(Alliance News) - UDG Healthcare said Tuesday it has agreed to be bought by Clayton Dubilier & Rice, after the US private equity firm returned to the table with an improved takeover offer.
UDG Healthcare said it has agreed final terms with CD&R on an offer that values the Dublin-based private healthcare provider at GBP2.76 billion.
Under the deal terms, UDG shareholders will be entitled to receive 1,080 pence for each share, up 5.6% from the previous offer of 1,023p per share. The stock was up 0.5% early Tuesday in London at 1,071.00p. It is up 37% so far in 2021.
UDG said CD&R has the support of 11% of shareholders, including Allianz Global Investors and Kabouter Management, for the final offer. Other institutional shareholders of UDG also have indicated their willingness to vote in favour of the deal.
As such, UDG directors unanimously recommend the acquisition to shareholders, the company said. "The UDG directors believe that the UDG group is well positioned for future continued success and that the long-term prospects of the group are strong as an independent listed entity. Nevertheless, the UDG directors recognise that uncertainties exist, many of which are beyond UDG's control," it explained.
UDG has called shareholder meetings for July 22 to approve the deal.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.5% at 7,106.92
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Hang Seng: down 1.0% at 28,989.39
Nikkei 225: closed down 0.8% at 28,812.61
DJIA: closed down 150.57 points, or 0.4%, at 34,283.27
S&P 500: closed up 0.2% at 4,290.61
Nasdaq Composite: closed up 1.0% at 14,500.51
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EUR: down at USD1.1922 (USD1.1932)
GBP: down at USD1.3871 (USD1.3884)
USD: firm at JPY110.60 (JPY110.53)
Gold: down at USD1,776.15 per ounce (USD1,779.56)
Oil (Brent): down at USD74.42 a barrel (USD75.32)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Tuesday's Key Economic Events still to come
1100 CEST EU business & consumer surveys
1400 CEST Germany consumer price index
0930 BST UK mortgage approvals
0900 EDT US monthly house price index
1000 EDT US consumer confidence
1630 EDT US API weekly statistical bulletin
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UK house prices continued to surge in June with the highest rate of annual growth since November 2004, figures from mortgage lender Nationwide showed. On an annual basis, the Nationwide house price index jumped 13% in June, rising from 11% growth in May. The reading missed the market estimate, cited by FXStreet, of 14%. On a monthly basis, house prices rose 0.4% in June, slowing from 1.7% in May. The print missed the market forecast of 0.7%. The average UK house price stood at GBP245,432 in June, up from GBP242,832 in May. The domestic housing market continued to benefit from borrowing costs at near record lows and the UK government's stamp duty holiday on purchases.
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The OPEC+ group of oil-producing countries will meet on Thursday and are expected to agree to boost production in August in order to meet demand and damp recent price rises. While improvement in demand drove the group's most recent rises in production, now price levels will also be a guiding force behind the club's decisions. After demand dropped when the coronavirus pandemic broke out last year and crude prices briefly turned negative, the club led by Saudi Arabia and Russia imposed sharp production cuts in order to raise prices. The 13 members of OPEC and their 10 allies in the OPEC+ grouping were rewarded by seeing prices for the two contracts of reference, Brent and WTI, recover to around USD75 per barrel, levels not seen since October 2018. However that strategy has worked almost too well and the group is currently following a policy of cautiously turning the taps back on. Russia is expected to favour increasing output, as it has done at several recent OPEC+ meetings.
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Unemployment in Japan rose in May both on a monthly and annual basis, figures from the Japan Statistics Bureau showed. There were more employed persons in Japan in May than a year ago, up by 11,000 people, or 0.2%, totalling 66.7 million. The number of unemployed people rose by 13,000, or 6.6%, year-on-year to 2.1 million. The unemployment rate stood at 3.1% up 0.2 percentage point when compared to May 2020. The employment rate, meanwhile, improved by 0.2 percentage point to 60%.
