U and I Group PLC launch £ 190million LandSec takeover bid, but Purplebricks Group PLC expects home sales to drop
U and I Group PLC (LSE: UAI) has been one of the biggest stories for small caps this week, climbing 72% to 148p following a takeover bid.
Real estate giant Land Securities Group PLC (LSE: LAND) has offered to buy the regeneration group for £ 190million or 149p per share, which is a 73% premium over the previous closing price.
The FTSE 100 Group said the acquisition will provide access to a significant pipeline of mixed-use development projects, two of which – Mayfield and the Manchester Strategic Regeneration Framework – are well into planning.
U + I also provides access to London’s Landmark Court, another high-quality development run by offices with a building permit.
“Developing truly world-class mixed-use communities that inspire and create opportunity is more important than ever. The combination of Landsec and U + I is compelling and will help us to accelerate our strategy, both by introducing exciting new urban development opportunities and strengthening the front-end development capacities and place-creation skills of Landsec ”, a said Mark Allan, Managing Director of LandSec.
Conversely, real estate agent Purplebricks (AIM: PURP) Group PLC plunged 41% to 32p after issuing an earnings warning blamed on an imbalance between supply and demand in the real estate market.
After a stronger instruction period last year, sales are expected to drop over the next few months as there are not enough properties listed.
Looking at the broader market, the AIM All-Share Index and the FTSE 100 rose 1% to 1,237 and 7,322 respectively.
Sticking to the slaughterers, Alba Mineral Resources PLC (AIM: ALBA) plunged 25% to 0.1p after Welsh authorities denied a permit for the water discharge activity at the gold mine in Clogau-St David’s. The miner has not shown how the plan “will not adversely affect” local protected animals, Natural Resources Wales said.
Berkeley Energia Limited fell 20% to 13 pence by suspending its shares on the Australian Stock Exchange following a claim by the Oman Investment Authority, which asks the energy company to pay $ 65 million for a convertible note. Berkeley Energia has received a summons for proceedings in the Supreme Court of Victoria at the Melbourne Commercial Court.
Omega Diagnostics Group PLC (AIM: ODX) slipped 16% to 43p after announcing it was still awaiting UK approval for its COVID-19 rapid tests, delaying supply to DAM Health client clinics . The UK has new rules in place for coronavirus testing.
Specialty ingredient maker Itaconix PLC (LSE: ITX, OTCQB: ITXXF) fell 12% to 5p after temporarily halting production at its New Hampshire plant due to heavy torrential rains causing water damage .
Looking at the risers, Nightcap PLC (AIM: NGHT) jumped 18% to 22p after announcing that trade had been stronger than expected in recent weeks and would open three new London Cocktail Club locations before Christmas.
Likewise, Fulham Shore PLC (AIM: FUL), owner of The Real Greek and Franco Manca (AIM: FUL), rose 11% to 17p after bragging that its restaurants exceeded 2019 revenue levels in during the summer.
Silence Therapeutics PLC (AIM: SLN, NASDAQ: SLN, OTC: SLNCF) rose a tenth to 552p after revealing a new shareholder, Frazier Life Sciences Public Fund. The healthcare-focused investment firm bought US $ 20 million of existing shares and now owns 3% of the drug discovery group.
Netscientific PLC jumped 9% to 112p after its owned company Sofant Technologies signed a € 7.3million contract with UK and EU space agencies. Sofant, a 5G communications specialist who develops antennas, will participate in the marketing of a low-cost, low-consumption satellite communication platform.
Next week, Firering Strategic Minerals plc is expected to join the junior market with a £ 4million IPO. The Cyprus-based group is a holding company for exploration and development companies focused on the ethical production of critical metals. Its portfolio is located in Côte d’Ivoire and contains projects with potential for lithium and columbite-tantalite.