UK Indexes Flat; Nando, Clapham Deal

Arthi Gupta
17 Sep, 2010
New York City

The UK indexes declined on global economic data. The UK Chancellor George Osborne reiterated sovereign debt risk is a threat to European economies. Promethean Plc surged 6.33% to 42.00 pence after the investment company reported fiscal 2010 profit.

[R]4:30 PM London – The UK indexes declined on global economic data. The UK Chancellor George Osborne reiterated sovereign debt risk is a threat to European economies. Promethean Plc surged 6.33% to 42.00 pence after the investment company reported fiscal 2010 profit.[/R]

Nando''s Group announced 74 pence per share offer for Clapham House. Mitchells & Butlers agreed to acquire Ha Ha Bar & Grill for £19.5 million.

In London, FTSE 100 Index traded lower 12.73 or 0.22% to 5,527.29 and the pound edged lower to close at $1.5637. For the week, the FTSE 100 index increased 0.47%.

The UK Chancellor George Osborne said in an interview with the French newspaper Les Echos that the biggest risk to European economies is the return of the sovereign debt risk. Osborne said the deficit reduction measures announced in June were necessary to restore stability and reinstate confidence, both in the UK and abroad.

HSBC Holdings Plc, through its wholly owned subsidiary The Hong Kong and Shanghai Banking Corporation Limited agreed to sell an 80.1% interest in HSBC Private Equity (Asia) Limited to Foci Holdings Limited, the acquisition vehicle of members of HPEA''s current management team. HPEA is expected to have consolidated gross assets of about $18.8 million at completion. HSBC will retain a 19.9% interest in HPEA.

3i Group, the international investor announced today that Jonathan Russell, who heads the firm''s buyout division, is quitting, after the company decided to combine its buyout unit and growth capital business to integrate to Private Equity business.

Nando''s Group Holdings Limited reached an agreement with Clapham House Group Plc on the terms of a recommended cash offer by which NGHL will acquire the entire issued and to be issued ordinary share capital of Clapham House not already owned by it or its associates. Under the Offer, the Clapham House Shareholders will be entitled to receive 74 pence in cash for each Clapham House share.

The offer values the entire existing issued share capital of Clapham House at about £30.4 million and represents a premium of about 31.0% to 56.5 pence, the closing mid-market price a Clapham House Share on July 22, the last business day prior to the date of the first approach offer.

Mitchells & Butlers plc. agreed to acquire Ha Ha Bar & Grill from Bay Restaurant Group for a gross cash consideration of £19.5 million.

After completion of the transaction on October 3, the 22 leasehold sites acquired will be converted in due course into twelve All Bar One sites and six Browns restaurants with the remaining four operating as other Mitchells & Butlers brands.

BP plc''s Development Driller III relief well intersected the Macondo oil well in the Gulf of Mexico, federal officials announced on Thursday night.

Retired Coast Guard Admiral Thad Allen, the federal spill commander stated, ""We intend to proceed with preparation to cement the annulus and complete the bottom kill of the well.""

Gainers & Losers

Domino Printing Sciences Plc rose 1.83% to 529.00 pence after the coding and printing solutions provider in its interim management statement for the four months from May 1 to September 16, said its revenues grew 20% from the corresponding period last year.

Manx Financial Group PLC soared 4.37% to 11.22 pence after the offshore banking and financial services provider reported first-half loss narrowed 526% to £289 thousand or 0.40 pence per share from a loss of £1.81 million or 2.85 pence per share in the prior year. Net interest income rose 32% to £1.39 million, from £1.05 million last year.

Promethean Plc surged 6.33% to 42.00 pence after the investment company reported fiscal 2010 profit was £5.97 million or 13.20 pence per share, compared to a loss of £3.97 million or 8.14 pence per share last year. Group profit was £10.27 million, compared to a loss of £7.15 million a year ago. Pre-tax profit in the period was £10.33 million, versus loss of £7.13 million in the prior-year period.

Wichford Plc dropped 0.26% to 7.68 pence after the property investment company announced the extension of the Delta facility and completion of the St Cloud sale. The company noted that the extension of the £114.6 million facility is for a further two-year period.

Besides, further to the announcement in the latest interim management statement, Wichford completed the sale of St Cloud for €6.13 million. The sales price is 3.1% ahead of the latest valuation in local currency terms, the company said. Wichford added that it would use the proceeds to recycle capital back into the UK portfolio.

Xchanging PLC increased 1.70% to 131.30 pence after the business processor said Ken Lever would be appointed as Chief Financial Officer on October 5 and would begin the transition phase of his new role immediately.