SMALL-CAP WINNERS & LOSERS: Palace Capital up on possible tender offer

Wed, 07th Feb 2024 09:18

(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Wednesday.

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SMALL-CAP - WINNERS

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Palace Capital PLC, up 4.8% at 223.31 pence, 12-month range 200.00p-265.00p. The investor in commercial real estate says it has exchanged or completed on the sale of three investment properties for GBP15.2 million. It adds that several properties are currently under offer which, if they all complete in the next few months, will provide the company with various options for returning capital to shareholders, including a tender offer. Chair Steven Owen says: "Against the backdrop of challenging property and financial markets, we have continued to progress our disposal and debt reduction strategy with the result that the company is in a strong financial position with the entire portfolio virtually unencumbered. It is expected that further progress regarding disposals and options for returning capital to shareholders, including a tender offer, will be announced in the coming months."

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Superdry PLC, up 4.7% at 45.35p, 12-month range 14.26p-135.80p. Shares in the clothing retailer continue to rise after more than doubling in Friday's session amid indications that takeover talks are heating up. On Wednesday, regulatory filings showed that Norwegian-based investment fund First Seagull bought a 5.3% stake in Superdry. On Friday, the Times reported that First Seagull considers Superdry "to be ripe for a bid". The newspaper added that Sycamore Partners, an American private equity company, and Authentic Brands Group LLC, which owns Ted Baker and Forever 21, are said to have Superdry on their radar. After market close on Friday, Sky News reported that Rcapital and Gordon Brothers have held initial talks with Chief Executive Julian Dunkerton about a bid to take Superdry private. Both specialise in investments in financially challenged companies.

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SMALL-CAP - LOSERS

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Phoenix Spree Deutschland Ltd, down 2.2% at 177.00p, 12-month range 149.00p-256.00p. The Berlin-focused residential real estate investor says that its portfolio valuation at December 31 was EUR675.6 million, down from EUR775.9 million a year earlier. Valuation per square metre fell to EUR3,598 from EUR4,082 a year earlier. "Whilst further valuation declines cannot be ruled out in 2024, recent developments on the outlook for interest rates have been positive, with a growing consensus that interest rates have peaked and are on a downward trend," Phoenix Spree Deutschland says.

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By Sophie Rose, Alliance News senior reporter

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