Early premarket gappers
- Gapping up:
- GOEV +22.8%, GLSI +10.3%, WPRT +6.9%, ALLG +4.1%, COHU +3.5%, CLVT +3%, CANO +2.9%, AJRD +2.3%, PLAY +2.2%, GTE +1.8%, GATO +1.5%, CPRX +1.2%, UNVR +1%, PEP +0.9%, VSTO +0.7%, GME +0.7%
- Gapping down:
- FULC -12.7%, GPS -7%, PLRX -5.7%, FLR -4.1%, PSMT -4%, VOXX -3%, BKD -2%, IIVI -1.7%, FTAI -1.5%, NVAX -1.3%, NDAQ -1%
Serica Energy board rejects £1bn bid from smaller oil and gas rival Kistos
Cash-and-shares offer comes from company led by North Sea dealmaker Andrew Austin
A UK oil and gas company led by the North Sea dealmaker Andrew Austin has made a cash-and-shares offer valued at more than £1bn for its bigger rival Serica Energy.
Serica’s board rejected the bid.
Kistos, set up by Austin after selling his previous company RockRose Energy for £250mn in 2020, said on Tuesday that it first approached Serica in May about the merits of joining the two North Sea-focused companies but had repeatedly been rebuffed.
It has now gone public with its offer, valued at 382p per share, in the hope that Serica shareholders will encourage its board to engage with Kistos about the proposed combination.
Under the terms of Kistos’s offer, Serica shareholders would receive 0.2932 new Kistos shares plus cash of 246p for each of their existing shares. The offer represents a 25 per cent premium to Serica’s closing price of 305p on Monday.
Serica shares rose nearly 12 per cent in early Tuesday trading in London to 340p while those in Kistos edged up 0.5 per cent to 465p on Tuesday.
Serica’s share price has suffered recently after the UK government introduced a 25 per cent windfall tax on oil and gas producers’ profits, which raised their headline rate from 40 per cent to 65 per cent.
Since floating in London at 100p a share in November 2020, Kistos has made two acquisitions in UK and Dutch waters. The latest was a $125mn-plus deal for a 20 per cent stake in a group of gasfields north-west of the Shetland Islands from the French major TotalEnergies.
Kistos, which has a market capitalisation of £384mn versus Serica’s £829mn, said a combination of the two companies would create a “leading independent North Sea champion” that could act as a consolidator in the region.
There has been a significant changing of the guard in the North Sea since 2014 when a number of oil majors and utilities retreated or sold down their portfolios to focus on lower-cost regions elsewhere, or to invest in clean energy technologies.
Kistos believes a combined group would gain admission to London’s FTSE 250 index.
>>> Up
* ABN AMRO GDRs Raised to Add at AlphaValue/Baader
* Amadeus Raised to Outperform at Renta 4; PT 63.50 euros (+)
* Dufry Raised to Add at Baader Helvea; PT 36 Swiss francs (+)
* Kinnevik Raised to Hold at SEB Equities; PT 150 kronor
* Klepierre Raised to Buy at Goldman; PT 21.80 euros
* Merlin Properties Raised to Neutral at Goldman; PT 10 euros
* Shell Raised to Buy at ING; PT 2,329.04 pence
* Tinybuild Raised to Buy at Numis; PT 180 pence (+)
* Topdanmark Raised to Hold at SEB Equities; PT 380 kroner
* Wihlborgs Raised to Hold at Handelsbanken
>>> Down
* Arkema Cut to Underweight at JPMorgan; PT 82.50 euros
* Abrdn European Logistics Cut to Sector Perform at RBC
* Atos Cut to Sell at Stifel; PT 9 euros
* Autogrill Cut to Hold at Stifel; PT 6.90 euros
* Avanza Cut to Underweight at JPMorgan; PT 142 kronor
* British Land Cut to Underperform at RBC; PT 375 pence
* Empiric Student Cut to Sector Perform at RBC; PT 85 pence
* Epiroc Cut to Sell at SocGen; PT 155 kronor
* Gap Cut to Equal-Weight at Wells Fargo; PT $10
* Grand City Properties Cut to Neutral at Goldman; PT 14.40 euros
