Market Report: Sepura back on City radar as Chinese bid raises hopes

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Investors tuned into Sepura today after it revealed giant Chinese group Hytera Communications is eyeing up a takeover of the beleaguered walkie-talkie maker.

Sepura’s shares, which have taken a beating this year after a string of profit warnings, soared 6.1p, or 33%, to 24.6p as investors reacted to news which emerged after the market shut on Friday that it was in takeover talks with Hytera.

The Cambridge-based company, whose walkie-talkies are used by the emergency services, said that Hytera confirmed that any offer was likely to be in cash, and although no price was mentioned, it is expected to table an offer of more than 25p per share, valuing Sepura at around £90 million.

It’s a far cry — almost an eighth — from the 197p the shares were trading at in April before a series of profit warnings caused the price to crater and forced it to look for a buyer to end its misery.

The FTSE 100 recovered 105.13 points, or 1.6%, after Friday’s dive to 6798.39 after the FBI cleared Hillary Clinton of criminal conduct in the email scandal just two days before the US election. 

The US dollar also strengthened 1% against the pound at $1.2395, boosting miners, whose commodities are traded in dollars. BHP Billiton climbed 49.5p, or 4.3%, to 1215.5p and Antofagasta managed to rise 21.5p, or 4%, to 553p.

Funeral organiser Dignity improved 14.59p to 2643.59p after its third-quarter was slightly better than analysts were anticipating, with more deaths than expected in the period.

On AIM, the second upgrade to profit forecasts in a month lifted medical diagnostics business EKF Diagnostics 1.58p, or 10%, to 17.7p, and video gaming services group Keywords Studios, up 33.8p at 458.8p, flirted with new all-time highs after lifting its own full-year forecasts.

Yolo Leisure and Technology, majority owned by Saracens chairman Nigel Wray, was unchanged at 1.2p. That was despite issuing shares at a discount to raise funds for a £1.4 million investment in Magic Works, the company behind music streaming service Electric Jukebox, which is backed by Robbie Williams and Alesha Dixon.

Elsewhere, IT firm Redcentric tanked 102.3p, or 68%, to 47.7p after discovering its accounting balances were misstated, which will mean historic profits being downgraded. It ousted chief financial officer Tim Coleman.

Source Article from http://www.standard.co.uk/business/market-report-sepura-back-on-city-radar-as-chinese-bid-raises-hopes-a3389321.html

November 8, 2016 |
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