(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.
----------
FTSE 100 - WINNERS
----------
NMC Health, up 3.6%. The UAE-focused private healthcare operator said it will respond to Muddy Waters Capital's "unfounded" claims in due course. Muddy Waters, which was founded by short-seller Carson Block, on Tuesday said: "We have serious doubts about the company's financial statements, including its asset values, cash balance, reported profit, and reported debt levels." On Tuesday, the stock closed down a massive 32%. NMC on Wednesday said it "understands" its regulatory disclosure obligations and "has nothing to add to disclosures already made". The company added that it has already responded to many of the allegations made in the report over the past 12 months.
----------
Pearson, up 2.7%. The education publisher said it has agreed to sell the remaining 25% stake in Penguin Random House for USD675 million, part of which will be distributed to shareholders. Person's stake in the book publisher will be sold to Bertelsmann SE & Co, which currently holds the other 75%. This transaction values the Penguin venture at an enterprise value of USD3.67 billion, compared with the USD3.55 billion enterprise valuation in 2017, when Pearson sold a 22% stake in the joint venture. The transaction is in line with Pearson's company simplification strategy, it said, and is expected to close in the first half of 2020. With the cash, Pearson proposed a GBP350 million share buyback, which is expected to start in early 2020, it said. Additionally, Pearson said Chief Executive John Fallon intends to retire in 2020, once a successor has been appointed. "It is probably no surprise that the market isn't shedding too many tears over Fallon's impending retirement and news of a capital return from the proceeds of the Penguin Random House sale should please investors," said AJ Bell's Russ Mould.
----------
FTSE 100 - LOSERS
----------
Meggitt, down 3.0%. Panmure Gordon started coverage on the aerospace and defence company with a Sell rating.
----------
FTSE 250 - WINNERS
----------
Cairn Energy, up 5.0%. The oil and gas explorer was raised to Overweight from Equal Weight by Morgan Stanley.
----------
Senior, up 3.2%. Panmure Gordon started coverage on the engineer with a Buy rating.
----------
FTSE 250 - LOSERS
----------
Shaftesbury, down 3.0%. The London West End-focused property company entered into an agreement to let almost half of its 72 Broadwick Street in London commercial space to Equinox, which operates luxury fitness clubs. Shaftesbury said it will let 32,000 square feet of the 66,000 square feet space to Equinox, which also offers yoga studios and has a hotel in New York. The space will be handed over to Equinox by the end of 2020. The remaining space in the refurbishment scheme located in Carnaby Street area of Soho in London is expected to be completed in spring 2021 and will deliver 15 apartments available to let upon completion.
----------
Derwent London, down 2.8%. Deutsche Bank cut the property developer to Hold from Buy.
----------
OTHER MAIN MARKET AND AIM - WINNERS
----------
Hansteen Holdings, up 11% at 117.43 pence. The industrial property portfolio manager has agreed to a GBP500 million private equity takeover. Hansteen has accepted a 116.5 pence per share bid from Potter UK Bidco, a company indirectly owned by investment funds advised by affiliates of US-based private equity firm Blackstone Group. Blackstone bid is a 10% premium to Hansteen's closing price in London on Tuesday of 105.6p, and an 18% premium to the volume-weighted average price for the three months to Tuesday of 98.7p. Some 75% of shareholders need to approve the deal, Hansteen said, with a meeting expected to be called for early February. Hansteen would then expect the takeover to complete during the first quarter.
----------
OTHER MAIN MARKET AND AIM - LOSERS
----------
Staffline Group, down 23%. The recruiter expressed optimism for the year ahead despite its performance being below expectations so far in 2019. Staffline said it expects to deliver adjusted operating profit - which excludes interest, tax and non-underlying charges - of between GBP10 million and GBP12 million for 2019. A year ago, the AIM-listed company generated underlying pretax profit - which excludes amortisation of intangible assets arising on business combinations and other exceptional costs - of GBP36.0 million. Staffline explained that it has identified accounting errors in its 2018 results, relating to costs which were not correctly booked. The company said this had led to a GBP4 million overstatement of profit. Whilst trading in December has improved, Staffline said, it is still below expectations.
----------
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
Pearson (PSON)
Senior (SNR)
Staffline (STAF)
Capricorn Energy PLC (CNE)
Derwent London (DLN)