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(Alliance News) - The Irish government on Tuesday said it intends to sell part of the state's 71% stake in lender AIB Group through a trading plan managed by Merrill Lynch International.
Minister for Finance Paschal Donohoe has instructed the US investment bank to target a sale of up to, but no more than, 15% of the expected aggregate total trading volume in shares of AIB. The government said the total number of shares sold will depend on market conditions.
The programme will begin in mid-January and run for six months.
AIB has a market capitalisation of about EUR5.76 billion. The stock was up 0.1% in London early Tuesday.
In response, AIB welcomed the state's intention to further sell part of its shareholding in the company.
AIB Chief Executive Officer Colin Hunt said: "AIB owes the Irish taxpayer an immense debt of gratitude for its support during the financial crisis. The group's robust balance sheet, its digital capability and the scale of its operations means it will continue to play a key role in supporting the Irish economy and our customers. The focus of our strategy is to grow and strengthen the group to ensure we continue generating sustainable returns for all our shareholders."
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.9% at 7,262.61
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Hang Seng: up 1.1% at 23,001.72
Nikkei 225: closed up 2.1% at 28,517.59
S&P/ASX 200: closed up 0.9% at 7,355.00
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DJIA: closed down 433.28 points, or 1.2%, at 34,932.16
S&P 500: closed down 1.1% at 4,568.02
Nasdaq Composite: closed down 1.2% at 14,980.94
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EUR: down at USD1.1285 (USD1.1299)
GBP: flat at USD1.3219 (USD1.3221)
USD: up at JPY113.73 (JPY113.41)
Gold: down at USD1,791.15 per ounce (USD1,793.80)
Oil (Brent): up at USD72.20 a barrel (USD69.78)
(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
1600 CET EU flash consumer confidence indicator
1100 GMT UK CBI distributive trades survey
0855 EST US Johnson Redbook Retail Sales Index
1630 EST US API weekly statistical bulletin
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New restrictions are unlikely to stop Christmas celebrations in the UK this week but Prime Minister Boris Johnson has urged caution amid speculation further measures will be needed to halt the spread of the Omicron variant. But as Johnson promised to keep the data under constant review, the Queen abandoned her Christmas at Sandringham and London Mayor Sadiq Khan cancelled the capital's New Year's Eve celebrations. After a special two-hour meeting of the Cabinet on Monday, the prime minister said the government needs to be clearer about the rate of hospital admissions associated with Omicron, and the effectiveness of vaccines against it, before imposing additional measures in England to prevent the spread of the virus. But Johnson said the government will "reserve the possibility" of implementing new restrictions, causing opposition politicians to accuse him of lacking a clear plan.
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UK government borrowing declined in November, the latest figures from the Office for National Statistics showed, though the figures came amid new calls for government support of people and industries hurt by recently imposed restrictions to combat the Omicron variant of Covid-19. UK public sector net borrowing - excluding public sector banks - was estimated to have been GBP17.4 billion in November, falling 7.4% from GBP18.8 billion in October. The figure was higher than the market forecast of GBP16 billion and was the second-highest November borrowing since monthly records began in 1993.
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BROKER RATING CHANGES
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BARCLAYS RAISES RECKITT PRICE TARGET TO 9,400 (8,900) PENCE - 'OVERWEIGHT'
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GOLDMAN SACHS RAISES INTERCONTINENTAL HOTELS PRICE TARGET TO 5,200 (5,000) PENCE - NEUTRAL
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PEEL HUNT INITIATES TUI WITH 'HOLD' - TARGET 210 PENCE
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COMPANIES - FTSE 100
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Asset manager Schroders has bought a stake in a renewable infrastructure investment manager. Schroders confirmed it reached agreement to acquire a 75% shareholding in Greencoat Capital Holdings for an initial GBP358 million. Last week, Schroders had said that it was in advanced talks with Greencoat Capital LLP to buy a significant stake in the business. The London-based money manager highlighted that Greencoat is one of Europe's largest renewable infrastructure managers, with GBP6.7 billion of assets under management at November 30. Schroders said the deal includes a potential earn out, payable three years after completion, which is subject to stretch revenue targets and the continued employment of the senior management team in the Greencoat business. It is capped at GBP120 million. The purchase price will be settled in cash. Schroders explained: "Providing private capital for the energy transition required to achieve a net zero future will become increasingly important as governments around the world look to accelerate towards this goal. This is an area where we can support one of the most significant transformations required in economies worldwide to mitigate climate change. In addition, there is strong investor demand for such long-duration assets providing long-term secure income streams."
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Miner BHP Group said it has received full regulatory approval for corporate structure unification under its existing Australian parent company, BHP Group Ltd. Shareholder votes will be held on January 20, and the unification is expected to complete on January 31. The unified company will have its primary listing in Sydney, rather than London.
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COMPANIES - FTSE 250
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Casino operator Rank Group has poached its new finance chief from estate agent Foxtons. Rank said it has appointed Richard Harris as chief financial officer and board director, with effect from May 1. Harris will join Rank from estate agent Foxtons, where he has been CFO June 2019. He previously spent 11 years at retailer Marks & Spencer in a number of senior finance roles. In response, Foxtons said it has promoted Chris Hough to CFO and executive director. Hough currently is director of finance and company secretary, having joined Foxtons in May 2019. Harris will remain with Foxtons until April to ensure an orderly handover to Hough, Foxtons said.
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COMPANIES - MAIN MARKET AND AIM
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All Things Considered Group started trading on the Aquis Stock Exchange in London on Monday, having raised GBP4.2 million in its initial public offering. ATC is music company that offers talent management, live booking and livestreaming services. It will have a GBP14.7 million market capitalisation at its IPO price of 153 pence per share.
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COMPANIES - GLOBAL
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Sanofi has agreed to acquire T-cell cancer therapies developer Amunix Pharmaceuticals for an initial USD1 billion. The deal supports the Paris-based drug firm's aim to expand its oncology offering. It may fork out an extra USD225 million for San Francisco, California-based Amunix, contingent on future development milestones. "Amunix's pipeline, which includes lead candidate, AMX-818, a masked HER2-directed TCE, offers a strong strategic fit with Sanofi's focus on developing potentially transformative cancer therapies in immuno-oncology," Sanofi said. Amunix's backers include BlackRock and Janus Henderson Investors.
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Tuesday's shareholder meetings
Aura Energy Ltd - AGM
Go-Ahead Group PLC - AGM
Lekoil Ltd - AGM
Northamber PLC - AGM
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By Tom Waite; thomaslwaite@alliancenews.com
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