Three important things you need to know from across the markets this morning from investment writer, Tony Cross.
Logistics company Wincanton saw its shares surge this morning after news broke that management were recommending an all-cash offer for the business from a private equity play. The premium offered was 52% above last night’s closing price, a deal which it is argued is better than investors could really expect elsewhere, especially given the liquidity constraints often faced by the company. Other bids had been rebutted in recent weeks and the shares are up 47% so far.
Custodian Property Income REIT
Keeping with the M&A theme, but in a less well received move, Custodian Property REIT is to acquire the share capital of Abrdn Property Income Trust. It’s an all share move with the valuations being based on NAVs from 31st December along with some adjustments. The deal is expected to result in synergies but the market movement suggests investors in Custodian Property, trading down 10%, are getting the thin end of the wedge here at least for now.
A Christmas trading update from electrical retailer Currys may have offered up some short lived cheer on Thursday but the gains are proving difficult to sustain. Mid-morning and shares are down more than 4%, giving back around half of Thursday’s gains. Today’s worse than expected UK retail sales figures will have done little to lend support to the outlook for the consumer goods sector, either.
