Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Volex bids for TT Electronics as target trades at 10 year low
M&A activity continues to pick up again hinting at a resurgence in market confidence with Volex Group LON:TTG announcing this morning that they have now made two bid approaches to TT Electronics. The latest combined cash and shares offer valued the target at a 76.7% premium to last night’s closing price for TTG, but the board is refusing to engage.
Volex believe there are significant economies of scale to be had with such a merger, adding that TT Electronics’ share price is now trading at a 10 year low, reflecting the market’s view of recent management mis-steps. The clock is now ticking for the takeover and the response from TT Electronics board will be keenly awaited.
#2. Ilika trading update sets scene for January interim results
The solid-state battery manufacturer Ilika LON:IKA published a trading update this morning ahead of half year results which are due for release in late January. Critically this note is setting the scene for a 25% reduction in revenues owing to the timing of grant funded projects, whilst EBITDA losses are set to be unchanged from the comparative.
#3. Helium One drill permits approved for part-owned Colorado site venture
Helium One LON:HE1 has this morning provided an update on a project operated by a partner in Colorado, noting that drilling licenses have now been approved. Helium One owns a 50% share in the site and plans are to start drilling this quarter, with five additional wells being permitted.
