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(Alliance News) - Johnson Matthey said Friday it has sold a majority stake in its Health unit to Altaris Capital Partners for an enterprise value of GBP325 million. Altaris is a healthcare-focused investment firm.
"Johnson Matthey will retain approximately a 30% equity stake from which it expects to realise significant additional future value," the specialist chemicals maker explained, adding completion is expected in mid-2022.
Johnson Matthey said the unit operates in "different markets from the rest of the group" and a strategic probe has found it is "not core".
The sale will lead to an accounting loss of GBP200 million, Johnson Matthey added.
Johnson Matthey is set to be demoted from the FTSE 100 index to the FTSE 250 on Monday next week as part of the quarterly index review. The company's shares have suffered since announcing plans in November to quit its once-promising battery materials business.
The stock was up 0.3% early Friday but is down 18% so far in 2021 and down 39% since a late-April peak.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 1.4% at 7,272.93
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Hang Seng: down 1.2% at 23,204.64
Nikkei 225: closed down 1.8% at 28,545.68
S&P/ASX 200: closed up 0.1% at 7,304.00
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DJIA: closed down 29.79 points, or 0.1%, at 35,897.64
S&P 500: down 41.18 points, or 0.9%, at 4,668.67
Nasdaq Composite: closed down 385.15 points, or 2.5%, at 15,180.44
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EUR: up at USD1.1321 (USD1.1310)
GBP: down at USD1.3309 (USD1.3320)
USD: firm at JPY113.64 (JPY113.60)
Gold: up at USD1,808.36 per ounce (USD1,796.70)
Oil (Brent): down at USD74.45 a barrel (USD74.90)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Friday's key economic events still to come
1000 CET Germany Ifo business climate index
1100 CET EU consumer price index
1100 CET EU construction output
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UK retail sales grew at a faster pace than expected in November, boosted by the Black Friday sales event, as clothing store sales topped pre-virus levels for the first time. Figures from the Office for National Statistics showed UK retail sales advanced 4.7% yearly in November, beating Trading Economics cited market consensus of a lesser 4.2% rise. Sales had fallen 1.5% in October. On a monthly basis, retail sales rose 1.4% in November, following a 1.1% climb in October. Excluding fuel, sales climbed 2.7% annually and 1.1% monthly in November.
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The Bank of Japan followed the US Federal Reserve in scaling back its pandemic-related funding measures, as the economy is set to recover amid waning supply-side constraints. The board, governed by Haruhiko Kuroda, decided to end the additional purchases of commercial paper and corporate bonds at the end of March 2022 as scheduled. From April 2022, the purchases of securities will be of the same amount as prior to the Covid-19 pandemic, so that the amounts outstanding of these assets will decrease gradually to the pre-pandemic levels, namely, about JPY2 trillion, about USD17 billion, for commercial paper and about JPY3 trillion for corporate bonds. The board decided to maintain the interest rate at -0.1% on current accounts that financial institutions maintain at the central bank.
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BROKER RATING CHANGES
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HSBC CUTS SEVERN TRENT TO 'HOLD' (BUY)
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BARCLAYS CUTS BOOHOO TO 'EQUAL WEIGHT' (OVERWEIGHT) - PRICE TARGET 135 (395) PENCE
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INVESTEC CUTS BOOHOO TO 'SELL' ('HOLD') - TARGET 95 (170) PENCE
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COMPANIES - FTSE 100
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NatWest progressed with its planned exit from the Republic of Ireland. In mid-February, in its annual results, NatWest had outlined plans to exit from the republic, which has already included selling EUR4.2 billion in gross performing commercial lending and associated undrawn exposures of about EUR2.8 billion to AIB Group. It has now signed a legally-binding agreement with Permanent TSB to offload about EUR7.6 billion of assets. The package of assets is made up of performing non-tracker mortgages, a performing micro-SME loan book, Ulster Bank's Lombard asset finance business and 25 of its branch locations. A non-binding memorandum of understanding was inked between the parties back in July. Completion is expected to occur between the fourth quarter of next year and early 2023. As part of the deal, NatWest is to receive a just shy of a 17% non-consolidating equity stake in Permanent TSB. Ulster Bank now has deals in place for around 58% of its total gross lending portfolio and an estimated 65% of its credit risk-weighted assets, NatWest explained.
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COMPANIES - MAIN MARKET AND AIM
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Smart Metering Systems said it has extended an exclusivity agreement with Shell Energy Retail, a unit of the oil major, for the installation of and funding of smart meters until December 2025. "The extension of the exclusivity agreement is a testament to the strength of our long-term relationship with Shell, underpinned by our well established end-to-end integrated model," SMS Chief Executive Alan Foy said.
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SIG said it has continued to trade well, topping expectations so far in the fourth quarter. "This has increased visibility and confidence," the building materials company said. Annual underlying operating profit is now expected to be "no less" than GBP40 million, ahead of previous expectations.
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Friday's shareholder meetings
Cindrigo Holdings Ltd - AGM
EP Global Opportunities Trust PLC - GM re new investment policy
Focusrite PLC - AGM
Marwyn Acquisition Co PLC - AGM
PetroNeft Resources PLC - AGM
Renalytix PLC - AGM
Thor Explorations Ltd - AGM
Zanaga Iron Ore Co Ltd - AGM
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By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
