Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Vistry agrees bid terms for Countryside
House builder Vistry LON:VTY has this morning announced that it has agreed takeover terms with peer Countryside Partnerships which it is to acquire in a combined cash and shares offer for £1.25 billion. The proposal has been endorsed by the directors of Countryside, whose shareholders would own 37% of the enlarged company should the deal complete. The Combination would create one of the country’s leading homebuilders, comprising a top tier housebuilder and a leading partnerships business, with synergies of at least £50m a year delivered by the end of year 2.
#2. New drill site announced for 88 Energy
88 Energy [LON:88E] has announced that it has selected its next drilling location in Alaska following the release of a seismic data set. Drilling is set to take place next year and regulatory approvals still need to be granted. The stock has been struggling since late March when results from a previous pilot well fell far short of expectations.
#3. Solid H1 for subsea rental provider Ashtead Technology
Ashtead Technology LON:AT., the AIM-listed subsea rental and solutions provider, has released half year results for the six months to 30th June. The company works with the global offshore energy sector, and notes revenues up by 28.5% whilst gross profits advanced 30.9%. Given the supply constraints seen in the energy sector, it’s perhaps no surprise that strong revenue growth has been seen, with the company notably reducing leverage from 1.8 to 0.9 and utilisation rising from 39% to 44%. With strong market fundamentals, the company expects to see FY22 performance at a minimum posting in line with market expectations.
