Market Tracker weekly round-up—2 November 2018

Weekly round-up of the latest corporate announcements, including secondary offers by Next Fifteen Communications Group plc and Restaurant Group plc, reorganisations by Location Sciences Group plc and Phoenix Group Holdings, joint ventures by TechFinancials Inc. and Footies Tech Limited and SIMEC Atlantis Energy and Development Agency for Normandy, a delisting of Kemin Resources plc, returns of value by Lancashire Holdings Limited and BHP Billiton plc and a LR/AIM Rules transaction from Restaurant Group plc.

The weekly round-up covers all deals announced within our statement of scope until 12 noon on the Friday of the previous week. Any deals announced after this time will be included in the following day's round-up.

All transactions covered in this update are available on the Market Tracker deal analysis tool containing over 4000 public company deal summaries.

The Market Tracker weekly bulletin looks in more detail at the latest transaction developments, mini trends and analysis of corporate deal documents. For trend reports and other analysis see our Trend Reports subtopic.

New deals announced:

Delistings

Announcement date Delisting company Industry sector Key information
26 October 2018 Kemin Resources plc Mining, metals & extraction Kemin Resources has announced that the company has been unable to find a replacement Nominated Advisor in the requisite time and resultantly will be delisted from AIM. The delisting will be effective from 7.00 a.m. on 29 October 2018. In order to provide liquidity to shareholders, J P Jenkins Ltd has been appointed to provide a dealing facility which will commence on 1 November 2018.

Joint ventures

Announcement date Deal Industry sector Key information
30 October 2018 TechFinancials Inc. and Footies Tech Limited Financial services TechFinancials announced that it has entered into non-binding heads of terms with Footies Tech to establish a new company subsidiary NewCo. TechFinancials will hold 75% of the shares of NewCo, and Footies Tech will hold 25% of the remaining shares.
TechFinancials and Footies Tech will establish the NewCo in an agreed jurisdiction, which is likely to be the United Kingdom.
Under the heads of terms, TechFinancials will commit to support the financial needs of NewCo with a cost cap of £390,000 (US$500,000) for the development of a proof of concept agreement between NewCo and a European football club, employees' salaries, administration costs, business development and other expenses.
30 October 2018 SIMEC Atlantis Energy and Development Agency for Normandy Energy & utilities SIMEC Atlantis Energy announced the formation of a joint venture company with Development Agency for Normandy, the regional agency for economic development in Normandy and regional investment fund Normandie Participations, for the purpose of developing a large-scale project in Raz Blanchard, Normandie.The joint venture company, Normandie Hydrolienne, will establish an operational presence in Normandy and SIMEC Atlantis Energy will hold a majority stake.

LR/AIM Rules transactions

Announcement date Company Industry sector Key information
30 October 2018 Restaurant Group plc Travel, hospitality, leisure & tourism Restaurant Group announced a Class 1 transaction under the Listing Rules.

Reorganisations

Announcement date Company Industry sector Key information
2 November 2018 Location Sciences Group plc Computing & IT Location Sciences Group has announced a proposed share consolidation whereby every 100 existing ordinary shares of 0.01 pence each will be consolidated into one new ordinary share of 1 pence each. The board is of the opinion that with shares of low denominations, small absolute movements in the share price can represent large percentage movements, resulting in volatility. Shareholder approval will be sought at a general meeting on 21 November.
2 November 2018 Phoenix Group Holdings Financial services Phoenix Group Holdings has announced an intention to introduce a new holding company. A new company incorporated in England & Wales will become the holding company of Phoenix Group Holdings and its consolidated subsidiaries. Shareholder approval will be sought at a general meeting on 28 November.

Returns of value to shareholders

Announcement date Company Industry sector Key information
1 November 2018 Lancashire Holdings Limited Financial services Lancashire Holdings has announced a special dividend of approximately £30.9 million ($40 million), equivalent to approximately 15.4 pence per share ($0.20 per share). The dividend will be paid on 12 December 2018 to shareholders on record on 9 November 2018.
31 October 2018 BHP Billiton plc Mining, metals & extraction BHP Billiton announced a shareholder return of up to approximately £8 billion ($10.4 billion). The return of value will constitute of an off-market buyback of approximately £4 billion BHP Billiton Ltd shares and a special dividend of approximately £4 billion. The funds for the special dividend are being provided through the company selling its onshore US assets. The share buyback programme will commence immediately and it is expected that the special dividend will be paid January 2019.

Secondary offers

Announcement date Issuer Industry sector Key information
1 November 2018 Next Fifteen Communications Group plc Media & telecommunications Next Fifteen announced its intention to undertake a non-preemptive cash placing to raise gross proceeds of up to £20 million.The placing will be used to fund the acquisition of Activate Marketing Services LLC, a B2B demand generation company based in San Francisco and New York.
30 October 2018 Restaurant Group plc Travel, hospitality, leisure & tourism Restaurant Group announced a rights issue to raise approximately £315 million of gross proceeds. The rights issue will be fully underwritten by J.P. Morgan Securities plc and Numis Securities Limited. The purpose of the rights issue is to fund the acquisition of Mabel Topco Limited, the holding company that owns and operates the Wagamama restaurant business.
Filed Under: Round-ups

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