3.00pm: IWG soars after reports of bids for its digital business
IWG PLC (LSE:IWG) saw it shares surge today following a report that CVC Capital Partners has made an approach to buy its digital arm, The Instant Group.
Sky News reported that CVC, the private equity backer of Six Nations Rugby, has approached Britain's biggest serviced offices provider about a £1.5bn deal that could trigger a broader break-up of the group.
Banking sources said that Tim Rodber, The Instant Group's chief executive, had been marketing the business to a number of private equity firms in recent weeks following a string of unsolicited approaches.
Wells Fargo is said to have been hired to advise IWG on the potential disposal.
If a deal materialised at a valuation of around £1.5bn, that would be larger than the current market value of IWG, which has seen its shares more than halve during the last 12 months.
Shares soared 33.6% on the report.
11.12am: Appreciate soars after PayPoint's swoop
Shares in Appreciate Group PLC (LSE:APP) soared 59% after PayPoint PLC’s £83mln swoop for the Liverpool-based prepaid gift card and voucher provider.
In a cash and shares deal PayPoint will pay 33p cash and 0.019 in PayPoint shares for each shares in AIM-listed Appreciate.
Appreciate shareholders will also still receive a 0.8p interim dividend that now has been declared by Appreciate for the six months that ended 30 September.
But shares in PayPoint fell back, down 3.8%.
10.46am: Gaming companies higher after US ruling
Flutter Entertainment shares continued to hold firm after it claimed victory in a legal wrangle with Fox Corporation over FanDuel.
The betting group, which owns Paddy Power and Betfair, was 3.5% higher at 11,915p after an arbitration hearing indicated a current valuation of $22bn for Flutter’s US-based sports betting business.
Fox Corporation initiated the proceedings in April 2021, having argued that its 10-year option to acquire an 18.6% stake in FanDuel should be at the same price that Flutter picked up a 37% holding from Fastball Holdings in December 2020.
That deal implied a valuation of $11.2bn but the US tribunal determined a fair market value of $20bn plus a 5% annual carrying value adjustment.
Analysts at Peel Hunt commented: “Flutter’s view has prevailed, that the Fox option exercise price should be based on fair market value for FanDuel at 3 December 2020, deemed to be US$20bn (not the US$11bn to which we believe Fox aspired).”
Peel Hunt has a sum-of-the-parts valuation for FanDuel of US$19bn.
The news pulled shares in fellow gaming company, Entain PLC (LSE:ENT) higher as well.
The FTSE 100 listed group operates BetMGM, a a US joint venture with MGM Resorts.
10.00am: Frasers Group rises after launching £70mln buy-back
Frasers Group PLC (LSE:FRAS) was another early riser after announcing plans for a share buy-back of up to £70mln (10mln shares).
Frasers said it aims to reduce share capital via the one-month long buyback which is expected to be completed by 8 December, when it plans to release its half-year results.
On Friday, the group announced it had raised its stake in Hugo Boss while reports at the weekend suggested it was a potential bidder for Made.com.
Shares jumped 3.7% in early trading.
9.30am: Joules Group falls on funding worries
Shares in Joules Group tumbled around 20% after the ailing retailer said it is in talks with its founder over bridge financing as poor trading means its working capital position is below expectations.
According to a statement, the group said it was holding discussions with founder and product director Tom Joule and its lender over a bridge financing proposal to "enable continued progress" with ongoing re-financing plans.
If it is unable to attain this bridge financing, it will not be able to pay its short-term revolving debt facility of £5mln due on 30 November, it said.
AJ Bell investment director Russ Mould said: “The curse of the wrong type of weather has struck again, with Joules saying that sales of jumpers, coats and wellies have disappointed because the past few months have been relatively mild.”
“This is disastrous for Joules because it was already struggling and needs every possible penny hitting its tills to help put the business back on track.”
Mould suggested “The fact Next pulled out of investment talks in September with the retailer would suggest Joules could unwind as easily as a cat pulling yarns from a woolly jumper.”
“The clock is almost certainly ticking with regards to getting more cash through debt or an equity investment.”
“Next might have taken a page out of Mike Ashley’s playbook – wait in the wings in case the target goes into administration and then pick up the brand on the cheap. This strategy would mean Next doesn’t have to bother with the operating business and its associated problems" Mould said.