TheChek News Flow

Chinese assure CEO Fyrwald financing in place to seal takeover and fund more growth

Syngenta chief executive Erik Fyrwald is confident the $43bn sale of the Swiss seed and chemical company to ChemChina will be completed by the summer, as he looks to “aggressively grow” the company in China.

US and European antitrust regulators will approve the Chinese offer to buy Syngenta in the next few weeks, said Mr Fyrwald, who will remain chief executive once the deal is complete.

He adds that he has been assured by the Chinese group that financing is in place to close the deal, maintain the company’s investment-grade credit rating and fund more growth.

“It’s nice to have a financial owner with capacity and commitment to the long term,” said the chief executive, who expects increased spending on internal investment as well as acquisitions with incremental investment primarily in China.

“There is a big opportunity in China,” he added. “We have an opportunity to bring our capabilities to help strengthen Chinese agriculture” using ChemChina’s domestic knowledge and funding to bring existing technologies to the market.

Mr Fyrwald also wants to boost new innovation in China and collaborate with local institutes to commercialise developments.

The Asia-Pacific region accounted for less than 15 per cent of Syngenta’s $12.8bn sales last year.

State-owned ChemChina’s cash offer for Syngenta in February last year was the largest outward-bound deal by a Chinese company and is part of Beijing’s desire to improve food security, reduce reliance on foreign seed makers and develop an agribusiness industry.

The deal is the second of a trio of mega mergers consolidating the global agribusiness giants.

Some farmers, consumer groups and politicians are concerned more concentration could increase prices or cut choice and innovation. The first deal, between Dow Chemical and Dupont, was approved by European regulators on Monday. The third, Bayer’s purchase of Monsanto, is in progress.

“Regulators are rightly concerned” that there needs to be price competition and enough competitors innovating to ensure science keeps advancing, said Mr Fyrwald.

“If two of the top five players come out of the market, I think that changes things,” he said, adding what regulators require companies to sell to obtain antitrust approval — so-called “remedies” — are important in determining the future of the industry.

Dow and Dupont promised Brussels they would sell off half of Dupont’s crop protection business and some of Dow’s petrochemical divisions to address these remedies and concerns of regulators.

Syngenta “are absolutely looking at remedies”, said Mr Fyrwald who wants “bolt-on” acquisitions that fill in gaps — seeds assets are “high on the list”.

Syngenta earns 8 per cent of revenues from genetically modified products — seeds that combine traits from different plants or organisms to modify their behaviour.

Proponents argue GM traits increase yields and decrease carbon emissions and water usage, but critics worry about health impacts, environmental risks or unintended consequences.

GM products are largely banned in the EU, but are an important part of Syngenta’s business in the US, Canada, Brazil and parts of Asia.

Concern about GM has grown in China, but the government is “moving carefully” to build consumer confidence, according to Mr Fyrwald, and “to the extent that [GM] technology can reduce greenhouse gas emissions and reduce water consumption, that’s highly valued by China”.

Bloomberg, the financial media giant selling $24,000-a-year terminals, saw sales of its ubiquitous black-and-orange screens fall for the second time ever last year, according to a new industry report.

Terminal rentals declined by about 1 percent last year, to 324,485 worldwide, as banks downsized and cut the cord, according to a report released Tuesday by Burton-Taylor International Consulting.

The 2016 decline in terminal sales was only the second time in the company’s nearly 36-year history. The only other down year was 2009, during the financial crisis.

Last year, The Post exclusively reported that JPMorgan and Bank of America, two of the company’s biggest customers, were looking to cut as many as 7,000 terminals during the next three years as part of larger budget overhauls.

Bloomberg is still the biggest player in the field — with more than a third of the entire market share. The next-biggest company, Thomson Reuters, fell to 23 percent.

Despite the terminal drop-off, Bloomberg still managed to increase revenue by about 3.4 percent, to $9.2 billion — in part because of a 10 percent spike in bankers buying raw data feeds.

It isn’t clear how profitable Bloomberg is, since the company reports revenues but not costs.

