San Leon Share News (SLE)

LONDON (Alliance News) - Lloyds Banking Group shares are amongst the best-performing stocks in the FTSE 100 Monday after UK Financial Investments extended the trading plan under which it is selling the UK government's stake in the bank back to the market by a further six months, and as the government confirmed that a further 1% stake in the bank has been sold.

The UK government also confirmed that Lloyds shares will be sold to retail investors "in the next 12 months". Further details will be set out in due course, it added.

UKFI, which manages the government's stakes in financial institutions that were bailed out during the financial crisis, said the trading plan will continue to be managed by investment bank Morgan Stanley and will now run until no later than the end of December 2015. The original plan, announced last December, was due to end on June 30.

The extension of the trading plan means Chancellor of the Exchequer George Osborne can meet his pledge to sell at least GBP9 billion of Lloyds shares in fiscal 2015-21016.

So far, 4.2 billion Lloyds shares have been sold under the trading plan, leaving the UK government with about 13.6 billion shares, or a stake of just under 19%. Last month, stock exchange disclosures showed the stake had dropped to 19.93% from 20.95%, and a fresh disclosure on Monday showed the stake has now dropped to 18.99%.

Prior to the launch of the trading plan, UKFI had sold a 7.78% stake in Lloyds in a placing in March 2014 and a stake of about 6% through a placing in September 2013.

The Treasury said Monday that the latest stake sale means it has now recovered almost GBP3.5 billion for the taxpayer from the trading plan, bringing the total recovered from Lloyds in total to over GBP10.5 billion. Shares sold under the trading plan have been sold for an average price of over 80 pence, above the 73.6 pence that the government paid for the shares.

FTSE 250-listed Playtech has reached an agreement to acquire troubled online contracts-for-difference trading platform Plus500 for GBP459.6 million, a deal which comes after Plus500 shares plunged after the company had to suspend some of its UK customer accounts to address its anti-money laundering processes.

Under the takeover deal, Playtech, which provides software and services for the gaming industry and which has recently moved into the foreign exchange trading sector, will pay 400 pence per share for Plus500. Shares in Plus500 closed at 370 pence on Friday, having dropped by nearly 50% over the course of May owing to the concerns about the account suspensions.

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Markets: London stocks are mixed with Greece debt negotiations still in focus and after a flurry of PMI readings from China, Europe and the UK. The pound drifted lower against the dollar after data showed that UK manufacturing activity grew by less than forecast in May.

Futures point to a higher open for US stock indices, with the DJIA currently indicated up 0.2% and the S&P 500 and Nasdaq 100 both indicated up 0.1%.

