(Alliance News) - Cinven said on Friday it made a takeover approach to FTSE 250-listed Sanne earlier in May, but this was rejected.
Cinven, adviser to the managing general partners of the Cinven funds, confirmed that on May 4, it approached Sanne with a 830p-per-share cash offer. In addition, shareholders would be able to receive the final dividend of 9.9p per share declared in May.
Sanne shares closed at 603p in London on Thursday, meaning Cinven's approach was at a 38% premium. With 162.3 million Sanne shares in issue, the Cinven offer values the firm at GBP1.35 billion.
Sanne shares were up 26% at 760.45p early Friday.
However, the proposal was rebuffed on May 12 by the London-based fund and corporate services firm.
Cinven is considering its position, it said, though cautioned there is no certainty any offer will be made. It has until the end of business on June 11 to either make a firm offer or walk away.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.6% at 7,006.62
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Hang Seng: up 1.2% at 28,041.54
Nikkei 225: closed up 2.3% at 28,084.47
DJIA: closed up 433.79 points, or 1.3%, at 34,021.45
S&P 500: closed up 49.46 points, or 1.2%, at 4,112.50
Nasdaq Composite: closed up 93.31 points, or 0.7%, at 13,124.99
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EUR: up at USD1.2107 (USD1.2071)
GBP: up at USD1.4061 (USD1.4045)
USD: down at JPY109.38 (JPY109.60)
Gold: up at USD1,834.38 per ounce (USD1,823.80)
Oil (Brent): down at USD66.87 a barrel (USD67.55)
(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
1100 BST Ireland goods exports and imports
1330 CEST EU ECB meeting accounts
0830 EDT US import & export price indexes
0830 EDT US retail sales
0915 EDT US industrial production & capacity utilization
1000 EDT US manufacturing & trade: inventories & sales
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The Health Service Executive in Ireland has closed down its IT systems after being targeted in what it said was a "significant ransomware attack". The HSE said it had shut down its systems as a "precaution". It said Covid-19 vaccination appointments were not affected by the incident. "There is a significant ransomware attack on the HSE IT systems," it said on Twitter. "We have taken the precaution of shutting down all our IT systems in order to protect them from this attack and to allow us fully assess the situation with our own security partners."
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Japan's government is expected to widen a virus state of emergency Friday, just 10 weeks before the Tokyo Olympics, as campaigners submitted a petition with more than 350,000 signatures urging the Games be scrapped. With Tokyo and other areas already under emergency orders until the end of May, three more regions – including northern Hokkaido, which will host the Olympic marathon – are set to join them. The widening emergency, aimed at combatting a fourth wave which is putting Japan's medical system under strain, comes with public opinion firmly opposed to holding the Games this summer, fearing further infections.
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BROKER RATING CHANGES
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GOLDMAN SACHS RAISES SPIRAX-SARCO TO 'NEUTRAL' ('SELL') - TARGET 11,400 (10,500) PENCE
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JEFFERIES RAISES UDG HEALTHCARE TO 'HOLD' ('UNDERPERFORM') - TARGET 1023 (585) PENCE
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EXANE BNP RAISES MAN GROUP TO 'OUTPERFORM' ('NEUTRAL') - TARGET 200 (170) PENCE
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COMPANIES - FTSE 100
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Accounting software firm Sage reported a sharp fall in interim profit but strengthened its outlook for organic recurring revenue growth. Revenue for the financial half-year to March 31 fell 4% to GBP937 million, though organic total revenue rose 1.4% and organic recurring revenue by 4.4%. Pretax profit dropped 31% to GBP190 million from GBP275 million. The organic operating profit margin narrowed to 20.2% from 23.2%, which Sage said reflected its planned additional strategic investment to accelerate growth across Sage Business Cloud with a focus on cloud native solutions. Despite the profit fall, the firm bumped up its dividend by 2.0% to 6.05 pence from 5.93p a year ago. Sage said it now expects organic recurring revenue growth for the full-year to be towards the top end of its 3% to 5% guidance range. As previously guided, the organic operating margin is expected to be as much as three percentage points below the 2020 financial year, reflecting "strategic investment" in the business.
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COMPANIES - FTSE 250
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Sabre Insurance said it is confident that volumes will continue to increase as the number of drivers and car sales rise. First quarter volumes were in line with expectations, it said, while gross written premiums for the four months to April 30 were GBP46.0 million, down from GBP54.6 million a year ago. The firm remains focused on "prioritising underwriting profitability over volume", with price increases "materially ahead" of the market. It is too early to identify meaningful market quote volume increases as lockdown eases, the motor insurer said, though it noted April volumes were ahead year-on-year. "Volumes through Q1 were in line with our expectations, during which we continued to execute our strategy of focusing on profitability over volume. Alongside that, we continue to investigate and implement new rating factors and potential new, complementary product offerings," said Chief Executive Geoff Carter. Sabre remains confident of providing an "attractive dividend for the year", the CEO said.
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Housebuilder Crest Nicholson has agreed to sell its 50% stake in Longcross Studio, a film studio in Longcross Garden Village, Surrey, and a parcel of associated land on the southern side of the side. The sale is to Longcross General Partner, an Aviva Investors company. Aviva is the existing joint venture partner for the scheme, and the pair continue to jointly own the remainder of Longcross Garden Village. "This transaction supports one of the group's five strategic priorities which is to utilise and maximise the value of its land portfolio," said Crest Nicholson. The proceeds from the sale are expected to deliver a one-off contribution in excess of GBP10 million to adjusted pretax profit for the 2021 financial year, with the receipt of around GBP45 million cash consideration by the end of the financial year.
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COMPANIES - MAIN MARKET AND AIM
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Marex Spectron Group said it is planning an initial public offering on the London Main Market. The London-based company provides a liquidity hub that connects clients to global energy, commodities and financial markets. It recorded adjusted operating profit of USD61.5 million on USD414.7 million in revenue in 2020. Marex is targetting a free float of at least 25% and eligibility for inclusion in FTSE indices. The IPO is being run by Goldman Sachs, JP Morgan, Barclays and Peel Hunt.
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Mailbox REIT, a single asset real estate investment trust that owns the Mailbox building in Birmingham, started trading on the IPSX Wholesale market. It is the first company to IPO on the International Property Securities Exchange. It raised GBP25.9 million from issuing shares at GBP1 each. This was 30.5% of its total. The building itself is valued at GBP181 million. IWG, which operates flexible offices in the building, took part in the IPO.
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Friday's Shareholder Meetings
Derwent London PLC - AGM
DigitalBox PLC - AGM
Greggs PLC - AGM
John Menzies PLC - AGM
JPMorgan American Investment Trust PLC - AGM
Kistos PLC - GM re acquisition of Tulip Oil Netherlands
Phoenix Group Holdings PLC - AGM
Sabre Insurance Group PLC - AGM
St James's Place PLC - AGM
Tasty PLC - AGM
Wheaton Precious Metals Corp - AGM
Wishbone Gold PLC - AGM
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By Tom Waite; thomaslwaite@alliancenews.com
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