One reason for the decline in terminal sales has to do with the terminal contracts, almost all of which are denominated in US dollars, three sources in the company told The Post.

The US dollar has gained so much against others that in places like Brazil — where the value of its currency has collapsed against the greenback since 2012 — terminals have effectively doubled in price from only a few years ago.

Overall, the company’s growth has slowed around the world during the last four years. In Europe, the Middle East and Africa, terminal sales have dropped 1.8 percent during that time. It’s up 5.8 percent in Asia and 0.6 percent in the Americas.

“Even though it’s a reality that people in Brazil or other countries suffer those problems when paying for those Bloombergs, Bloomberg has been able to sell enough terminals around the world that the net isn’t crushing them,” Douglas B. Taylor, the author of the report, told The Post.

Ty Trippet, a spokesman for Bloomberg, declined to comment.

The glasses will retail for $199 and be sold at the Adidas SoHo flagship as well as the Italia Independent web site.

Adidas and Italia Independent will begin selling their cobranded limited-edition eyewear in New York today.

The two models of glasses will be sold at the Adidas flagship in SoHo as well as on the Italia Independent web site. There will also be a launch event at Pioneer Works in Brooklyn’s Red Hook on Wednesday night.

“I am excited to show the new Adidas Originals Seventies-inspired limited-edition eyewear in New York,” said Lapo Elkann, founder and artistic director of Italia Independent. “We’re proud of the creativity and innovation, which we poured into the creation of four frames with a strong personality and uniqueness. I was able to infuse the love for New York — the city where I was born and a place of endless inspiration — in the design process. The matte finishing and colors of the two models perfectly embody the spirit of Brooklyn and the hues of New York back in the Seventies.”

The glasses will be available in one men’s and one unisex model in two colors: a matte brown and a matte black and white in cellulose acetate and nose pads with gold bridges.

Giovanni Carlino, chief executive officer of Italia Independent, said holding the event in New York “shows the relevance of the U.S.” to the companies.

The glasses will retail for $199.

Groups holding 25% of share capital press company to meet US rival over €22.4bn bid

Investors representing almost 25 per cent of Akzo Nobel’s share capital want the Dutch group to engage with US rival PPG Industries in its €22.4bn pursuit of the company, according to a survey commissioned by activist hedge fund Elliott Advisors.

Elliott, which owns more than 3 per cent of the paints and coatings company, has been among the most vocal shareholders demanding that management at Akzo Nobel sit down with PPG.

The board of Akzo Nobel dismissed two offers in three weeks, citing factors such as potential job cuts, antitrust concerns and a poor cultural fit between the two businesses.

In total, shareholders representing 24.6 per cent of Akzo Nobel’s share capital responded to the survey, which was carried out by Boudicca Proxy Consultants. Of these, nearly all — 99.6 per cent of their share capital — backed engagement between Akzo Nobel and its US suitor.

The survey came as Ton Büchner, Akzo Nobel chief executive, said that the maker of Dulux paint would unveil its own plan to boost profitability on April 19, in a bid to stave off investor discontent.

The group, which is planning to sell or float its speciality chemicals business to focus on paints and industrial coatings, said it would “outline plans for the creation of two focused businesses”, without providing further details.

Mr Büchner said that the company “was best placed to deliver” a planned restructuring despite signs of displeasure among some of its largest investors after flatly refusing two offers, including one that amounted to €88.72 per share.

Shares in Akzo Nobel traded at €77.60 on Tuesday, down 0.9 per cent. Before the bid, shares in the group traded at about €64.

“There is a large number of shareholders who are happy,” said one person familiar with the discussion between Akzo Nobel and its shareholders.

The person said that those calling for engagement had little to lose: “It is not in a shareholder’s interest to say: ‘don’t’. But there is nothing to lose by saying ‘do’.”

Some big shareholders have already gone public about their desire for Akzo Nobel to open official talks with PPG, including Causeway Capital, which owns 6.8 per cent of the company.

While Michael McGarry, PPG chief executive, has said that he would prefer not to launch a hostile bid for the Dutch group, the US boss has refused to rule out this option.

