UK Grocers Gain as Morrisons Bids Boost Sector Interest

U.K. grocers are among the biggest FTSE 100 risers after news emerged of takeover interest in FTSE 250-listed William Morrison Supermarkets from a third potential buyer. Marks & Spencer Group is up 3%, while Sainsbury's and Tesco also gain. The interest in Morrisons from SoftBank Group Corp.'s Fortress Investment Group and private-equity groups Clayton Dubilier & Rice and Apollo Global Management shows there is a big appetite for a bite of the U.K. supermarket sector, Hargreaves Lansdown says. "Sainsbury's is considered a possible target, given that billionaire Daniel Kretinsky, the owner of Vesa Equity Investment, has been building his stake in the company," HL analyst Susannah Streeter says. "M&S and Tesco also appear to be benefiting from this surge of interest." 


 
Companies News:

Intercede Group Says Connect Partner Programme Has Secured Six New Customers in 1Q

Intercede Group PLC said Monday that it has signed up six new customers in the quarter to June for its Connect Partner Programme, with orders totaling more than 600,000 pounds ($829,800).

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Diversified Energy, Oaktree Capital to Buy Tanos Energy Assets for $308 Mln

Diversified Energy Co. said Monday that together with Oaktree Capital Management, LP, it will acquire certain natural gas assets in Louisiana and Texas from Tanos Energy Holdings III LLC in a deal worth $308 million.

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Real Estate Investors Says 1H Rent Collection Was Strong

Real Estate Investors PLC said Monday that its rent collection for the first half of 2021 was strong, adding that it expects to see some recovery in its property valuations over 2021 and 2022, which will reduce its gearing.

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Lok 'N Store Performance Remains Strong

Lok 'n Store Group PLC said Monday that its performance has continued to be strong since it reported first-half results for fiscal 2021 in April, adding that it is opening three new stores due to open late in 2021 and early in 2022.

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Lithium Miner Bradda Head Seeks to Raise GBP6.2 Mln in London IPO

Bradda Head Holdings Ltd. said Monday that it intends to float in London and raise 6.2 million pounds ($8.6 million) to fund its lithium-exploration projects in the U.S.

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Wameja 2Q Average Transaction Value Improved

Wameja Ltd. said Monday that its average transaction value increased in the second quarter when compared with the previous quarter.

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ULS Technology Appoints Commercial and Technology Chiefs

ULS Technology PLC said Monday that it has appointed Simon McCulloch as chief commercial and growth officer, and Ed Mardell as chief technology officer.

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Saietta Group Plans to Raise GBP37.5 Mln at London IPO

Saietta Group PLC, a U.K. electric-motor engineering company, said on Monday that it expects to raise 37.5 million pounds ($51.9 million) at its initial public offering on London's AIM.

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Hipgnosis Songs FY 2021 Pretax Profit Rose, Raises Dividend Target

Hipgnosis Songs Fund Ltd. said Monday that pretax profit for fiscal 2021 rose and raised its dividend target.

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Apollo Considers Counterbid for U.K. Grocery Chain Morrisons

LONDON -- Apollo Global Management Inc. said Monday it is considering making a bid for U.K. grocery chain WM Morrison Supermarkets PLC, setting up a potential three-way bidding war with SoftBank Group Corp.'s Fortress Investment Group LLC and U.S. private-equity firm Clayton, Dubilier & Rice.

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NN Group to Acquire MetLife's Poland and Greek Businesses for EUR584 Mln

NN Group NV said Monday that it will acquire MetLife Inc.'s businesses in Poland and Greece for a total consideration of around 584 million euros ($692.9 million). 


 
Market Talk:

Biffa's Plastics-Recycling Business Should Drive Continued Future Growth

1014 GMT - Plastic recycling, alongside continued earnings recovery and the future consolidation of the waste-collections market, should drive continued future growth at Biffa, Berenberg says. Biffa's green investment opportunities are key to its equity story, the brokerage says, after a visit to the company's plastic bottle recycling facility in County Durham, England. Biffa has doubled its plastics recycling capacity since 2019, and this comes at an opportune moment given the U.K. plastics tax that will be imposed in April, Berenberg says. The brokerage has a buy rating on Biffa with a 370 pence target price.

