Merlin makes a splash on Sea World takeover talk
MERLIN Entertainments soared to the top of the FTSE 100 yesterday amid rumours it had put in a bid for part of Sea World’s business in Florida.
The firm, which owns the London Eye and Madame Tussauds, has reportedly made an offer for the Busch Gardens theme parks.
Busch Gardens is an Africanthemed animal park located in the city of Tampa. It houses eight rollercoasters, two water rides and animal attractions.
It is understood that Merlin Entertainments, which owns the Alton Towers and Thorpe Park theme parks in the UK, is bidding for the safari park rather than Sea World’s more famous marine parks because they conflict with its corporate policy that prohibits the use of whales and dolphins in its properties.
If the deal is successful, it would be the first time Merlin has been involved in any real merger and acquisition activity since it floated on the London Stock Exchange four years ago.
It would also allow the theme park operator to power ahead with its strategy to expand internationally as it copes with a drop in footfall across its attractions in the UK following terrorist attacks in London and Manchester.
Merlin finished up 3.4pc, or 15.4p, at 463.8p as investors welcomed the speculation.
The FTSE 100 finished up 0.5pc, or 40.41 points, at 7507.99. The
FTSE 250 finished up 0.3pc, or 59.09 points, at 20088.51.
The merger of John Wood and Amec Foster Wheeler was given final approval during a hearing in the High Court yesterday. The win was enough to send shares in John Wood up 4pc, or 28p, to 728p and shares in Amec Foster Wheeler up 4.1pc, or 21.5p, to 545.5p.
Tesco chairman John Allan issued a vote of confidence in the grocer by snapping up £38,000 worth of shares. Apparently buoyed by news that the firm had turned a corner after an accounting scandal hammered its shares in 2014, the 69-year-old purchased 20,000 shares at £1.90 each.
Tesco announced it would be paying shareholders a dividend of 1p per share on Wednesday after posting an increase in its bottom line. Shares were up 1.5pc, or 2.65p, to 186.6p. Skin health specialist Skin Bio
Therapeutics listed on AIM for £4.5m in April in order to fund the development of products, including treatments for conditions such as eczema. It said its Skin Biotix product is progressing well and that it is starting discussions with third parties.
Cath O’Neill, chief executive, said: ‘This has been a significant year for the company; from creating the infrastructure and team to support the growth and development of the company, to the scientific progress around our skin platform, Skin Biotix.
‘During the year we have demonstrated three significant properties – barrier improvement, antiinfection and repair – which form the foundations of our three development programmes. Operationally, we have made a good start to the new financial year.’
Despite the results, shares remained flat at 10.12p.
US firm Hemogenyx listed on the main market yesterday following its takeover by Silver Falcon for £8m last month.
The company is developing therapies to transform bone marrow and blood stem cell transplant treatments, a move it claims could replace the need for chemotherapy and radiation.
It reverse listed under its new name Hemogenyx Pharmaceuticals. Shares fell 30pc to 2.62p, below its 3.5p placing price as long- term investors took the opportunity to cash out, having been locked in since Christmas 2015 when shares were suspended.