Akzo Nobel said: “We have a very active dialogue with all of our shareholders.”

bofAml

* BAML Real Estate Conference starts here today, through to Friday.............

* CONVATEC - Upsized deal to 375m shrs. Priced at 260p/shr; BAML/GS/UBS........

SANOFI - Sentiment +ve. FDA approves Dupixent for atopic dermatitis (85.2)+1-2%

GPOR - All positive. Refinances 5.3% debt with new 7yr 2.15% debt (637).....+1%

TUI - Inline.Ex Turkey bookings are up 7%.Reit guidance of 10% growth (1146)+1%

MINERS - Copper unch, Iron Ore fut -0.5% with BHP OZ +0.29%, RIO OZ +0.7%...+1%

MEDIASET - Asks AGCOM to freeze Vivendi stake at 10%;Sole24Ore reports (3.9)u/c

ROCHE - FDA approves Genentech’s OCREVUS for multiple sclerosis (253.1).....u/c

VIVENDI - Mediaset asks regulator AGCOM to freeze Vivendi stake at 10%(17.4)u/c

STAGECOACH - Expectation for EPS has not changed since interim results (199)u/c

SAGA - Inline with EBITDA 246.1 v 246.6 cons. Had a good run of late (208)..-1%

Investec:
UK
* ALLIANCE PHARMA-FY.#'s sml miss.Current yr has started well...............-1%
* BILLITON-8 coal mines now halted prod. due to Cyclone Debbie.............unch
* CENTAUR MEDIA-FY.#'s I/L but outlook remains weak.Expect c25% EPS D/G....-15%
* GREAT PORTLAND-£175m refinance.Further 15k sq.ft leasing in Broadwick St.unch
* IMAG.TECH-Tsinghua Unigroup(3% holder of IMG)secures $22b new finance(FT).+1%
* MIDWICH-Acquires 88% stake in Earpor. Earning enhancing.U/G FY17/18&19....+2%
* SAGA-FY-In-line,started CY well,to launch memebership scheme in H2.Dull...-1%
* SANNE-FY-In-line,25% EPS growth,strong pipeline,current trading in-line...+1%
* STAGECOACH-T/U-no change to FY est's,most divisions improving,UK Bus weak.+2%
* TUI-Update.Summer Booking +4%(TCG yday +10%) Reits FY earnings..........-1-2%
* WORKSPACE-exercises option to buy Fitzroy St property for £98.5m.........unch

EU
* AKZO-investors representing 24.6% stake call for PPG tlks(FT)...........+0.5%
* ORPEA-FY rev,div in line,net well ahead(1 off?),reit o/look,strong into...U/C
* LAGARDERE-denies reports it is looking for partner for Relay stores.......-1%
* ROCHE-the FDA approved MS drug Ocrevus.....................................1%
* SCOUT24-FY16 look fine, div better,‘robust’ o/look, shs +5% last 2 days...-2%
* SIEMENS-$4.1bn US contract win.CEO considers partial healthcare spinoff...+2%
* SOLVAY-to sell 25% National Peroxide stake to Wadia(ET). No price.........+1%
* STADA-releases delayed results, no surprises, no update on talks..........U/C
* TUI-pre close-reits outlook,bookings not quite as good as TCG LN y’day....U/C


Winterflood:
********** FTSE350 **********

* CONVATEC (CTEC) M/P; 2 of biggest shareholders have sold 19.95% of the company to Novo A/S (arm of Novo Nordisk). They have sold at 260p. In addition to this they are placing a further 300m shares via bookbuild done by GS, UBS and Merrills.

* GREAT PORTLAND (GPOR) +1-2%; Announces further 15,725 sq.ft of lettings at 30 Broadwick Street with an average ERV 9.9% YoY. Company has also refinanced £175m debt with group of US investors, reducing the interest rate to approx 2.7% from 3.7% DEC16.

* SAGA (SAGA) unch; Trading EBITDA miss est in a small way, DIVI in line with expectations, confident statement re the start of the year, had a decent rally from Feb lows, can't see PM's rushing to add to their holdings this morning...

