GlaxoSmithKline Consumer Healthcare Sale Would Dampen Appetite
for Stock
GlaxoSmithKline's plans to retain but split up its Consumer
Healthcare division is widely viewed as an event that could
crystallize value, Jefferies says. This is why a potential sale of
the division--which comes as the company confirmed reports of
acquisition proposals by Unilever--is likely to dampen appetite for
the stock, Jefferies says. "At least initially we expect many
shareholders would fear a large acquisition and the risk of
inferior returns," the investment bank says. The British pharma
major has rejected Unilever's proposals and fairly so, given that a
GBP50 billion bid reflects a modest 10% acquisition premium,
Jefferies says.
Companies News:
Centralnic Sees 2021 Revenue, Adjusted Ebitda Ahead of Market
Views
Centralnic Group PLC said Monday that it expects 2021 revenue
and adjusted Ebitda to rise, exceeding market consensus.
---
Hostmore Expects to Beat FY Ebitda View, Boosted by Strong
December
Hostmore PLC said Monday that it currently expects earnings
before interest, taxes, depreciation and amortization for the year
ending Jan. 2 to beat the market consensus of 18.6 million pounds
($25.4 million), boosted by a better-than-expected December.
---
Unilever Looking to Reposition Portfolio After GSK Consumer
Healthcare Approach -- Update
Unilever PLC said Monday that it has decided to expand its
presence in higher-growth categories after it made an approach for
GSK Consumer Healthcare over the weekend that could potentially be
worth $68 billion.
---
Clinigen Group Agrees to New, Higher GBP1.3 Bln Takeover by
Triton Funds
Clinigen Group PLC said Monday that it has agreed an improved
and final 1.3 billion pound ($1.78 billion) takeover by Triton
Funds.
---
Access Intelligence Says Covid-19 Challenges in Southeast Asia
to Affect 2022, 2023 Ebitda
Access Intelligence PLC said Monday that it expects current
pandemic-induced challenges in Southeast Asia to affect Ebitda in
2022 and 2023 as they have been more severe than anticipated.
---
Angus Energy Shares Rise on Six Approaches to Buy Company
Angus Energy PLC shares rose Monday after it said that it has
received at least six approaches to participate in its formal sales
process, or making offers for the company and its assets.
---
Eurowag Shares Rise After Backing 2021 Guidance, Clearance of
Webeye Acquisition
Shares of W.A.G. Payment Solutions PLC rose Monday after the
company, known as Eurowag, said it expects 2021 adjusted earnings
before interest, taxes, depreciation and amortization--which strip
out exceptional and other one-off items--to be in line with the
board's expectations, boosted by revenue growth.
---
H&T Group Expects 2021 Revenue in Line With Market Views
H&T Group PLC said Monday that it expects 2021 revenue to be
in line with market expectations, and that its performance in the
second half of the year was consistently strong.
---
Pebble Group Expects 2021 Results to Exceed Market Views
Pebble Group PLC said Monday that it expects 2021 results to
exceed market expectations as both its Facilisgroup and Brand
Addition businesses performed well throughout the year.
---
Leeds Group Swung to 1H Pretax Loss, Shares Fall
Shares in Leeds Group PLC fell Monday after the company said it
swung to a pretax loss in the first half of fiscal 2022 as its
performance was hurt by restrictions across Europe to curb the
Omicron coronavirus variant.
---
Hurricane Energy Production Met Views, Revenue Rose in 2021
Hurricane Energy PLC said Monday that production met
expectations and revenue rose in 2021, and it expects to soon pay
off its bond debt.
---
Yourgene Health Raises Guidance Again
Yourgene Health PLC said Monday that it expects to beat upgraded
market revenue forecasts for the year, its third upgrade since
October.
---
Forward Partners Appoints Lloyd Smith as CFO
Forward Partners Group PLC said Monday that it has appointed
Lloyd Smith as chief financial officer with effect from March
21.
---
M.P. Evans 2021 Crop, Production Increased; Announces Special
Dividend
M.P. Evans Group PLC said Monday that crop and production
increased in 2021 and it has announced a special dividend.
---
Oxford BioMedica CEO to Step Down
Oxford BioMedica PLC said Monday that Chief Executive Officer
John Dawson will retire from the company.
