(Alliance News) - NMC Health said Monday it has appointed Moelis & Co, PwC and Allen & Overy as independent financial adviser, operational adviser and legal adviser, respectively, with immediate effect.
NMC said Moelis will support and advise on NMC's discussions with its lenders, while PwC will assist on liquidity management and operational measures.
"NMC is currently fully focused on safeguarding operational liquidity to continue funding existing operations throughout its various subsidiaries. In this context, NMC is asking for continued support and an informal standstill in relation to existing facilities from its lenders to achieve an immediate stabilisation of the group's financing. The informal standstill includes a request to lenders not to exercise any rights and remedies that may arise from any current or future defaults under the group's finance documentation," the company said.
NMC Health, which has faced criticism for not being transparent over shareholdings, said it has been confirmed that its principal shareholders now hold, "directly or indirectly, legally or beneficially, less than 30% of NMC's issued share capital." This potentially could trigger a change of control clause in its lending facility, NMC said.
NMC shares remain suspended from trading in London. With a market value of GBP1.5 billion, the company looks almost certain to be demoted from the FTSE 100, when FTSE Russell announce the index review changes on Wednesday.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 1.8% at 6,696.02
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Hang Seng: up 0.7% at 26,313.61
Nikkei 225: closed up 1.0% at 21,344.08
DJIA: closed down 357.28 points, 1.4%, at 25,409.36
S&P 500: closed down 0.8% at 2,954.22
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GBP: up at USD1.2815 (USD1.2753)
EUR: down at USD1.1070 (USD1.0997)
Gold: up at USD1,600.50 per ounce (USD1,585.25)
Oil (Brent): up at USD50.96 a barrel (USD49.02)
(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
0930 GMT UK manufacturing purchasing managers' index
0955 CET Germany manufacturing PMI
1000 CET EU eurozone manufacturing PMI
0945 EST US manufacturing PMI
1000 EST US ISM manufacturing report on business
1000 EST US construction spending
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The global death toll from the new coronavirus epidemic surpassed 3,000 on Monday after dozens more died at its epicentre in China and cases soared around the world with a second fatality on US soil. The virus has now infected more than 88,000 people and spread to over 60 countries after first emerging in China late last year. South Korea, the biggest nest of infections outside China, reported nearly 500 new cases on Monday, bringing its total past 4,000. A second person died in the northwestern US state of Washington as President Donald Trump, who has downplayed the risk of a major outbreak, faced criticism over his administration's preparedness to respond to the threat. With fears of a pandemic on the rise, the World Health Organization urged all countries to stock up on critical care ventilators to treat patients with severe symptoms of the deadly respiratory disease.
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Activity in the Irish manufacturing sector ticked down in February on falls in employment and stocks of purchases components, but remained firmly above growth levels. Survey data from AIB and IHS Markit showed the AIB manufacturing purchasing managers' index stood at 51.2 in February, down from 51.4 in January. The reading was above 50.0 mark that separates expansion from contraction. Despite the lower reading, IHS Markit said it was indicative of a sustained improvement in manufacturing operating conditions in Ireland, with stronger growth in output and new orders. However, there were signs of pressure on supply chains caused by the coronavirus outbreak in China, with delivery times by suppliers lengthening the most since March 2019. Reflecting this, manufacturers reduced the total volume of inputs ordered during the month, compared to January.
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Moderate former mayor Pete Buttigieg ended his bid to become the Democratic candidate for president in the 2020 US election on Sunday. Buttigieg's exit leaves several serious contenders in the crowded Democratic field, including senators Bernie Sanders, Elizabeth Warren and Amy Klobuchar. The 38-year-old former mayor of South Bend, Indiana, pulled out of the race following a disappointing turnout at the South Carolina primary. His withdrawal came shortly before Super Tuesday, when a third of the delegates - 1,357 - are in play as 16 states and jurisdictions hold their primaries.
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North Korea fired two projectiles into the East Sea, also known as the Sea of Japan, Japan's Defence Ministry confirmed describing the projectiles as "ballistic missiles". "Pyongyang's ballistic missiles did not fly into our territory and its exclusive economic zone," Japan's defence ministry said. United Nations Security Council resolutions ban North Korea from firing ballistic missiles which, depending on their design, can also carry nuclear warheads.
