Latest news with #YadarisaShabong
Yahoo
12-06-2025
- Business
- Yahoo
Analysis-As global tumult grows, UK Plc's stability and bargains appeal to dealmakers
By Amy-Jo Crowley, Yadarisa Shabong and Purvi Agarwal LONDON (Reuters) -More than $10 billion in bids for British companies announced on Monday, this year's busiest day according to Dealogic data, showed how low valuations and the market's relative stability were attracting rivals and funds after a volatility-induced pause. Companies may also be using the opportunity to enter the UK market before potential further weakening of the dollar or strengthening of the pound made future transactions more expensive, analysts said. Among those to announce takeover offers for UK firms on Monday were U.S. chipmaker Qualcomm, private equity firm Advent, and France's L'Oreal. While U.S. President Donald Trump's announcement of sweeping tariffs and the resulting volatility hampered dealmaking for weeks, some companies are now finding the right conditions to agree on transactions. Niccolo de Masi, CEO of Maryland-based IonQ, which on Monday announced a $1.08 billion acquisition of British quantum computing firm Oxford Ionics, said that in addition to Britain's talent pool, the geopolitical backdrop made the deal more compelling as governments want more "sovereign quantum networks," he said. "People want things on-premise and they want things to be local," de Masi told Reuters. So far this year, there have already been 30 bids for UK companies valued at more than 100 million pounds ($135.44 million), compared with 26 over the same period of last year and 45 for the whole of 2024, according to Peel Hunt. The total value of 24 billion pounds of deals announced to date compared with 36 billion pounds in the year-ago period, which was skewed by a few large deals, such as International Paper's $7.1 billion bid for D.S Smith. Years of outflows from UK equities that depressed valuations for British companies compared with their competitors listed on other European or U.S. exchanges, have played a role in making them more attractive as acquisition targets. For example, the discount between the FTSE 100 [.FTSE] and the U.S. S&P 500 [.SPX] benchmarks peaked at about 49.5% in January and is about 41% now. "Management teams have been happier to accept bids because sometimes that is an easier way to crystallize the valuations and as equity markets have been so challenging for so long," Amanda Yeaman, co-manager of the abrdn UK Smaller Companies Fund and the abrdn UK Smaller Companies Growth Trust plc. Moreover, bidders are being drawn to a relatively stable UK economic and political backdrop. "We now have an improving economic environment in the UK, and the regulatory position is much more predictable," said Charles Hall, head of research at Peel Hunt. "Buying a UK company at the moment is likely to be less risky than, say, buying a U.S. business." The trade deals that Britain has pursued also show the country is "open for business," Yeaman said. And with no general election due soon, Britain promises political stability. "Our markets really like stability and for the next four years, that is something that we have, which is less predictable in other geographies," she said. Analysts also say the pound's strength does not seem to act as a deterrent. "Particularly global investors, U.S. investors are thinking, let's grab as much as we can before things get more expensive and currency tailwinds are still there," said Magesh Kumar, equity strategist at Barclays. This year's largest bids so far were all announced this week, with Advent offering 3.7 billion pounds for scientific instruments maker Spectris and Qualcomm's 1.8 billion pound bid for Alphawave, and some advisers expect many more to come. Erik O'Connor, partner at Clifford Chance, said that while economic uncertainties could weigh on the M&A market, factors such as more predictable outlook for interest rates and UK companies' improved balance sheets should encourage dealmaking. "There's a sense that key fundamentals are in the right place to transact," O'Connor said, pointing to technology and real estate, the busiest sectors so far this year according to Dealogic, as those less susceptible to recent market volatility. "I would not be surprised if we continue at a similar pace," he said. ($1 = 0.7383 pounds) Sign in to access your portfolio
Yahoo
06-06-2025
- Business
- Yahoo
Manchester United expects annual core profit to return to pre-COVID levels
By Yadarisa Shabong (Reuters) -Manchester United raised their annual core profit forecast on Friday to levels last seen before the pandemic as the club's strong performance in the Europa League drove ticket sales and broadcast revenue. Ticket sales jumped more than 50% to 44.5 million pounds in the three months to March as the club had a good run in the Europa League, before losing the finals to Tottenham Hotspur. United's New York-listed shares rose 4.4% in U.S. premarket trading. The club's annual core profit, which excludes player trading and finance cost, is expected to jump 21% to 28% to a range of 180 million to 190 million pounds for the year ending June. United had their worst Premier League season since they were relegated in 1974 and hopes of participating in a European competition next season were dashed after they lost the Europa League final. "We had a difficult season in the Premier League, which we all know fell below our standards and we have a clear