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Porvair's 1H Results Prompt Slight Forecast Upgrades

1006 GMT - Porvair's strong interims have prompted Peel Hunt to slightly upgrade its full-year forecasts, but this leaves room for error in working through the various 2H challenges facing the filtration-solutions company. Peel Hunt upgrades estimates and forecasts for pretax profit to GBP12.6 million from GBP12.0 million, and EPS to 21.6 pence, from 20.6 pence. "With the latest, small acquisition earlier this year integrating well, and GBP6.2 million of net cash on the balance sheet, there could also be accretive external growth," the brokerage says. Peel Hunt rates the stock to buy with a 640 pence target price.

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UK Services PMI Suggests Cost of Living Set to Rise

0943 GMT - The cost of living in the U.K. is set to rise in coming months following a record increase in prices charged by service providers in June, CIPS says in a survey compiled with Markit. "With the sharpest escalation in price inflation for 25 years, it is no wonder businesses are concerned that they are paying substantially more for fuel, food and transport costs than they were a year ago," CIPS director Duncan Brock says. The June U.K. services purchasing managers' index was upwardly revised to 62.4 from an initial estimate of 61.7, down from 62.9 in May but still signalling growth in activity. Sterling is little changed after the data with GBP/USD last at 1.3857 and EUR/GBP at 0.8573.

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Consortium's $8.71 Bln Offer for Morrisons Seen as Setting Minimum Price

0938 GMT - A recommended offer of $8.71 billion, or 254 pence a share, from a consortium led by SoftBank Group's Fortress to buy U.K. grocer Wm. Morrison Supermarkets now seems to be the likely minimum and the eventual price could rise further, Barclays says. U.S. private-equity firm Clayton Dubilier & Rice last month approached Morrisons and there is nothing stopping other potential bidders from getting involved, Barclays says. "Just because Morrison directors have irrevocably committed to vote in favor of the proposal, this does not commit other shareholders to doing the same--so this agreed offer is not necessarily the end of the saga," analysts at the bank say. Shares in Morrisons jump 11% to 266.70 pence.

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Taylor Maritime Benefiting from Limited Global Shipping Fleet Growth

0935 GMT - Taylor Maritime Investments' fleet valuation has increased 11% to $349.7 million, driven by a 30% increase in net time charter rates since May, Liberum says. This valuation represents a significant uplift on both the valuation and purchase price outlined in May's IPO prospectus which put the dry bulk-shipping investment company's 23 seed assets at $289.9 million, with an aggregate purchase price of $264.1 million, the U.K. brokerage says. Soon after IPO it purchased two vessels at below 80% of depreciated replacement cost for $26.5 million. "The valuation uplift since IPO has been driven by constrained world fleet growth and strong demand for shipping capacity due to improving global economic conditions," the broker says.

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Harbour Energy Will Be Able to Reduce Debt Quickly as Energy Prices Rally

0933 GMT - Subject to its capital allocation priorities, Harbour Energy could reduce net debt to below $1 billion by the end of 2022, from the current level of $2.7 billion, Peel Hunt estimates after increasing its oil and gas price assumptions for this and next year. Higher energy prices could help Harbour achieve Ebitda of around $2.6 billion in 2021 and 2022, with free cash flow of $868 million this year and $1.1 billion next year, Peel Hunt believes. The U.K. brokerage raises its recommendation on Harbour to add from hold, and the target price to 472 pence from 424 pence. Harbour was formed in April from the merger between Premier Oil and Chrysaor Holdings. (

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Bidding War for Morrisons Could Get Even More Crowded

0918 GMT - Interest in buying Wm. Morrison Supermarkets shows the U.K. is attracting increased interest from overseas and the bidding fight for the grocery chain could get yet more crowded if Amazon enters the fray, Interactive Investor Richard Hunter says. Morrisons on Saturday agreed to an offer from a group of investors led by SoftBank Group's Fortress Investment Group, having last month rejected a proposal from Clayton Dubilier & Rice, and Apollo Global Management has confirmed it is considering a bid. "This could lead to a three-way bidding war, with some speculation that following on from its business relationship with Morrisons, Amazon could even emerge from left field as a surprise last minute entrant," Hunter says.

Contact: London NewsPlus, Dow Jones Newswires; +44-20-7842-931

(END) Dow Jones Newswires

07-05-21 0636ET