* STAGECOACH (SGC) +1-2%; FY EPS expectations unch, UK bus division weaker, improvements in the US. UK rail has seen improvement in growth rates but remain low by historical standards. More colour in the prelims due on 28 June.

* TUI AG (TUI) +2%; Bookings +4% and rev +9%. Facing some macroeconomic and geopolitical challenges and continuing low demand for Turkey and North Africa but maintain guidance and trading in line.

********** Small Cap / AIM **********

* ALLIANCE PHARMA (APH) +2%; Transformational year. Successful integration of Sinclar Pharma products. Current year has started well.

* AVANTI COMMS (AVN) unch; Partnership with Millicom.

* CAMBRIDGE COGNITION (COG) +5%; Prelims. Strong growth which delivers a maiden profit. Revs +37%. High product launch despite lower R&D spend. +VE 2017 outlook but keeping an eye on marco developments in the EU and US pharma mkt.

* CENTAUR MEDIA (CAU) -5%; Rev £72.5m vs £70.5m. Pre-tax loss £4.4m vs loss £5.6m. Div in line with last year. The fall in high margin advertising revenues will result in a 2017 profit reduction which is expected to reverse in 2018. Looking to sell The Home Interest segment.

* CIRCLE HLDS (CIRC); 30p cash bid announced today (private healthcare provider).

* COLLAGEN SOLUTIONS (COS) unch; Granted Aussie patent.

* DX GROUP (DX/) +20%; Major £10m rolling 3 year contract with Avon. WE ARE BUYERS.

* EDEN RESEARCH (EDEN) unch; Extension of patent protection in Greece.

* ENTU PLC (ENTU) +2%; Restructuring going well, ¼ 17 ahead of plan. Should return to growth in 2018.

* FAIRPOINT (FRP) +5%; £1.2m disposal of medical records business.

* FARON PHARMACEUTICALS (FARN) +2%; Finals, inline with expectations with exciting news flow coming this year.

* FLYBE GROUP (FLYB) -10%; Seat capacity growth 10% vs 12.7%. Passenger rev 9.8% vs 13.5%. Upgrading its core systems, which could impact profits by £5m to £10m. Summer trading to date is in line with expectations. Competitive conditions in the market continues.

* HARDIDE PLC (HDD) +5%; Completion of Airbus industrial qualification now makes them official supplier.

* HML HOLDINGS (HMLH) unch; £2.7m acquisition of Faraday Property Management.

* JAMES HALSTEAD (JHD) -1%; Interims only slightly higher than last year, benefiting as an exporter but also facing raw material import costs. Remains a solid profitable business but doesn't look strong enough to us to advance the share price.

* MIDWICH GROUP (MIDW) +2%; Acquisition of majority stake in EarPR S.A.

* OMEGA DIAGNOSTICS (ODX) +5%; The company has CE marked its malaria test range. Additionally the manufacturing plant in India has been passed as fully compliant until 2021.

* PETARDS (PEG) +10%; Contract win worth £4.3m from Stadler Bussnang fot its CCTV and automatic select door opening systems.

* PRESIDENT PETROLEUM (PPC) +5%; Better flow rates from recent worked over well negated a bit by slight delay caused by heavy rains.

* SABIEN TECH (SNT) -50%; Need to raise funds to stay alive, news promised later today, will heavily dilute existing 62m shares in issue.

* SANNE PLC (SNN) +2%; Full yr results. REV £63.8M V £45.6M. PBT £15M V £2.4M. DIV 9.6P V 7P. Trading has continued in line with the statement in Jan. Business performing well and confident of growth in the year ahead.

* SEPURA PLC (SEPU) -5%; Competition approval. UK department of business is considering initiating a review of the acquisition. Sepura continues to evaluate the implications if the review is implemented.

* SHORE CAPITAL GROUP (SGR) +3%; Solid set of numbers accompanied by board changes. 5p dividend announced too.

* TELFORD HOMES (TEF) +2%; Sold Build-to-Rent project in Stratford for £53m.

* TRANSENSE TECH (TRT) -10%; Second payment of £250k due from GE but dissappointing figs. H2 forecast to be weaker.