expectation of improvement next season," CEO Omar Berrada said in a statement. United's absence from European competitions, which are lucrative sources of broadcasting revenue, deals a huge blow to the club's future finances and has drawn anger and disappointment from fans. Jim Ratcliffe, who holds a stake of about 29% in the club and runs their football operations, has taken steps to revive the club's fortunes, including by cutting jobs, raising ticket prices and stopping free lunches at staff canteens. United reported a net loss of 2.7 million pounds for the three months ended March 31, smaller than the 71.5 million pounds it posted a year earlier. The Glazer family, who own a majority of the club, have faced strong criticism from fans for saddling the club with debt, overspending on players and putting off investments on infrastructure. Manager Ruben Amorim said in May that the club did not need a big squad since they were not playing in the Champions League. In March this year, United announced plans to build a new 2-billion-pound 100,000-seat stadium, next to the existing Old Trafford. ($1 = 0.7383 pounds) Sign in to access your portfolio
Mint
02-06-2025
- Business
- Mint
British digital bank Monzos annual profit surges, revenue tops $1.35 billion
(Reuters) -British digital bank Monzo reported revenue above 1 billion pounds ($1.35 billion) for the first time and a sharp rise in annual pretax profit on Monday, driven by strong growth in personal and business customer numbers. The fintech company, which is reportedly gearing up for an initial public offering, posted a pretax profit of 60.5 million pounds for the year ended March 31, 2025, compared with 13.9 million pounds a year earlier. Fiscal year 2024 marked the company's first profitable year. The mobile app-based bank, launched in 2015, is one of several digital banks that have emerged in Britain to challenge the dominance of HSBC, Lloyds, Barclays and NatWest - the country's Big Four. Monzo, which has more than 12 million customers, last year outlined plans to expand into Europe through Ireland and strengthen its presence in the United States. Customer deposits increased 48% to 16.6 billion pounds for the year, the lender said. Monzo has considered listing in either Britain or the United States but has not set a firm timeline or chosen a venue for an IPO, a person familiar with the company's plans told Reuters in March. Sky News reported earlier this month that the lender was preparing to appoint bankers to spearhead its planned stock market floatation. Last October, the British bank was valued at 4.5 billion pounds in an employee share sale to a group of investors, including Singapore's sovereign wealth fund. (Reporting by Yadarisa Shabong in Bengaluru; Editing by Sherry Jacob-Phillips)
The Star
02-06-2025
- Business
- The Star
British digital bank Monzo's annual profit surges, revenue tops $1.35 billion
FILE PHOTO: A smartphone displays a Monzo logo in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration/File Photo (Reuters) -British digital bank Monzo reported revenue above 1 billion pounds ($1.35 billion) for the first time and a sharp rise in annual pretax profit on Monday, driven by strong growth in personal and business customer numbers. The fintech company, which is reportedly gearing up for an initial public offering, posted a pretax profit of 60.5 million pounds for the year ended March 31, 2025, compared with 13.9 million pounds a year earlier. Fiscal year 2024 marked the company's first profitable year. The mobile app-based bank, launched in 2015, is one of several digital banks that have emerged in Britain to challenge the dominance of HSBC, Lloyds, Barclays and NatWest - the country's Big Four. Monzo, which has more than 12 million customers, last year outlined plans to expand into Europe through Ireland and strengthen its presence in the United States. Customer deposits increased 48% to 16.6 billion pounds for the year, the lender said. Monzo has considered listing in either Britain or the United States but has not set a firm timeline or chosen a venue for an IPO, a person familiar with the company's plans told Reuters in March. Sky News reported earlier this month that the lender was preparing to appoint bankers to spearhead its planned stock market floatation. Last October, the British bank was valued at 4.5 billion pounds in an employee share sale to a group of investors, including Singapore's sovereign wealth fund. ($1 = 0.7388 pounds) (Reporting by Yadarisa Shabong in Bengaluru; Editing by Sherry Jacob-Phillips)
Yahoo
07-05-2025
- Business
- Yahoo
UK's FD Technologies soars on possible $722 million buyout by private equity firm
(Reuters) -British data and analytics firm FD Technologies said on Wednesday it is in advanced talks with American private equity firm TA Associates over a possible acquisition offer, valuing the firm at 541.6 million pounds ($722.77 million). Shares of FD Technologies soared 19% to 23 pounds. The possible offer represents a premium of about 27% to the stock's last closing price. TA Associates had proposed to buy the London-listed firm at 24.50 pounds per share in late March, a price at which the FD Technologies board was ready to recommend to shareholders if a formal offer was tabled, the company added. The U.S. firm has until June 4 to make a formal offer or walk away, according to UK takeover rules. ($1 = 0.7493 pounds) (Reporting by Yadarisa Shabong in Bengaluru; Editing by Vijay Kishore)