---
Unilever Sets Out Ambition to Expand in Health Products
Unilever PLC said it wants to significantly expand its footprint
in health, beauty and hygiene, and plans to sell off slower-growing
parts of its ice cream-to-soap consumer brands empire to fund major
acquisitions.
Market Talk:
Ashmore Has a Lot of Value on the Long-Term Stance
1110 GMT - Ashmore Group's performance update for the quarter
shows short-term uncertainty, which has sent its share price down
by 25% over the past six months, Peel Hunt says. However, the
company still has a lot of value for those looking for a long-term
stance, the U.K. brokerage says. "Ashmore today is as strong as
ever--there is still significant potential to outperform in the
coming years," Peel Hunt says. Shares trade down 1.8% at 284.2
pence.
---
Access Intelligence Hit Hard in Southeast Asia by Covid-19
1059 GMT - For U.K.-based information-and-marketing company
Access Intelligence, the effect of Covid-19 has been harsh in
Southeast Asia as corporate and public-sector customers reduced
spending, finnCap says. The brokerage says that while the company's
post-pandemic prospects remain strong, with planned investment set
to continue and even accelerate, it lowers its revenue and earnings
expectations for fiscal 2022 and fiscal 2023. "We look forward to
continuing proof of execution in the U.K. and Australia/ New
Zealand, and evidence of recovery in south east Asian customer
spend, at which point with a healthy cash buffer throughout the
forecast horizon, the valuation can respond and confidently look
into 2023 and beyond," it says. FinnCap lowers its target price on
the stock to 210 pence from 225 pence. Shares are down 24% at 116
pence.
---
UK GDP Growth Seen Lower in 2022 as Omicron Takes Its Toll
1040 GMT - UBS has updated its U.K. GDP forecasts for 2021 to
2023 to 7.2% growth in 2021, from 7.0%, due to upward revisions to
previous quarters, and to 4.3% in 2022 from 4.6% previously.
"Despite the limited tightening in mobility restrictions in
response to the spread of Omicron, voluntary social distancing and
staff absences are expected to weigh on activity in the fourth
quarter of 2021 and 1Q of 2022, and this is the key factor driving
the cut in our 2022 forecast," economists at UBS say. For 2023, UBS
forecasts 1.8% GDP growth, up from 1.5% previously.
---
Taylor Wimpey May Face Hurdles Despite Positive Update
1012 GMT - Taylor Wimpey shares rise 3% after the U.K.
house-builder reported in-line 2021 trading and said it intends to
start a share buyback. "Management seemed cautiously optimistic in
its outlook statements, with the group on track for full-year
guidance, but referring to economic uncertainty and continued
build-cost inflation," Hargreaves Lansdown analyst Matt Britzman
says. "Higher selling prices are enough to offset rising costs for
now, but there's a limit to how long that can continue - especially
if broader costs of living and mortgage rates increase."
---
GSK Consumer Health Arm May be Worth More on its Own
0957 GMT - A potential sale of GlaxoSmithKline's consumer
healthcare business to rival Unilever holds positives and negatives
for the drug company's shareholders, says AJ Bell. While GSK
management would probably welcome being paid a high price for the
division, some long-term GSK investors may not want a sale as they
might have been looking forward to the consumer-goods unit being
de-merged later this year, the brokerage says. "De-mergers can be
beneficial as management are able to run the business with more
freedom, rather than simply being a division of a bigger company
and having to follow group protocol," Bell's investment director
Russ Mould says. "Therefore, the consumer goods arm could be worth
a lot more in time." GSK shares rise 4%.
---
Taylor Wimpey's 2021 Update Should Reassure Investors
0930 GMT - Taylor Wimpey's 2021 update was reassuring,
reiterating 2021 performance will meet expectations on the back of
a support backdrop, and committing to return excess cash, Citi
says. The house builder's outlook remains positive, though the
update is unlikely to significantly change market consensus, the
U.S. bank says. "[The] group's reassuring update--on track to
deliver on its medium-term guidance and committed to return excess
cash by way of share buyback--should support sentiment on the
shares and drive a re-rating in our view," Citi says, adding that
the stock's price looks relatively cheap given Taylor Wimpey's 2022
targets. Citi retains its buy rating and 225 pence price target on
the stock. Shares are up 2.6% at 158.0 pence.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
January 17, 2022 06:34 ET (11:34 GMT)
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