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(Alliance News) - Asset manager abrdn confirmed it is in discussions with JC Flowers & Co for a potential acquisition of online retail investment platform interactive investor.
The Financial Times on Saturday reported the FTSE 100 firm is finalising a deal to buy Manchester-based ii for GBP1.5 billion, in a bid to deepen its direct-to-consumer business, citing people with "direct knowledge of the matter".
However, abrdn said there can be no certainty that the discussions will result in a deal. It said it will make a further announcement "as and when appropriate".
Back in August, Sky News had reported that interactive investor had invited several investment banks to to propose an initial public offering in London that could value ii at up to GBP2 billion. In April, ii CEO Richard Wilson told the FT it was considering an IPO.
ii is the second largest retail investment platform in the UK after FTSE 100-listed Hargreaves Lansdown.
abrdn shares were up 0.3% early Monday.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 4.07 points, 0.1%, at 7,308.03
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Hang Seng: closed down 0.4% at 24,763.77
Nikkei 225: closed down 0.4% at 29,507.05
DJIA: closed up 203.72 points, or 0.6%, at 36,327.95
S&P 500: closed up 17.47 points, or 0.4%, at 4,697.53
Nasdaq Composite: closed up 31.28 points, or 0.2%, at 15,971.59
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EUR: flat at USD1.1559 (USD1.1550)
GBP: flat at USD1.3489 (USD1.3482)
USD: up at JPY113.59 (JPY113.47)
GOLD: up at USD1,817.05 per ounce (USD1,810.85)
OIL (Brent): up at USD83.52 a barrel (USD82.82)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Monday's Key Economic Events still to come
1100 GMT Ireland industrial production
1000 EST US employment trends index
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US President Joe Biden's administration on Sunday issued a vocal defence of a controversial Covid-19 vaccine mandate for large companies despite a court challenge that temporarily freezes the program. "The president and the administration wouldn't have put these requirements in place if they didn't think they were appropriate and necessary," Surgeon General Vivek Murthy said on ABC talk show 'This Week'. "The administration is certainly prepared to defend them." And White House Chief of Dtaff Ron Klain, citing earlier court rulings that upheld state-level mandates, said he was "quite confident" that the mandate would ultimately be upheld. The federal mandate, designed to push millions of workers at businesses with more than 100 employees into getting Covid-19 shots – or submit to weekly testing – is key to administration efforts to bring the coronavirus pandemic under control. But on Saturday, the US Court of Appeals for the Fifth Circuit said several petitioners opposing the mandate had raised "grave statutory and constitutional issues". It granted a temporary stay.
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Australia said it will sell coal for "decades into the future" after spurning a pact to phase out the polluting fossil fuel to halt catastrophic climate change. More than 40 countries pledged to eliminate coal use within decades during the COP26 UN climate summit in Glasgow, which aims to cap the warming of Earth since the Industrial Revolution to between 1.5 and 2.0 degrees Celsius. Australia, along with some other major coal users such as China and the US, did not sign up. "We have said very clearly we are not closing coal mines and we are not closing coal-fired power stations," Australian Minister for Resources Keith Pitt told national broadcaster ABC.
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BROKER RATING CHANGES
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BERNSTEIN CUTS IAG TO 'MARKET-PERFORM' (OUTPERFORM) - PRICE TARGET 180 (250) PENCE
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BERNSTEIN CUTS RYANAIR TO 'MARKET-PERFORM' (OUTPERFORM) - PRICE TARGET 18.40 (18.50) EUR
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BARCLAYS CUTS HELIOS TOWERS TO 'EQUAL WEIGHT' (OVERWEIGHT) - TARGET 160 (190) PENCE
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COMPANIES - FTSE 100
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BHP announced the sale of its 80% interest in the metallurgical coal joint venture BHP Mitsui Coal, to Stanmore SMC Holdings for up to USD1.35 billion in cash. BHP Mitsui Coal is situated in Queensland, Australia, and comprises the Poitrel and South Walker Creek operations, Red Mountain Infrastructure and the Wards Well development. Stanmore SMC is a subsidiary of Brisbane, Australia-based coal miner Stanmore Resources. The USD1.35 billion payment consideration is made up of an initial payment of USD1.1 billion, USD100 million in cash six months after the completed sale and up to USD150 million in a price-linked earnout, which will be payable in 2024. The sale is conditional on gaining regulatory approval, including from the Australia Foreign Investment Review Board. The transaction is expected to be completed in the middle of 2022, after which Stanmore will assume economic and operating control of BHP Mitsui Coal.