FTSE 100: down 0.1% at 6,979.35
FTSE 250: up 0.2% at 18,186.00
AIM ALL-SHARE: up 0.2% at 774.23
GBP: down at USD1.5198
EUR: down at USD1.0916
GOLD: down at USD1,185.42 an ounce
OIL (Brent): down at US64.82 a barrel
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Other Top Corporate News
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British American Tobacco said it has stuck a EUR550 million deal to acquire TDR and other tobacco and retail assets from Adris Grupa to expand its central European operations. BAT said TDR is the leading independent cigarette manufacturer in central Europe, with a presence in the Croatian, Serbian and Bosnian markets. BAT said that by combining its existing businesses with TDR, it expects to boost its regional leaf-processing capabilities and strengthen its relationships with distributors and retailers in central Europe.
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AstraZeneca announced preliminary efficacy and safety data for AZD9291 in the first-line treatment of epidermal growth factor receptor mutation positive advanced non-small cell lung cancer. The company reported that the data showed that 81% of patients on a once daily dose of AZD9291 were progression free at 9 months; overall response rate was 73%. The most common adverse events in both cohorts included rash and diarrhoea.
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Prudential said Barry Stowe has been appointed as its replacement as the chairman and chief executive of its North American operations for new Chief Executive Mike Wells. The life insurer said Stowe currently is chief executive of Prudential Corp Asia and will be replaced in that role by Tony Wilkey, currently chief executive of Prudential Corp Asia's insurance arm. Stowe had been among those named as the potential successors to Tidjane Thiam, Prudential's former chief executive, who is set to take over as the chief executive of Credit Suisse, the Swiss bank. Wells took over from Thiam on Monday.
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Testing, certification and inspection services company Intertek said it is planning to open a European immunochemistry laboratory in Manchester. Intertek said the laboratory will provide bioanalytical suport for clinical and pre-clinical immunogenicity and pharmacokinetic studies on biologic medicines. Biologic medicines are a new class of therapeutics for diseases previously treated with small-molecule drugs, as well as a type of novel treatment for those previously untreatable diseases.
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AVEVA said it has struck a deal to acquire FabTrol Systems Inc from the Dowco Group of Companies for USD6.5 million in cash. FTSE 250-listed AVEVA said FabTrol is a US-based company which provides fabrication management software to the steel fabrication industry. It said the deal will boost its fabrication portfolio and will provide integration across the steel fabrication supply chain. The USD6.5 million consideration is being funded from AVEVA's existing cash resources, and it expects the deal to be earnings accretive in the current financial year.
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SVG Capital said its net asset value per share rose 1% over the course of the first quarter of its financial year, while it received GBP287 million during the three months as it fully sold its remaining stake in fashion brand Hugo Boss and partially sold its stake in Arysta LifeScience. The private equity investor also said it expects to make at least one new investment commitment and further co-investments this year. SVG said its net asset value per share stood at 592 pence, or GBP1.1 billion, on April 30, up 1% compared with January 31 and up 15% compared with a year earlier. It reported a 2% total return on its net investment portfolio over the quarter, or a 4% total return excluding currency exchange rate fluctuations.
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Bank of Georgia Holdings said its healthcare subsidiary has struck a deal to acquire a 50% stake in a Tbilisi hospital. Bank of Georgia did not provide any financial details on the transaction, but said that its Georgia Healthcare Group unit will acquire a 50% equity interest in GNCo, which owns the High Technology Medical Center University Clinic in Tbilisi, the Georgian capital. The 450-bed hospital provides a range of in-patient and out-patient services, including the country's largest oncology radiotherapy department.
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Ultra Electronics Holdings said it has agreed to acquire the electronics products division of US-based radio frequency and microwave systems supplier Kratos Defense & Security Solutions for USD265 million. Ultra Electronics said the deal would give it a major presence in the electronic warfare market, in particular in the US, and said the long-term contracts it will take on as part of the deal will boosted its order book visibility.
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AIM Movers
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Sunrise Resources shares are up 43% after it said it will refocus its drilling programme at the Bay State silver project in the US state of Nevada onto the Chihuahua vein after the latest test results produced "bonanza" silver grades. China New Energy shares are up by more than a third after it bought a 24% stake in a Hungarian bioethanol project for EUR250,000, and said it could increase its stake further. Serica Energy is up despite its loss widening in 2014 on the back of significant impairments, as the company puts its focus on the Erskine field in the UK North Sea after purchasing an interest in the project from oil major BP in June. Roxi Petroleum is another gainer after it cancelled a share subscription deal with BOCO due to the imminent sale of the Galaz contract area in Kazakhstan despite extending the deadline due to the need for Chinese regulatory approval. Roxi said it has also finally cleared the blockage at the Deep Well A5 that was plaguing operations and said it could make a separate discovery at the nearby Deep Well 801 after discovering it does not link up with the A5 well. Omega Diagnostics is up after it said its Visitect CD4 infectious disease product appears to be capable of meeting its targets and said it has made progress on its allergy development. Real Good Food is also up after it said it expects to have made net sales of GBP104 million and earnings before interest, tax, depreciation and amortisation of GBP5.3 million for continuing operations in its recently-ended financial year, an improvement on the year, and said current trading is doing well. Frontier Resources has lost almost a quarter of its value after it said its subscription agreement with AGR Energy Ltd No.II will no longer proceed and it has started discussions regarding potential alternative funding for its immediate working capital requirements.
Starcom is also down after it raised GBP475,000 via a share placing, funds to provide additional working capital for the business, and said its finance director has stepped down. Circle Oil is down after it swung to a substantial pretax loss in 2014 due to impairments and write-offs related to its operations in Oman and Egypt and the fall in oil prices. San Leon Energy is another decliner after it poposed a conditional placing and share capital reorganisation which would significantly enlarge the share capital of the company to raise GBP29 million. Camco Clean Energy is down after it said its pretax loss narrowed in 2014 despite revenue falling, as restructuring improved performance in the US, though this was offset by reduced revenue from realigned African operations.
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Top Economics And General
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British manufacturing growth improved by less than expected in May, due to modest expansions of both output and new orders, survey figures from Markit Economics showed. The Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index, rose marginally to 52.0 in May from 51.8 in April, which was revised from 51.9. Economists had expected a reading of 52.8 for the month. Any reading above 50 indicates expansion in the sector. Manufacturing production increased at a slower pace in May, but the pace of easing was less severe than April's sharp slowdown, led by solid domestic demand.
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Manufacturing body the EEF said the UK manufacturing industry is expected to grow at a slower than expected pace this year. Manufacturing growth is expected to be 1.5% in 2015 instead of the 1.7% projected three months ago. The sector is still in positive territory, but the ground is looking a lot less firm beneath its feet, EEF Chief Economist Lee Hopley said. The weakening trend looks set to continue, he added.
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The Confederation of British Industry said economic growth raced ahead in the three months to May at its strongest pace for a year. The growth indicator rose to +33% in three months to May, sharply up from 19% seen in three months to April. The indicator logged its highest balance since May 2014.
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Eurozone manufacturing sector continued to expand in May but the latest pace of expansion was slightly weaker than the initial estimate, final data from Markit Economics showed. The final manufacturing Purchasing Managers' Index came in at 52.2, matching March's ten-month high but just below the flash estimate of 52.3. In April, the score was 52.
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The manufacturing sector in China continued to contract in May, the latest report from HSBC Bank showed on Monday, with a manufacturing PMI score of 49.2. That was in line with expectations, and it represented a slight upward revision from last month's flash estimate reading of 49.1. It was up from 49.9 in April, although it remains beneath the line of 50 that separates expansion from contraction in a sector. "The headline PMI signalled a further deterioration in the health of China's manufacturing sector in May. A solid fall in new export work contributed to fewer new orders, which in turn led to the first contraction of output in 2015 so far," said Annabel Fiddes, economist at Markit Economics.
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The manufacturing sector in Japan turned to expansion in May, the latest survey from Markit Economics showed, with a manufacturing PMI score of 50.9. That's unrevised from last month's flash estimate, and it's also up from the 49.9 reading in April.
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European officials expressed criticism on Saturday of a Russian blacklist of 89 people who have reportedly been banned from entering the country. Moscow has prevented several European politicians from travelling to Russia in recent months, citing a confidential blacklist of banned individuals, but without releasing information about the list. But details began to emerge on Friday, days after Russia turned away conservative German lawmaker Karl-Georg Wellmann, who chairs the German-Ukrainian group in parliament and has criticized Moscow over the conflict in eastern Ukraine.
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More than 5,000 migrants have been rescued from drowning in the Mediterranean Sea over the past three days, the EU border agency Frontex said. "This is the biggest wave of migrants we have seen in 2015," said Frontex Executive Director Fabrice Leggeri in a statement. The rescue operations began Friday, when 25 boats filled with people trying to escape conflict-torn Libya departed for Europe.
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The US Department of State spokesperson said Secretary John Kerry broke his right femur in a bicycling accident Sunday in Scionzier, France. Given the injury is near the site of his prior hip surgery, he will return to Bostonto seek treatment at Massachusetts General Hospital with his doctor who did the prior surgery. The Secretary is stable and never lost consciousness, his injury is not life-threatening, and he is expected to make a full recovery.
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The US Senate failed to extend key parts of anti-terrorism legislation during a rare session late Sunday, following a dispute over intelligence services reform and a controversial telephone metadata collection programme. Earlier Sunday, the National Security Agency (NSA) began the process of shutting down the phone metadata programme established under the Patriot Act.
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Re-elected FIFA president Joseph Blatter faces a long and difficult road to restore the credibility of football's ruling body amid European dissent and possibly more action against officials in connection with a US-led corruption probe. Many questions remain as to whether FIFA can reform itself at all now that Blatter has earned a fifth term in office at Friday's ballot at the FIFA congress in Zurich. FIFA was rocked by indictments on 14 people, including senior FIFA officials, on bribery and racketeering charges by authorities in the US. To date, seven have been arrested in Switzerland and one in Trinidad-Tobago. Separate from those indictments, another four defendants have pleaded guilty to US charges in connection with FIFA corruption. Prince William joined the debate as well in his function as president of the English FA around the FA Cup final Saturday. "Those backing FIFA, such as sponsors and the regional confederations, must do their bit to press these reforms - we are doing football and its fans no favours if we do not," he was quoted as saying.
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Afternoon Watchlist (all times in BST)