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BROKER RATING CHANGES
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BERENBERG CUTS IAG PRICE TARGET TO 620 (700) PENCE - 'BUY'
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BARCLAYS CUTS RBS PRICE TARGET TO 190 (225) PENCE - 'UNDERWEIGHT'
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BARCLAYS CUTS STANDARD CHARTERED TARGET TO 550 (650) PENCE - 'UNDERWEIGHT'
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COMPANIES - FTSE 100
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AstraZeneca said it completed the divestment of five hypertension drugs to Atnahs Pharma, receiving USD350 million upfront with contingent payments of up to another USD40 million possible. The five drugs, for which Astra is divesting its global commercial rights, are Inderal, Tenormin, Tenoretic, Zestril, and Zestoretic. The divestment was originally announced in late January. At which time Astra said the sale excludes the US and India, which have already been sold, as well as Japan, where Astra will keep commercial rights. Astra has already received USD350 million upfront from Basildon-based Atnahs but could also receive another USD40 million in future sales-contingent payments between 2020 and 2022.
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Sage Group said it has entered into an agreement for the sale of its Brazilian business to local management. The sale is part of Sage's strategy to focus on subscription software solutions, it said. The company said the sale consideration is GBP1 million payable on completion, plus deferred consideration of up to GBP9 million. Sage said it expects to report a statutory non-cash loss on disposal of GBP15 million on completion. Sage said the transaction is expected to complete within the next two months.
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Just Eat Takeaway.com announced the start of legal action against rival and shareholder Delivery Hero over the alleged breaking of a standstill agreement. In late 2018, the then-Takeaway.com bought Delivery Hero's German food delivery businesses Lieferheld, Pizza.de, and foodora for EUR930 million in cash and shares. The sale at the time gave Berlin-based Delivery Hero an 18% stake in Takeaway.com. Dutch food delivery Takeaway.com has since merged with UK-based peer Just Eat, forming Just Eat Takeaway.com. As part of the deal, which completed April 2019, Takeaway.com and Delivery Hero signed a seven-year relationship agreement. Part of this included a four-year standstill agreement, which stipulated Delivery Hero was not allowed to increase its stake in Takeaway.com. It was allowed to sell shares, but not to any party involved in the online food delivery market. In mid-February, Delivery Hero announced it would "restore its exposure" to Just Eat Takeaway.com by buying 8.4 million shares to increase its stake to nearly 11%, which had been diluted by the Takeaway.com and Just Eat merger. "Takeaway.com believes Delivery Hero has failed to comply with its standstill undertaking under the relationship agreement by entering into the forward share purchase and equity collar transaction it announced on February 12, 2020," said Just Eat Takeaway.com on Monday.
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COMPANIES - FTSE 250
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Aerospace parts maker Senior reported a drop in annual profit following the Boeing 737 MAX grounding. Senior said it delivered "robust" annual results, supported by a strong free cash flow performance. Senior said its results were achieved against a difficult civil aerospace market backdrop due the grounding of the Boeing 737 MAX fleet following the fatal Lion Air and Ethiopian Airlines crashes. For 2019, Senior's revenue was up 3% to GBP1.11 billion from GBP1.08 billion in 2018, but pretax profit was down 55% at GBP28.7 million from GBP61.3 million. Free cash flow was 53% higher at GBP58.3 million in 2019, from GBP45.3 million in 2018. Senior raised its 2019 total dividend to 7.51 pence from 7.42p the year before. "Senior delivered robust full year results for 2019 with adjusted earnings per share growth and a strong free cash flow performance. This result has been achieved in a period where the business has faced challenges caused by the grounding of the Boeing 737 MAX fleet. It is clear that our performance in 2020 will continue to be affected by the 737 MAX situation and the company is taking all necessary actions to mitigate the impact," said Chief Executive David Squires. "We are closely monitoring the development of the coronavirus (COVID-19), including the potential impact of any macroeconomic disruption on our end markets, our supply chain and those of our customers," Squires added.
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Investec's asset management unit priced shares in relation to its upcoming initial public offering. Ninety One PLC, which will be listing in London and Johannesburg on March 16, said the shares represent 10% of its stock, which will be sold by the Investec group. The shares in the offer will be priced between 190 pence and 235p, raising between GBP181.9 million to GBP226.1 million. The net proceeds of the offering will be retained by the Investec group, Ninety One said. It added: "Immediately following admission, assuming the global offer proceeds, Ninety One intends to have a free float representing 60% to 65% of Ninety One's combined total issued share capital." The pricing range also implied a market capitalisation between GBP1.75 billion and GBP2.17 billion.
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Monday's Shareholder Meetings
MXC Capital (re AIM cancellation)
Midatech Pharma
JPMorgan Russian Securities
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By Tom Waite; thomaslwaite@alliancenews.com
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