Sausage maker’s shares sizzle amid merger mania
INVESTORS were given an end-of-week boost amid a slew of takeovers on the London stock exchange.
The trading session was jampacked with merger and acquisition mayhem as sausage casings maker Devro rocketed 62pc, or 119p, to 311p following a bid from one of Germany’s largest agricultural groups.
Saria – part of the Rethmann family empire – offered 316.1p a share (or £667m) for Devro, which was a 65pc premium to its closing price on thursday.
Peel Hunt described the offer as a ‘ knock- out’, while AJ Bell labelled it ‘very generous’.
Saria said Devro would complement its van Hessen sausage casings business and allow customers to access a wider market. the German group employs around 10,500 staff across 26 countries.
Devro chairman steve Good said: ‘ We believe that saria’s understanding of our markets, its strong financial position and the cultural fit will benefit the group’s business and employees. Devro directors have agreed unanimously to recommend that Devro’s shareholders accept the offer from saria.’
But that wasn’t the only deal of the day. Curtis Banks joined in the party and confirmed it was in ‘advanced discussions’ on falling into the hands of a digital investment platform provider. nucleus said it was mulling a possible cash offer for the self-invested personal pension providers.
Curtis Banks, which floated at 190p in May 2015, surged 25.7pc, or 68p, to 333p.
the FTSE 100 rose by 0.2pc, or 20.07 points, to 7486.67 while the
FTSE 250 edged up 0.03pc, or 5.36 points, to 19,545.70. Housebuilders sank into the red following a bleak forecast.
Berenberg said it cut profit forecasts for the sector by around 40pc because of soaring mortgage costs. the broker also slashed the target price for most stocks, with housebuilder Taylor Wimpey taking the biggest hit after shares fell 1pc, or 1.05p, to 104p.
Imperial Brands added 1.2pc, or 26p, to 2126p after Deutsche Bank hiked the tobacco firm’s target price to 2325p from 2250p and reiterated a ‘buy’ rating.
Cigarette sellers did well during the pandemic as people working from home found more time to indulge their habit.
Meanwhile JD Sports will overhaul its pay policy after repeated shareholder revolts under controversial former boss Peter Cowgill.
The retailer will place greater emphasis on share-based payouts for bosses, rather than the hefty cash incentives paid out under Cowgill. It slipped 0.9pc, or 1.15p, to 124.55p.
Sofa seller ScS cheered a recent turnaround in fortune after orders, which plunged 14.4pc between July 31 and october 6, rose 1.3pc in the six weeks to the middle of november. It also launched a new share buyback programme worth up to £3.1m, and the stock rose 10.7pc, or 15p, to 155p.
But LSL Property Services left investors spooked after warning the most profitable part of its business could be dragged down by a weaker mortgage market next year. It slumped 9.9pc, or 26p, to 236p.
Breedon rose 5.9pc, or 3.4p, to 60.6p after the construction supplier said it was on course for a record profit this year. revenue in the ten months to october soared 14pc to £1.19bn.
And in a rare win for the London stock market, Conviction Life sciences Company plans to float at 100p a share in a £100m listing later this year.
The newly formed investment firm said many life sciences and medical technology businesses in the UK, europe and Australia are ‘structurally undervalued’.