* Great Portland Cut to Neutral at Goldman; PT 600 pence
* Hammerson Cut to Underperform at RBC; PT 17 pence
* Kojamo Cut to Sell at Goldman; PT 11.30 euros
* Land Sec. Cut to Sector Perform at RBC; PT 675 pence
* Mowi Cut to Equal-Weight at Barclays; PT 275 kroner
* Nordnet Cut to Neutral at JPMorgan; PT 125 kronor
* Salmar Cut to Underweight at Barclays; PT 639 kroner
* Sandvik Cut to Hold at SocGen; PT 190 kronor
* Unibail Cut to Underperform at RBC; PT 42 euros
* Warehouse Cut to Underperform at RBC; PT 120 pence
* Wavestone Cut to Neutral at Oddo BHF; PT 53 euros
* WDP Cut to Underperform at RBC; PT 25 euros
>>> Initiation
* Burkhalter Resumed Market Perform at ZKB (+)
* Devolver Digital Rated New Buy at Liberum; PT 85 pence
* Peach Property Rated New Add at Baader Helvea
* UMG Rated New Hold at Intesa Sanpaolo; PT 20.30 euros (+)
* Vonovia Maintained at Outperform at RBC; PT 40 euros
* Yu Group Rated New Buy at Liberum; PT 500 pence (+)
>>> Call
* BASF 2Q Strong, Market May Pay Little Attention: Morgan Stanley
* EDF Shares Should React Well to Nationalization Price Report: MS
* JPMorgan’s Kolanovic Hedges Risk-On Wager, Cuts Corporate Debt
* Molten Ventures Falls; Berenberg Cuts PT Yet Says Stock Is Cheap
* Plus500 Delivers Another ‘Outstanding’ Performance, Liberum Says (+)
* RBC Downgrades Eight Property Stocks on Weakening Backdrop
* Wincanton Update Reassuring, Revenue Growth Continues: Liberum
* Zur Rose Downgraded and PT Slashed at Deutsche Bank on Cash Burn
Wefox gains $4.5bn valuation in face of insurtech sell-off
German company follows US cyber insurer Coalition in bucking brutal reckoning for start-ups
Germany’s wefox has sealed a fresh round of funds in a deal that lifts its valuation to $4.5bn from $3bn last year, with the insurance start-up saying it is going “all in” against a souring backdrop for the sector.
The funding round comes just a week after Coalition, a privately held US cyber insurer, secured a beefed-up $5bn valuation in its latest fundraising.
The rise in valuation for the two companies — and their return to tap investors after fundraising deals just last year — is all the more notable after a brutal reckoning for insurance start-ups, or insurtechs.
High-profile publicly traded groups have lost billions of dollars in value, forcing some into cost-cutting mode. Private markets have also slowed down markedly.
Wefox, which was founded in 2015, operates a platform model that connects insurers via a network of agents to more than 2mn customers.
Its $400mn round follows a $650mn fundraising last year. Comprising equity and debt, the latest round was led by Mubadala, the Abu Dhabi sovereign investment fund that first invested in the start-up three years ago. Other investors including Omers Ventures, an arm of the Canadian pension fund, also participated.
Julian Teicke, wefox founder and chief executive, said it would use the funds to expand more aggressively at a time when souring conditions force direct-to-consumer insurers to pull back. “Many of the market players are now holding back and we can go all in,” he added.
The rising valuation, he argued, vindicates a decision to operate through intermediaries, meaning wefox does not have the big upfront costs of rival insurtechs that sell directly to consumers.
“When we started, back then everyone said that we are betting on the past [but] it has turned out to be the right decision and is putting us now in a good place,” he added.
Where some insurtechs are cutting staff to protect margins, wefox has taken its own staff base from 550 last year to 1,300 today, and is targeting $600mn revenue this year, from $320mn in 2021.