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JD Sports Fashion responded to a Sunday Times report, saying it "totally refuted" any breaches in corporate governance. The newspaper said that JD Sports had launched an investigation into who had covertly filmed Chair & Chief Executive Peter Cowgill meeting his counterpart at footwear retailer Footasylum, Barry Bown, in a possible breach of competition rules. Last week, the UK Competition & Markets Authority ordered JD Sports to sell Footasylum, which it had acquired in 2019. JD highlighted that Cowgill has known Bown "on a business and personal basis for over 25 years". As a result, JD said it was not unusual, "or in any way suspicious or illegitimate, for the pair to meet from time to time", including in relation to the ongoing review by the CMA of JD's acquisition of Footasylum. JD noted it has an obligation under the terms of the interim enforcement order from the CMA to encourage key staff of the Footasylum business - which includes Bown - to remain with the business. JD said its plan to split Cowgill's role of chair and chief executive before the next annual general meeting is progressing, while an additional non-executive director appointment is imminent.
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BAE Systems said it is well positioned for growth over the medium term as the defence contractor reiterated annual guidance. BAE said it continues to mitigate and manage supply chain pressures having avoided any material pressures to date. BAE said it was benefiting from long-term programme positions and incumbencies with stable forward visibility for long-lead items, allowing it actively manage supplier lead times against demand requirements. Looking ahead, BAE said its 2021 guidance remains unchanged from the time of its interim results and is underpinned by continuing good operational performance. BAE expects annual sales to rise by between 3% to 5% and underlying operating profit to increase by between 6% to 8%.
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COMPANIES - FTSE 250
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Business park operator Sirius Real Estate said it has agreed to buy Helix Investments for GBP245 million in cash and will raise GBP135 million to help fund the deal. Helix is the owner of flexible workspace provider BizSpace. Sirius plans to raise GBP135 million from placing of up to 105.3 million shares from investors in the UK and South Africa. The price at which the shares are to be issued will be announced at the close of a bookbuild process. Sirius shares closed at 138.00p on Friday in London. Sirius also said an improving economy and renewed market confidence was reflected in its interim performance. For the half year to September 30, pretax profit was EUR78.2 million, up 26% from EUR62.2 million last year. Sirius raised its interim dividend by 12% to 2.04 euro cents from 1.82 cents.
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COMPANIES - GLOBAL
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SoftBank said income fell in the first half of its current financial year amid losses on investments. The Tokyo-based technology investor reported net sales for the six months to September 30 of JPY2.983 trillion - about USD26.26 billion - up by 13% on a year prior. However, net income plummeted by 69% to JPY590.13 billion after SoftBank recorded a loss on investments of JPY395.2 billion, versus JPY2.033 trillion gain a year earlier. SoftBank declared as dividend of JPY22.00 per share for the second quarter of its financial year, unchanged from the payout a year ago.
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Sydney Airport said it has agreed to a USD17 billion takeover bid by an Australian investor consortium, just days after reopening to international travel. The airport's board unanimously approved the sale to the Sydney Aviation Alliance – a consortium of infrastructure investors and Australian pension funds – and recommended shareholders vote in favour. The alliance offered AUD8.75 per share, or AUD23.6 billion, about USD17.5 billion, after its earlier offers in recent months were rejected as too low. The announcement comes in the wake of Australia's international border partially reopening, almost 600 days after one of the world's toughest pandemic border closures began.
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Twitter has spoken – after Elon Musk polled his more than 62 million followers on whether he should sell 10% of his Tesla shares, by Sunday a majority had voted "yes". By Sunday, 57.9% of those who voted had picked "yes" in Musk's poll. "I was prepared to accept either outcome," said Musk, who regularly takes to Twitter to make unexpected announcements or surprising comments. He did not specify when or how he plans to sell the shares. Founder Musk owned about 17% of Tesla's outstanding shares as of June 30, currently worth USD208.37 billion, according to Bloomberg. By selling 10% of his shares, he could theoretically earn just under USD21 billion.
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Monday's Shareholder Meetings
Aberdeen New Thai Investment Trust PLC - GM re combination with AEMC and liquidation
Ironveld PLC - GM
Mid Wynd International Investment Trust PLC - AGM
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By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
