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Premarket London: Tesco Eyes Asia Sale; Prosus Raises Just Eat Offer

Published 12/09/2019, 02:15 AM
Updated 12/09/2019, 02:18 AM
© Reuters.

Investing.com -- Here is a summary of the most important regulatory news releases from the London Stock Exchange on Monday, 9th December. Please refresh for updates.

Tesco (LON:TSCO) confirmed that it has begun a strategic review of its businesses in Thailand and Malaysia, with an eye to potentially selling them.

The two-sentence release follows a report in the Sunday Times at the weekend that said Tesco’s remaining Asian businesses could fetch up to $9 billion, or nearly one-third of Tesco’s current market value.

  • Prosus (AS:PRX), the Internet holding company spun off by Naspers Ltd (JO:NPNJn) earlier in the year, has raised its cash offer for Just Eat (LON:JE) by 4.2% to 740 pence per share from 710p.

  • That’s a premium of 25.6% to the undisturbed share price on Oct. 21.
  • Prosus has had to respond because the value of Takeaway.com's (AS:TKWY) rival, all-share bid has risen dramatically in recent days. It’s worth an implicit 723.7p per share as of Friday's closing price.
  • Prosus also cut the minimum acceptances needed to make the deal unconditional to a simple majority.
    • Prosus argues that its cash offer “is the only one that delivers certainty in the face of undeniable industry change," and has claimed repeatedly that Takeaway’s shares will eventually be hit by future investment needs.

    • Independent oil and gas company Tullow Oil (LON:TLW) said chief executive Paul McDade and exploration director Angus McCoss have both resigned with immediate effect, after some damaging failures with the drill bit in recent months and amid ongoing problems with its TEN and Jubilee fields in Ghana.
    • The problems led Tullow to scrap its dividend and cut its forecast for free cash flow next year to $150 million pounds.
    • That's because the group also cut its guidance for production from TEN and Jubilee to between 70,000-80,000 barrels a day next year, and to 70,000 b/d thereafter.
    • Tullow said it will carry out a “thorough reassessment” of its cost base and future investment plans. It plans to spend $350 million in capital expenditure next year.
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  • Loan guarantor Amigo Holdings (LON:AMGO) said both chairman Stephen Wilcke and chief executive Hamish Paton will leave the company, in response to the decision of controlling shareholder James Benamor’s decision to appoint two non-executive directors.
  • Wilcke will step down immediately, while Paton is bound by a 12-month contractual notice period.
  • The news comes after Wilcke and chief analytics assets Nanesh Patel both sold large blocks of stock last week.
  • Amigo announced recently that Abu Dhabi wealth fund Mubadala had raised its stake in the company to 4% from 3%, prompting speculation that a bid may be on the way.
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