Maitland/AMO Morning Monitor – Tuesday 29 June 2021

29th June 2021

In the news

  • Some Binance customers have lost the ability to withdraw and deposit pounds three days after the FCA banned it from operating in the UK.
  • In the US, a judge has dismissed two antitrust lawsuits against Facebook, one filed by the Federal Trade Commission and another by a coalition of US states.
  • UK house prices have risen at the fastest pace since 2004, rising 13.4% according to the UK Nationwide house price index.
  • The largest US banks have announced plans to pay investors an extra $2bn of dividends next quarter after the Federal Reserve loosened pay-out restrictions.

Politics today

  • New Health Secretary ,Sajid Javid, last night signalled it’s full steam ahead to an “irreversible” end to coronavirus restrictions on July 19 despite the exponential rise in case numbers.
  • The House of Common sits from 11:30 am with justice questions followed by three urgent questions- one from the SNP’s Ian Blackford on emergency COVID contracts, another from Shadow Transport Secretary Jim McMahon on international travel and a third from Labour’s Paul Blomfield on the EU Settlement Scheme.
  • The House of Lords sits from noon with questions on gambling reform, waiting lists for hospital treatment and the climate change committee’s most recent report.

Stock market moves

  • In Asia, Japan’s Topix fell 0.9% while Hong Kong’s Hang Seng retreated 0.8% and China’s Shanghai Composite was down 0.8%.
  • In the US,  the S&P 500 rose 0.2% while the Nasdaq 100 rose 1.3%.
  • In Europe, the FTSE 100 is up 0.2% while the STOXX 600 is down 0.6% in the early hours of trading.
  • West Texas Intermediate crude was at $72.79 a barrel, down 0.2%

Corporate announcements

* Maitland Client

Standard Life Aberdeen PLC Sale of shares in HDFC Life
  • The Company announces that, SLMH06, a wholly-owned subsidiary of the Company, sold 100,845,104 shares in HDFC Life on the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited.
  • The Shares were sold at an average price of Rs 672.68  which will result in SLMH06 receiving approximately Rs 67.3bn (£652m), net of taxes and expenses, from the sale.
  • The Shares sold constituted 4.99% of the paid-up, issued equity share capital of HDFC Life and SLMH06’s remaining shareholding in HDFC Life is now 3.89%, based on the paid-up, issued equity share capital. 
Barratt Developments PLC Barratt Developments PLC CFO Appointment
  • The Group announce the appointment of Mike Scott as an Executive Director and CFO.
  • The date he will join Barratt is currently being finalised and will be announced in due course.
  • Mike Scott, who is currently the Chief Financial Officer of Countryside Properties PLC, has extensive experience in the housebuilding sector, having joined Countryside as Group Financial Controller in 2014.
  • John Allan, Chairman, said: “Mike will work closely with our experienced management team to reinforce Barratt’s position as the country’s leading housebuilder, whilst driving further value creation through a continued focus on our medium-term targets.”
Chrysalis Investments Limited Portfolio Update
  • The Group announces that its Investment Adviser, Jupiter Investment Management Limited has entered into a cornerstone investment agreement with Revolution Beauty Group PLC as part of its expected IPO.
  • The Group anticipates investing approximately £45m.
  • Chrysalis has the ability to invest up to 20% of gross assets in companies it has not held prior to IPO, calculated at the point of investment.
  • Nick Williamson and Richard Watts, Co-Portfolio Managers, said: “With a small market share in a huge market and a compelling customer proposition, we believe Revolution Beauty is well placed to grow aggressively in the years ahead.”
Countryside Properties PLC Countryside – Board Change
  • The Group announces that Mike Scott, CFO, has resigned in order to take up the role of CFO at Barratt Developments PLC.
  • The Board is commencing a search for his successor and the Company will confirm Mike’s leaving date in due course.
  • Iain McPherson, CEO, said: “We will continue to work closely with Mike to ensure a smooth transition and wish him all the best in his new role.”
  • Mike Scott, CFO, said: “It has been a privilege to have been part of the Countryside team as the Group has grown rapidly over the past few years.”
John Laing Group PLC Investment Update
  • The Group announces that it has committed to invest an additional US$14m  to increase its shareholding in the Denver Eagle P3 project in Denver, Colorado from 45% to 50%.
  • Since investing in Denver Eagle, John Laing has played an active role in the delivery of the project through construction and entirely into operations in 2019.
  • Despite the COVID-19 pandemic, Denver Eagle has continued to perform well and has held the highest level of commuter rail ridership retention in the United States throughout the pandemic.
  • Anthony Phillips, Co-Head of PPP and Greenfield Projects of John Laing, said: “This highly attractive asset has proven to be a piece of critical infrastructure for the local communities of Denver. We welcome this opportunity to increase our stake in an asset in which we see continued potential value and significant growth opportunities.”
UDG Healthcare Public Limited Co. Increased and Final Recommended Cash Offer
  • On 12 May 2021, the Board of UDG Healthcare plc and the Board of Bidco announced that they had reached agreement on the terms of a cash offer.
  • The Board of UDG and the Board of Bidco announce that they have reached agreement on the terms of an increased and final recommended cash offer at an increased price of 1,080 pence per UDG Share.
  • The Increased Final Offer represents an increase of 57 pence in cash for each UDG Share as compared to the original offer price of 1,023 pence in cash for each UDG Share;
  • The Increased Final Offer represents an implied enterprise value multiple of approximately 17.8x UDG’s adjusted EBITDA of $228m.