Latest news with #Serica
Daily Mail
4 days ago
- Business
- Daily Mail
London's Junior AIM market to shrink by 20% as it's 'brutally knocked back' by takeovers or other exits
London's junior Aim market is on course to shrink by a fifth this year as it is 'brutally knocked back' by takeovers or other exits, figures show. Data compiled by fund manager Aberdeen and broker Peel Hunt show 61 companies, worth a combined £12.3billion, have announced plans to leave Aim, amounting to 20 per cent of the market by value. It is the latest blow to the City as London's undervalued listed firms fall victim to foreign predators or up sticks and leave for overseas markets. Aim's predicament highlights the difficulties facing smaller listed companies in particular. Some of those exiting are moving to London's main market. The report said that 'barely a week goes by' without an announcement of a company making such a move. A total of 89 companies left the junior exchange last year, with just 18 joining. Examples of recent departures include North Sea energy firm Serica, which is moving to the main London stock exchange, and healthcare firm Alliance Pharma, which has been sold to asset management firm DBay Advisors. Abby Glennie, co-manager of the Abrdn UK Smaller Companies Fund, said: 'AIM was once a thriving market, but it has been brutally knocked back by outflows in recent times. 'As a result, we're seeing many of the biggest and best AIM companies moving to a main market listing. 'It is a very ominous sign. Eventually we will be left with a tiny, illiquid market. That's fine for small, individual investors but will make it very hard to get large-scale institutional money into the growth companies of tomorrow. In that scenario, we need to be asking: 'How are we going to nurture the next generation of big UK companies?'' Proposals to boost Aim were included in the recent Mansion House Accord, under which pension firms have been persuaded to allocate 5 per cent of their funds towards UK assets. The agreement mainly covers private assets including real estate and infrastructure rather than publicly listed shares. But the latest version of the accord will now see shares listed on Aim or Aquis, a rival junior market, count towards the target.
The Herald Scotland
12-05-2025
- Business
- The Herald Scotland
Job fears mount as oil and gas firms cut North Sea spending
Concerns have intensified amid the plunge in oil and gas prices that has followed Mr Trump's decision to impose tariffs on more than 50 countries. Brent crude fell from $75 per barrel on the day he announced the plan in April to a four-year low of $58.60/bbl a week later. The price has fluctuated wildly since as the president has appeared to amend his plans on the hoof in response to the concerns of politicians and investors around the world. Brent crude rose 3%, to $65.76/bbl, in morning trading after the US and China agreed a deal to reduce tariffs for 90 days. However, uncertainty about Mr Trump's longer-term intentions could weigh on the global economy for months. Members of the Opec+ exporters group, which includes Saudi Arabia and Russia, added to the pressure on crude prices last week when they agreed to increase output significantly. Signs that the market ructions will have a damaging impact on the North Sea have become increasingly clear. Last week one of the biggest producers in the North Sea, Harbour Energy, announced plans to shed 250 jobs in a move it said would result in at least a 25% reduction in headcount. The Aberdeen-based group highlighted market volatility and said it was taking mitigating actions to offset the impact of lower commodity prices. It also cited the impact of fiscal and regulatory uncertainty in the UK. The Labour Government increased the rate of the windfall tax in October and has said it will not issue exploration licences covering new areas. The regulatory assessment process for new field developments is under review. James Reid, senior research analyst at the Wood Mackenzie energy consultancy said uncertainty about the outcome of that review was deterring firms from investing in pre-production projects. A consultation process regarding the North Sea fiscal regime ended last month. READ MORE: Just Transition furore reignited as SNP Government flunders READ MORE: North Sea giant plans $500m investor payouts amid slump fears Mr Reid said a range of firms say they have hoppers of opportunities that they want to get after but won't move until supportive fiscal and environmental regimes are in place. Harbour axed 350 jobs in Aberdeen in 2023 a move it blamed on the introduction of the windfall tax by the former Conservative Government. Other significant North Sea players have found their plans unravelling since Mr Trump dropped his tariff bombshell. On March 7 Serica Energy and EnQuest announced they were in talks about combining their operations in a move they said would provide a platform for growth in the area. Early this month, however, the companies abandoned the talks. 