AXA to Acquire Insurer in Brazil; Richemont, Severn Trent Net Decline

Nigel Thomas
22 May, 2015
New York City

Axa agreed to acquire SulAm

[R]4:00 PM Frankfurt – Axa agreed to acquire SulAmérica for €40 million. Booker Group agreed to acquire the Londis and Budgens chains for£40 million. Grainger revenues tumbled 34%. Quintain Estates agreed to sell 50% stake in Hilton Hotel Wembley Park. Richemont profit tumbled 36%.[/R]

In London trading, FTSE 100 index gained 0.6% or 42.92 to 7,056.31 and in Frankfurt the DAX index fell 0.3% or 36.62 to 11,827.99.

In Paris, CAC 40 index edged down 5.27 to 5,141.43.

For the week, FTSE 100 index increased 1.4% and in Frankfurt the DAX index climbed 3.3%.

In Paris, CAC 40 index jumped 3%.

AXA SA edged up 0.06% to €23.94 after the France-based insurance company agreed to acquire Brazil-based industrial and commercial risks insurance company SulAmérica Companhia de Seguros Gerais, a subsidiary of SulAmérica S.A. for €40 million.

The transaction is expected to close in the fourth-quarter of this year.

Booker Group Plc slid 0.2% to 169.60 pence after the U.K.-based cash-and-carry wholesaler, agreed to acquire the Londis and Budgens grocery and convenience stores for £40 million.

Grainger Plc gained 0.7% to 220.70 pence after the U.K.-based residential estate developer stated revenues in the year ending in March slumped 33.7% to £125.9 million from £190 million in a year ago period.

Net profit in the period declined 85.8% from a year ago to £6.4 million compared to £45.2 million and diluted earnings per share decreased to 1.6 pence from 10.9 pence.

Quintain Estates and Development Plc jumped 2.1% to 107.25 pence after the U.K.-based property developer said revenues in the year ending in March soared 77% to £57.7 million from £32.6 million in a year ago period.

Net profit in the period plunged 28.3% from a year ago to £37.9 million compared to £52.9 million and diluted earnings per share slipped to 7.2 pence from 10.2 pence.

Separately, the company agreed to sell 50% stake in Hilton hotel at Wembley Park for £40 million in cash.

Compagnie Financiere Richemont SA slipped 1.1% to 85.90 Swiss francs after the Switzerland-based luxury goods maker reported revenues in the year ending in March jumped 4% to €10.4 billion from €10 billion in a year ago period.

Net profit in the period tumbled 35.6% from a year ago to €1.3 billion compared to €2.1 billion and earnings per share dropped to €2.36 from €3.68.

Severn Trent Plc decreased 1.3% to 2,154 pence after the U.K.-based water services provider reported revenues in the year ending in March increased 2.3% to £1.80 billion from £1.76 billion in a year ago period.

Net profit in the period plummeted 72.4% from a year ago to £120.2 million compared to £434.9 million and diluted earnings per share dropped to 49.6 pence from 181.3 pence.