Following a deal with Germany’s Allianz to underwrite policies in the UK, Coalition revealed last week it had secured $250mn of funding from groups including Allianz’s tech investment arm. The fundraising propelled Coalition’s valuation to $5bn, from $3.5bn last year, again fuelled by fast-growing revenues.
Funding deals by insurtechs, as with other growth companies, slowed at the start of this year. The $2.2bn raised in the first quarter was the lowest total since the second quarter of 2020, according to data from reinsurance broker Gallagher Re.
Andrew Johnston, the broker’s global head of insurtech, said the sector was experiencing a bit of a “wake-up call”.
“We’ve seen big lay-offs, we’ve seen people reducing their growth expectations,” he said. This had focused investors’ minds more closely on proved revenue growth, he argued, adding: “Some winners are starting to show themselves.”
- EDF (E2F TH) +1.1%
- EDF Shares Should React Well to Nationalization Price Report: MS
- France to Pay More than EU8B for EDF Nationalization: Reuters
- BASF (BAS TH) +0.5%
- BASF 2Q Strong, Market May Pay Little Attention: Morgan Stanley
- Faurecia SE (FAU TH) +0.3%
- Vestas (VWSB TH) +0.3%
- K+S (SDF TH) -1.4%
- Delivery Hero (DHER TH) -1.4%
- Bayer (BAYN TH) -1.5%
- Prosus (1TY TH) -1.5%
- HeidelbergCement (HEI TH) -1.6%
- Zalando (ZAL TH) -1.7%
- Philips (PHI1 TH) -2.1%
- Amazon Prime Day tech deals 2022: Best offers on Garmin, Philips smart bulbs and more
- Leonardo (FMNB TH) -2.6%
- WDP (WPHB TH) -2.6%
- RBC Downgrades Eight Property Stocks on Weakening Backdrop
- Uniper (UN01 TH) -3.6%
- Uniper, EDF’s Cases Portend New State Aid as EU Gas Crisis Rages
DAX:
- BASF (BAS TH) +0.8%
- BASF 2Q Strong, Market May Pay Little Attention: Morgan Stanley
- Zalando (ZAL TH) -1.2%
- Bayer (BAYN TH) -1.2%
- Continental (CON TH) -1.3%
- SAP (SAP TH) -1.3%
- VW (VOW3 TH) -1.3%
MDAX:
- TeamViewer (TMV TH) -1%
- T. Rowe Price Group, Inc. Cut TeamViewer Voting Rights to 4.91%
- K+S (SDF TH) -1.4%
- TAG Immobilien (TEG TH) -3.1%
- Trading ex-rights
- Grand City Properties (GYC TH) -3.3%
- Grand City Properties Cut to Neutral at Goldman; PT 14.40 euros
- Uniper (UN01 TH) -3.6%
SDAX:
- PNE AG (PNE3 TH) +1.3%
- DWS (DWS TH) -0.6%
- Heidelberger Druck (HDD TH) -0.8%
- Suedzucker (SZU TH) -1%
- Traton (8TRA TH) -1.7%
- Salzgitter (SZG TH) -1.8%
>>> Up
* ABN AMRO GDRs Raised to Add at AlphaValue/Baader
* Kinnevik Raised to Hold at SEB Equities; PT 150 kronor
* Klepierre Raised to Buy at Goldman; PT 21.80 euros
* Merlin Properties Raised to Neutral at Goldman; PT 10 euros
* Shell Raised to Buy at ING; PT 2,329.04 pence
* Topdanmark Raised to Hold at SEB Equities; PT 380 kroner
* Wihlborgs Raised to Hold at Handelsbanken
>>> Down
* Arkema Cut to Underweight at JPMorgan; PT 82.50 euros
* Abrdn European Logistics Cut to Sector Perform at RBC
* Atos Cut to Sell at Stifel; PT 9 euros
* Autogrill Cut to Hold at Stifel; PT 6.90 euros
