuer Industry sector Key information
2 July 2018 Nucleus Financial Group Financial services Nucleus announced its intention to apply for admission of its ordinary shares to trading on AIM.
Nucleus’ first day of dealings is expected to commence in late July 2018.
2 July 2018 Kropz plc Mining, metals & extraction Kropz announced its intention to apply for admission of its ordinary shares to trading on AIM.
Kropz’s first day of dealings is expected to commence in the second half of 2018.

Joint ventures

Announcement date Deal Industry sector Key information
5 July 2018 Modern Water plc and Hangzhou Shangtuo Environmental Technology Co. Ltd Energy & utilities Modern Water has announced that it has entered into a proposed joint venture with Chinese company Hangzhou Shangtuo Environmental Technology Co. Ltd. (trading as Sunup).
The joint venture company, Encyclo Water Technology (Zhejiang) Co., Ltd (Encyclo), will promote Modern Water's innovative and proprietary brine concentration technology, the AMBC, throughout China.
Modern Water and Sunup will have respective equity interests of 49% and 51% in Encyclo, for which they will initially subscribe approximately US$80,000 each within 3 months of the grant of the business licence.

LR/AIM Rules transactions

Announcement date Company Industry sector Key information
4 July 2018 Ceres Power Holdings plc Energy & utilities Ceres Power has announced a related party transaction under the AIM Rules.
2 July 2018 Micro Focus International plc Computing & IT Micro Focus International has announced a Class 1 transaction under the Listing Rules.

Returns of value to shareholders

Announcement date Company Industry sector Key information
5 July 2018 Glencore plc Mining, metals & extraction Glencore announced that it commenced a share repurchase or buy-back programme of up to USD1 billion.The Company has entered into an agreement with Citigroup Global Markets Limited to conduct the programme, which will be implemented in two stages.
The maximum aggregate consideration that may be paid for shares is £350 million.
5 July 2018 Superdry plc Retail & wholesale trade Superdry announced a special dividend of 25 pence per share as a result of continued strong cash generation.
2 July 2018 AA plc Retail & wholesale trade AA announced a proposed issuance by AA Bond Co Limited of a single class of Sub-Class A7 fixed rate notes due 2024/2043 and a concurrent tender offer.
Eligible holders have been invited to tender their existing notes for purchase by AA Senior Co Limited for cash. AA Senior will accept up to £350m of the existing notes for purchase, with the actual amount communicated in the final results announcement relating to the tender offer.
The proposed refinancing will extend debt maturities and enhance credit profile.

Secondary offers

Announcement date Issuer Industry sector Key information
6 July 2018 Savannah Resources plc Professional services Savannah Resources announced a placing and subscription to raise £11.5 million through the placing of 92,535,277 new ordinary shares and commitments to subscribe for 35,811,979 ordinary shares at a placing pice of 9p per share
4 July 2018 Bigblu Broadband plc Media & telecommunications Bigblu announced the successful placing of new ordinary shares with new and existing investors, raising £12 million in gross proceeds.
4 July 2018 Ceres Power Holdings plc Energy & utilities Ceres Power announced that it has successfully completed the £20 million fundraising. The placing was conducted by way of an accelerated bookbuild.
The offer consisted of the conditional placing and subscription of 132,625,994 ordinary shares at an issue price of 15.08 per share. The offer represents 13.0% of the company’s current issue ordinary share capital.
2 July 2018 Sound Energy plc Oil & gas Sound Energy announced a placing to raise £11,432,700 in gross proceeds. The proceeds of the placing are intended to strengthen Sound Energy’s cash position as it embarks on a high impact three well exploration programme.
The placing consists of 30,829,308 new shares at a placing price of 37p per share. Admission to trading on AIM is expected on 6 July 2018.

Takeovers

Announcement date Deal Industry sector Key information
5 July 2017 Sinclair Pharma plc possible offer by China Grand Enterprises, Inc. and its affiliate company Huadong Medicine Co. Pharmaceuticals & Biotechnology Sinclair Pharma announced it received a possible offer from China Grand Enterprises, Inc. and its affiliate company Huadong Medicine Co., Ltd. The discussions of an offer being made remains in the early stages. The PUSU deadline is on 2 August 2018.
3 July 2018 Electronic Data Processing plc offer by Kerridge Commercial Systems Group Limited Computing & IT Kerridge announced, through its wholly owned subsidiary, Eagle Bidco 2018 Limited a recommended cash offer for the entire issued and to be issued ordinary share capital of Electronic Data Processing (EDP) other than the excluded shares to be effected by means of a scheme of arrangement. Kerridge has partnered with US private equity fund, Accel-KKR Company, LLC.
The firm offer values EDP at £11.85 million with a consideration of  91 pence in cash for each EDP share.
The firm offer follows from EDP’s formal sale process announced on 18 April 2016. See deal summary: Electronic Data Processing plc–formal sale process (firm offer announced)
3 July 2018 Phaunos Timber Fund Limited offer by Stafford Capital Partners Limited Investment Stafford announced an all cash offer of £184.96 million ($244.2 million) for Phaunos Timber through Stafford bidco, a company wholly-owned by Stafford International Timberland Fund VIII and ultimately controlled by Stafford. The offer is structured by way of a contractual offer.The consideration value is 0.37 pence in cash per Phaunos Timber’s shares.
The board of Phaunos Timber gave a no definitive recommendation and will post a response document within 14 days of receiving Stafford’s offer document. The response document will include an update on the asset realisation process as well as the board's views on the value of the firm offer.
The firm offer follows from Stafford’s possible offer for Phaunos announced on 5 June 2018. See deal summary: Phaunos Timber Fund Limited possible offer by Stafford Capital Partners Limited
2 July 2018 Carclo plc possible offer by Consort Medical plc Chemicals Consort Medical announced it has made a possible offer for Carclo’s entire issued and to be issued share capital. The possible offer valued each share in Carclo at 116 pence per share and the consideration was to be in the form of new shares in Consort.
The board of Carclo rejected the possible offer on 1 June 2018 and has subsequently rejected further requests from Consort for a meeting.
The PUSU deadline is on 30 July 2018.
2 July 2018 Vedanta Resources plc possible offer by Volcan Investment Limited Mining, metals & extraction Vedanta announced it received a possible recommended cash offer from its major shareholder Volcan. Volcan is a holding company beneficially wholly owned by the Anil Agarwal discretionary trust. As at the date of this announcement, Volcan holds approximately 66.53% of Vedanta's total issued share capital.
The possible offer is subjected to pre-conditions if it progressed to a firm offer.
The PUSU deadline is on 30 July 2018.

Area of Interest