13:00 Germany Consumer Price Index
13:30 US Core Personal Consumption Expenditure
14:05 US Federal Reserve Bank of Boston President Rosengren Speech
14:45 US Markit Manufacturing PMI
15:00 US ISM Manufacturing PMI
15:00 US Construction Spending
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Tuesday's UK Corporate Events

First Derivatives - Full Year Results
OPG Power Ventures - Full Year Results
RWS Holdings - Half Year Results
Wolseley - Q3 Interim Management Statement
BP Marsh & Partners - Full Year Results
LondonMetric Property - Full Year Results
Synergy Health - Full Year Results
Acal - Full Year Results
AO World - Full Year Results
Harvey Nash Group - Q1 Interim Management Statement
St Modwen Property - Trading Statement
AMEC Foster Wheeler - Trading Statement
APR Energy - Q1 Interim Management Statement
Afren - Interim Management Statement
UK Commercial Property Trust - Trading Statement
SDL - Interim Management Statement
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Tuesday's Key Economic Events (all times in BST)

08:55 Germany Unemployment Rate
09:30 UK Consumer Credit
09:30 UK PMI Construction
09:30 UK Mortgage Approvals
10:00 EU Producer Price Index
10:00 EU Consumer Price Index
13:55 US Redbook index
14:45 US ISM New York index 58.1
15:00 US IBD/TIPP Economic Optimism
15:00 US Factory Orders
18:30 US Total Vehicle Sales 17.0M 16.5M
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