Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. John Menzies directors accept final NAS offer
John Menzies [LON:MNZS], the newsagent turned aircraft handler, has this morning issued a statement saying that a final revised offer from a suitor has now arrived and management are prepared to back it unanimously. The offer of 608p per share is just 3p higher than the previous bid, but given the challenging market conditions facing the sector and the lacklustre performance of the company’s stock even before the pandemic hit, there’s arguably plenty to justify the move. Shares closed at 581p on Friday.
#2. 88 Energy Texas acquisition to give immediate cashflow
Investors may be waiting for news out of Alaska from 88 Energy [LON:88E], but today’s update flags a 73% acquisition of an interest in Texas. The acquisition – for a total consideration of almost $10m – yields immediate cashflows and is the first step by the company into buying up other producing assets, enabling it to build a more diverse portfolio.
#3. US-listed peer makes upbeat offer for Clipper Logistics
More M&A news, this time from Clipper Logistics [LON:CLG] whose board are set to recommend an offer which has been made by GXO Logistics. The cash and equity deal implies a valuation of 920p per share and is seen as bringing together two strong partners with a strong cultural fit. Plenty of synergies there and although there may be some concern amongst US listed GXO’s shareholders over the bid premium – Clipper closed at 777p on Friday – with the target being around 1/10th of the size of the suitor, downside could be limited.
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