Maitland/amo Morning Monitor – Friday 24 June 2022

24th June 2022

In the news

  • Boris Johnson has woken up to the resignation of his party chairman, Oliver Dowden, following a catastrophic night during which the Conservatives got thrashed in both Wakefield and the hitherto true-blue seat of Tiverton and Honiton.
  • UK travel chaos is set to widen this summer, after British Airways staff voted to strike during the school holidays and talks to avoid further railway strikes broke down again.
  • The prime minister will relax and reduce the amount of biofuel used in the UK, despite it being a key part of his Government's net zero ambitions, amid concerns that the initiative could contribute to the cost of living crisis.
  • The auction for High Street chemist Boots, which has rumbled on for six months, has become increasingly fractious as banks try to find a way to fund the multi-billion-pound transaction.

Politics today

  • The Houses of Parliament are not sitting today.

Stock market moves

  • In the US, the S&P 500 rose 0.95%, while the Nasdaq 100 rose 1.47%.
  • In Asia, Japan’s Topix index was up 0.81%, South Korea’s Kospi index gained 2.36%, Hong Kong’s Hang Seng Index rose 2.21% and Shanghai Composite Index rose 1.03%.
  • In Europe, the FTSE 100 is trading up 0.44% in the early hours of the morning.

Corporate announcements

* Maitland Client

Barclays PLC Acquisition of Kensington Mortgage Company
  • Barclays PLC announced that Barclays Bank UK PLC  has agreed to acquire UK specialist mortgage lender Kensington Mortgage Company Limited from companies controlled by funds managed by Blackstone Tactical Opportunities Advisors L.L.C. and funds affiliated with Sixth Street Partners LLC.
  • The acquisition will enable Barclays to broaden its product offering and capabilities in the UK mortgage market, extend the number of customers we can serve and grow mortgage originations to better utilise our strong UK funding base.
  • Alongside acquiring KMC, Barclays Bank UK has also agreed to acquire a portfolio of UK mortgages consisting primarily of mortgages originated by KMC from October 2021 to completion of the acquisition of KMC .
  • Matt Hammerstein, CEO, said: “The Transaction reinforces our commitment to the UK residential mortgage market and presents an exciting opportunity to broaden our product range and capabilities. KMC is a best-in-class specialist mortgage lender with an established track record in the UK market, strong broker and customer relationships and data analytics capabilities. KMC complements our existing UK mortgage business and broker relationships through the addition of a specialist prime mortgage originator and the utilisation of our strong UK funding base. The Transaction should generate attractive returns for Barclays over the medium term as the KMC Mortgage Portfolio increases in size through the ongoing origination of new mortgages. We look forward to KMC management and employees becoming part of the Barclays group.”
HgCapital Trust PLC HGT Board note agreement on acquisition of Ideagen
  • On 9 May 2022, the boards of Bidco and Ideagen announced that they had reached agreement on the terms of a recommended cash offer pursuant to which Bidco, a newly-incorporated wholly-owned subsidiary of funds managed by Hg Pooled Management, a leading software and services investor, will acquire the entire issued and to be issued ordinary share capital of Ideagen.
  • The Acquisition is being implemented by means of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006.
  • Ideagen announces that the Court Meeting to consider the Scheme and the General Meeting to consider the Special Resolution relating to the Acquisition were each held on 23 June 2022.
  • During the meeting, all resolutions were approved by the requisite majorities.
Auto Trader Group PLC Annual Financial Report and Notice of AGM
  • Auto Trader Group PLC, the UK’s largest digital automotive marketplace, has posted its Annual Report and Financial Statements for the year ended 31 March 2022 to shareholders.
  • The Company also announced that its 2022 Annual General Meeting will be held at 10:00am on Thursday 15th September 2022.
  • The meeting will be held at the Company’s registered office: 4th Floor, 1 Tony Wilson Place, Manchester M15 4FN, United Kingdom.