* Avanza Cut to Underweight at JPMorgan; PT 142 kronor
* British Land Cut to Underperform at RBC; PT 375 pence
* Empiric Student Cut to Sector Perform at RBC; PT 85 pence
* Epiroc Cut to Sell at SocGen; PT 155 kronor
* Gap Cut to Equal-Weight at Wells Fargo; PT $10
* Grand City Properties Cut to Neutral at Goldman; PT 14.40 euros
* Great Portland Cut to Neutral at Goldman; PT 600 pence
* Hammerson Cut to Underperform at RBC; PT 17 pence
* Kojamo Cut to Sell at Goldman; PT 11.30 euros
* Land Sec. Cut to Sector Perform at RBC; PT 675 pence
* Mowi Cut to Equal-Weight at Barclays; PT 275 kroner
* Nordnet Cut to Neutral at JPMorgan; PT 125 kronor
* Salmar Cut to Underweight at Barclays; PT 639 kroner
* Sandvik Cut to Hold at SocGen; PT 190 kronor
* Unibail Cut to Underperform at RBC; PT 42 euros
* Warehouse Cut to Underperform at RBC; PT 120 pence
* WDP Cut to Underperform at RBC; PT 25 euros
>>> Initiation
* Devolver Digital Rated New Buy at Liberum; PT 85 pence
* Peach Property Rated New Add at Baader Helvea
* Vonovia Maintained at Outperform at RBC; PT 40 euros
>>> Call
* BASF 2Q Strong, Market May Pay Little Attention: Morgan Stanley
* EDF Shares Should React Well to Nationalization Price Report: MS
* JPMorgan’s Kolanovic Hedges Risk-On Wager, Cuts Corporate Debt
* Molten Ventures Falls; Berenberg Cuts PT Yet Says Stock Is Cheap
* RBC Downgrades Eight Property Stocks on Weakening Backdrop
* Zur Rose Downgraded and PT Slashed at Deutsche Bank on Cash Burn
Stocks and US equity futures fell Tuesday as the dollar and sovereign bonds rose, a pattern highlighting pervasive unease about the economic outlook amid high inflation and China’s struggles with Covid. An Asian share index was dragged lower by the technology sector as well as weakness in Japan, Hong Kong and China. S&P 500, Nasdaq 100 and European contracts shed over 0.5% after a Wall Street slide Monday. The dollar pushed toward levels last seen at the height of the 2020 market panic over Covid and the yen strengthened, underlining investor caution. The euro-area’s common currency, meanwhile, is in sight of parity with the greenback, sapped by the region’s energy crisis and acute recession fears. Treasuries extended gains, taking the US 10-year yield to 2.96%. Bonds also rallied in Australia. Commodities including oil and iron ore were under pressure. Bitcoin dropped below $20,000. Much is riding on upcoming company profit filings and this week’s US inflation data. A brief equity rebound from this year’s rout is already fizzling ahead of the reports. Risk appetite may struggle to digest a darkening earnings outlook alongside stubborn price pressures that point to more monetary tightening. In China, investors are concerned more Covid lockdowns may lie ahead as Beijing continues with a strategy of mass testing and mobility curbs. A government push for stimulus to shore up growth is starting to have an impact: credit jumped last month to the highest on record for June.