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BROKER RATING CHANGES
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GOLDMAN SACHS INITIATES ADMIRAL GROUP WITH 'SELL' - TARGET 2,870 PENCE
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GOLDMAN INITIATES DIRECT LINE WITH 'BUY' - TARGET 380 PENCE
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BARCLAYS RESUMES IG GROUP WITH 'OVERWEIGHT' - TARGET 1,035 PENCE
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COMPANIES - FTSE 100
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Housebuilder Barratt Developments said it has appointed Mike Scott as an executive director and chief financial officer. The date he will join Barratt is currently being finalised and will be announced in due course. Scott, who is currently CFO of FTSE 250-listed peer Countryside Properties, has extensive experience in the housebuilding sector, having joined Countryside as financial controller in 2014, Barratt said. Countryside Properties noted the announcement, saying it was commencing a search for Scott's successor and will confirm his leaving date in due course.
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Standard Life Aberdeen said a wholly owned subsidiary netted GBP652 million from the sale of 100.8 million shares in HDFC Life, a 4.99% stake in the Indian operation. Standard Life Aberdeen's remaining holding HDFC Life is 3.89%, worth GBP530 million.
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COMPANIES - FTSE 250
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IWG has held secret talks with a New York-based private equity firm over a GBP4 billion buyout of the office space provider, Sky News reported late Monday. CC Capital held talks with the Regus owner, Sky said. Citing a property industry source, Sky added that any bid will be a "very significant" premium to IWG's current share price. The stock closed down 2.3% at 300.20 pence each in London on Monday, valuing the company at GBP3.02 billion. A potential CC Capital bid would value IWG at GBP4 billion at least, Sky News noted.
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COMPANIES - MAIN MARKET AND AIM
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Marine services provider James Fisher said it remains on track for improved underlying operating profit in 2021, with profit to be more weighted to the second half of the year than in the past. James Fisher also unveiled a new strategy to "refocus" on niche sectors in its chosen markets, where it has leading position and where barriers to entry are high. At the same time, the company will be "addressing underperforming assets and businesses". The plan will encompass a focus on maintaining attractive and growing segments in marine, energy and defence markets and reinforcing internal processes to support organic growth, James Fisher said. As part of the strategy, James Fisher has set a medium-term target of underlying operating profit margin above 10% and return on capital employed of above 15%.
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Energy services firm Hunting said it expects 2021 earnings before interest, tax, depreciation and amortisation to be below previous expectations but still above 2020. Ebita had fallen to USD26.1 million in 2020 from USD139.7 million in 2019. Hunting said it will record a "modest loss" in Ebitda terms in the first half; however it was Ebitda positive in the second quarter after a loss in the first quarter.
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COMPANIES - GLOBAL
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Toyota Motor said sales and production of its cars increased in May amid a recovery of both the Japanese and international markets from last year's initial pandemic impact. The Tokyo-based automaker said global sales - including subsidiaries Daihatsu Motor Co Ltd and Hino Motors Ltd - were up 48% from the previous year in May to 904,670 units. Global production of Toyota-branded cars was 671,097 units in May, up 83% from a year before. When including Daihatsu and Hino, production grew by 88% year-on-year to 770,144 units.
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Tuesday's Shareholder Meetings
Anglo Asian Mining PLC - AGM
Attraqt Group PLC - AGM
British & American Investment Trust PLC - AGM
City of London Investment Group PLC - GM re appropriation of distributable reserves of historic dividends
Cizzle Biotechnology Holdings PLC - AGM
Crimson Tide PLC - AGM
Gama Aviation PLC - AGM
GB Group PLC - AGM
Greencare Capital PLC - AGM
Impellam Group PLC - AGM
Mears Group PLC - AGM
Mobile Tornado Group PLC - AGM
MyHealthChecked PLC - AGM
NAHL Group PLC - AGM
Pacific Assets Trust PLC - AGM
Rockhopper Exploration PLC - AGM
Sound Energy PLC - AGM
Sportech PLC - AGM
Sportech PLC - GM re move to AIM from London Main Market
St Mark Homes PLC - AGM
Universe Group PLC - AGM
Watchstone Group PLC - AGM
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By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