'In light of current market volatility an agreement on terms that would have been in the best interests of shareholders was not possible at this time,' said Serica. The ending of the talks left question marks hanging over both firms. The deal would have been structured as a takeover of Serica and may have been seen as signalling that the company's directors were ready to listen to offers. Shares in Serica have risen strongly since the deal talks ended. EnQuest shares have fallen. Mr Reid at Wood Mackenzie said some firms might decide that the current uncertainty creates opportunities in what would probably be seen as a buyers' market. Viaro Energy has shown it has the appetite to acquire and invest in North Sea assets in recent months. The fall in commodity prices could give fresh impetus to a process of upheaval in the North Sea which looks set to have a transformational impact on the operations of majors in the area. In December Shell and Equinor agreed to combine their North Sea operations, months after Eni and Ithaca Energy agreed a similar deal. BP has yet to respond as it looks to fend off reported bid interest. With chief executive Murray Auchincloss under pressure to boost BP's flagging share price, giants are thought to be mulling bids for the firm. The FT reported that Shell, ExxonMobil, Chevron, TotalEnergies and AdNoc of Abu Dhabi have been running the rule over BP, citing unnamed industry sources and advisers. A takeover of BP could result in huge job losses in the North Sea and Aberdeen. Any acquirer would expect to achieve significant cost synergies. Even if BP escapes the attention of predators the firm will likely step up efforts to cut spending. Shell chief executive Wael Sawan has highlighted the potential to use AI to help reduce the number of people it needs to complete projects. The impact of the consolidation process will be felt across the wider supply chain, which is already being squeezed. One of Scotland's leading oil services firms is facing a crucial week amid the prospect that it could soon surrender its independence. Wood group is the subject of a £240m takeover bid by Sidara of Abu Dhabi, which has until 5pm on Thursday May 15 to decide whether it will make a firm offer. Sidara decided to walk away after making a £1.5bn bid in August last year. The outcome of Sidara's latest deliberations is likely being awaited anxiously by around 4,500 people working in the North Sea operations that Wood runs mainly out of Aberdeen. Last month Wood directors said they would recommend that shareholders accept an offer on the 35p per share terms proposed.
Reuters
02-05-2025
- Business
- Reuters
EnQuest bows out of Serica deal as market jitters hinder agreement on terms
May 2 (Reuters) - North Sea-focused oil producer EnQuest (ENQ.L), opens new tab will not make an offer for UK's Serica Energy (SQZ.L), opens new tab, the companies said on Friday, as the two could not agree on favourable terms in time amid market volatility. EnQuest shares were down about 5% at 13.14 pence, while Serica shares were up 0.3% at 127 pence at 1623 GMT. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. Serica said in March it was in talks with EnQuest about a possible deal. The termination occurs amid a broader wave of economic uncertainty fueled by sweeping global tariffs imposed by U.S. President Donald Trump. The energy sector has been particularly rattled in early 2025, as recessionary concerns have weighed heavily on oil demand expectations, dragging prices lower as investors brace for a slowdown in global consumption. Simultaneously, the OPEC+ alliance has been ramping up oil output, adding to global supply and compounding the downward pressure on prices. The ripple effects of the trade tensions extend beyond energy. U.S. crop commodities trader Bunge Global 's (BG.N), opens new tab planned $34 billion merger with Glencore-backed (GLEN.L), opens new tab Viterra is being stalled due to escalating U.S.-China trade friction, Bloomberg News reported on Friday, citing people familiar with the matter. The trade tensions have also significantly narrowed the window for initial public offerings. Among the companies that have recently put their IPO plans on hold are Swedish fintech firm Klarna (KLAR.N), opens new tab, San Francisco-based Chime, and ticketing platform StubHub. EnQuest's decision came hours ahead of a "put up or shut up" deadline on Friday for the proposal, which would have given Serica shareholders a majority stake in the combined company and returned capital to investors. Serica said it was confident in its "standalone ability to generate significant cash flow and deliver shareholder value and highly competitive shareholder returns."