Commerz:
*DBK +0.5% Upgraded by S&P on German law change from BBB+ to A-
*G24 –1.8% To propose first IPO dividend of €0.3
*GMM +2.7% Proposes div of €1.3 for 2016 vs €0.75 in 2015
*LEO –1.1% Mainfirst cuts to Neutral – PT €50 (38)
*LHA –0.5% Germanwings lawsuit tossed two years after suicide crash
*SAX +1.1% HSBC initiates with Buy, PT €58 / Barclays with Overweight, PT €56
*SAZ –1.4% Accounting issue sheds c. €7m off FY adj. EBITDA
*SIE +0.1% Kaeser sees partial spinoff possible for Health-Care unit
*S92 +0.8% Sells Railway Tech unit and confirms forecast for 2017
*TTI –1.5% Montega raises to Buy (Hold) – PT €10.5 (5.5)
*TUI1 –0.4% Stick to FY earnings outlook, 48% of summer program sold
*UN01 –2.2% GS cuts to Neutral (Buy) – PT €17


CS:
Banks +0.5-1% US 10yr back above 2.42%

Generali +1-2% CS UPGRADE to NEUTRAL (Cash flow and solvency)

Heidelcement -1-2% Schwenk Deal May Be Blocked, Reuters

Miners +2-3% Copper +0.30%, Brent -0.15%, Iron Ore +2.45%, China +0.20%

Orpea M/P Property portfolio was revalued by 19%

Nostrum +1-2% CS UPGRADE to OUTPERFORM (change of analyst)

Oils +0.5% US API build of 1.91m barrels, Brent -15bps to $51.5

Roche +1% Ocrevus won U.S. FDA approval for multiple sclerosis

Saga M/P FY Pretax 1.5% ahead, dividend 1% ahead

Sanne M/P Revs inline £63.8m vs cons £63.3m, Pretax small ahead

Scout24 -3-5% 2017 guidance, high single digit rev growth vs CS at 9.4%

Siemens +1% Awarded max $4.13bn radiology pact by US Defence Dept

Stagecoach +1% UK Bus tough, North America trading inline, sticking to FY

Tui +1% Summer bookings +4%, prices +5%, reiterate guidance

Citi:
EU
* SMA Solar - sells SMA railway tech unit,confirms fy,Q1 guid light -1%
* Roche - multiple sclerosis drug Ocrevus won US FDA approval +1%
* Orpea - fy revs in line,net beat,forecasts higher revenue +1%
* Scout24 - fy revs in line,ebitda light,2017 robust outlook unch


RBC:
*CONVATEC: -2% placing of 375M @ 260p per share, demand strong.

*JRP: -2% placing of 95M shares @ 130p per share, demand strong.

*ROCHE: +2% wins FDA approval for OCREVUS, MS drug.

*SAGA: -1% FY'16 EBITDA miss.

*SANNE: +2% FY'16 org growth better, numbers in line, FY'17 outlook positive.

*SCOUT24: +1% FY'16 strong, proposes first post-IPO dividend.

*STADA: -1% Q4'16 adj net income -4%, FY'17 confirmed.

*STAGECOACH: +2% FY'17 earnings expectations unch, focus on turn around in NA.

*TUI: +1% summer '17 trading in line, FY'17 outlook reiterated.


Macquarie:
* Atlantis Res ARL- Gets agreement to develop Tidal Power in Indonesia. +1%

* Aviva AV/- Press Spec that it’s in talks to sell Friends Provident Intl Unit. +0.5%

* Jackpot Joy JPJ-First set of Results post move- Rev’s up 15%, Ebitda up 19% high end of market guidance. Forecasting 10% revenue growth for 2017. +3%

* JRP Group- Cinven & Permira placed 95m shs (8% of co.) at 130p.Placing upsized from 75m shs.-5%

* Saga- Results inline, Started Financial Year well. Unch

* SIG Grp SHI- Meinie Oldersma appointed CEO, Chairman also stepping down. Unch

* Tullow Oil TLW- Said to be close to selling North Sea to Independent Oil : Betaville. +2%