Meanwhile, the latest Fed commentary highlighted both the central bank’s hawkishness and the risks that come with aggressive interest-rate hikes. Fed Bank of Atlanta President Raphael Bostic said the US economy can cope with higher interest rates and repeated his support for another jumbo move this month. Fed Bank of Kansas City President Esther George, who dissented last month against the central bank’s 75 basis-point rate increase, cautioned that rushing to tighten policy could backfire. In company news, Chinese electric-car giant BYD Co. slumpedafter a stake matching the size of Berkshire Hathaway Inc.’s appeared in Hong Kong’s stock-market clearing system, fueling speculation that Warren Buffett’s firm may be adjusting its holdings. US After Hours Summary: GPS -2.1% on CEO stepping down, but reaffirms Q2 revs; PSMT -4.2% lower on earnings; PLAY +3.3% on new execs
Nikkei -1,93% Hang Seng -1,34% CSI -1,04% Shanghai -0,85% Shenzen -1,21%
Eur$ 1,0012 CNH 6,7490 CNY 6,7360 JPY 137,34 GBP 1,1860 CHF 0,9842 RUB 63,7163 TRY 17,3596 WTI$ 101,97 - 0,20% Gold 1,727,45 - 0,40% BTC 20,025 -1,4% ETH 1,090
S&P -0,71% Nasdaq -0,82% EuroStoxx -0,92% FTSE -0,41% Dax -0,87% SMI -0,50%
Macro :
- Worst of World’s Energy Crisis May Be to Come, IEA’s Birol Says
- Bitcoin Bounce From This 70% Crash Faces Fatal Flaw: Macro View
- CEO of Sweden’s $44 Billion AP1 Fund Weighs New Property Deals
- Ackman’s Record SPAC to Return Funds After Deal Hunt Fizzled
- JPMorgan’s Kolanovic Hedges Risk-On Wager, Cuts Corporate Debt
- At 15x, Swiss Haven’s Falling P/E Is Still Extreme vs. Europe
Keep an eye on :
- BAS GY : BASF Prelim 2Q Adjusted Ebit Beats Estimates
- BON FP : Bonduelle Sees Activity, Profitability Below 2021-22 Target
- DBK GY : Deutsche Bank Sees Nordic IPOs Bouncing Back From Lull Next Year
- DB1 GY : SEC Expected to Approve Rollback of Restrictions on Proxy Advice
- DTE GY : AT&T, Verizon, T-Mobile Cleared to Bid in FCC Airwaves Auction
- DNB NO : DNB Bank 2Q Net Income Beats Estimates
- EDF FP : France to Pay More than EU8B for EDF Nationalization: Reuters
- EDF FP : Uniper, EDF's Cases Portend New State Aid as EU Gas Crisis Rages
- FGR FP : Eiffage Acquires Harwig and Eltra for Growth in Netherlands
- ENG SM : Enagas To invest EU4.8b Through 2030, Including Interconnections
- GALE SW : Galenica Buys Aquantic; No Deal Terms
- TKWY NA : Just Eat Takeaway.com Bets on Amazon 5x User-Boost for Grubhub
- MC FP : LVMH’s Sephora Is in Talks to Sell All of Russian Unit
- LHA GY : Italy Finance Ministry Said to Prefer MSC Bid for ITA: Corriere
- B4B GY : Billionaires Said to Vie for Metro’s Indian Wholesale Unit
- NOD NO : Nordic Semiconductor 2Q Ebitda Beats Estimates
- NYF SS : Nyfosa 2Q Total Income Meets Estimates
- PGHN SW : Partners Group Hires ZF’s Scheider as Head of Private Equity
- PPGN SW : PolyPeptide Sees Drop in Profitability in 1H 2022 vs 1H 2021
- RNO FP : Renault Sales Fall 12% in First Half Excluding Russia Pullout
- RNO FP : Renault 1H Worldwide Sales Ex-Russia Fall 12% to 1m Vehicles
- SAS SS : SAS to Resume Talks With Pilots’ Unions, Ready for Concessions
- SPM IM : Saipem Says 70% of New Shares Subscribed for EU1.395B
- SINCH SS : Sinch Sees SEK162M Effect on 2Q Profit Due to Cost Reassessment
- SKAB SS : Skanska Names McCullough Head of US Commercial Development
- STB NO : Storebrand: Solvency Ratio Higher Than Mkt Expectations in 2Q
- TEL NO : Two Thai Panels Oppose True-Total Access Merger: Bangkok Post
- HO FP : Thales Agrees to Buy Cybersecurity Firm OneWelcome for EU100m
- TRYG DC : Tryg 2Q Combined Ratio Reported Beats Estimates
- UN01 GY : Uniper, EDF's Cases Portend New State Aid as EU Gas Crisis Rages
- WRT1V FH : Wartsila Wins Energy Storage Order From Clearway Energy